HYDERABAD: The Telangana Real Estate Regulatory Authority (TG RERA) has mandated Vasavi Realtors LLP to pay 10.8% annual interest to buyers of the Vasavi Lake City project at Hafeezpet due to delays in possession delivery.
A group of 23 buyers, including Venkata Satya Naga Sudheer Kurapati from Miyapur, lodged a complaint citing significant delays and poor communication from the developer regarding the west wing of the project. The original handover was set for August 2023 but saw extensions to February 2024 and then February 2025, none of which were fulfilled.
The buyers reported having paid a total of 1 crore, including 70 lakh via bank transfers and cheques and 38 lakh through loans, yet have not received their flats. They also mentioned numerous follow-ups with developer representatives, who only offered false reassurances, and highlighted issues with flat size discrepancies. The buyers noted financial strain due to EMI payments on both their existing residence and the Vasavi flat since August 2023.
Authority rejects builder’s objections
RERA dismissed the developer’s initial objections about the complaint, affirming its validity despite the dispute resolution clause in the sales agreement. The authority found the developer’s claims citing the Covid-19 pandemic as a force majeure to be baseless, as the agreement was signed after the pandemic’s impact.
RERA ruled that the contractual possession date of February 28, 2024, including a grace period, stands firm. Consequently, the builder is required to pay 10.85% interest from March 1, 2024, until actual possession is handed over. Payments due up to the order’s date must be made within 60 days, with ongoing monthly interest payments due by the 10th of each month.
The order allows complainants to initiate separate compensation proceedings before the Adjudicating Officer using “Form N.” The builder must complete the project and transfer possession within the stipulated timelines, while buyers are to settle any pending dues based on the agreed schedule. The builder may charge interest on delayed payments only with valid progress-linked evidence.
Given multiple complaints against this project, RERA cautioned that further defaults could result in action under Section 63 of the RERA Act, 2016. The complaint was partially approved and disposed of with no cost orders.
