HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) has mandated that a real estate developer refund amounts collected from property buyers, along with interest, due to failure to deliver the project on time. The directive was prompted by complaints from two buyers reporting a breach of agreement and non-compliance with the agreed terms.
In one case, Musunuru Siva Sankara Rao, a resident of Peerzadiguda, approached RERA after Jayathri Infrastructure failed to deliver a commercial space in the Western Galaxy project by the set deadline of December 2024. The Memorandum of Understanding (MOU) was signed in February 2021, and the buyer had paid Rs 16 lakh for a 300 sqft commercial space in two instalments. According to the MOU, the property delivery was promised by December 2024, and provisions for compensation, including rental payments, were outlined. Specifically, the MOU stipulated that rent of Rs 50 per square foot would be provided until December 2024 and Rs 100 per square foot starting January 2025.
After reviewing the complaint, RERA ordered the developer to refund the total investment plus interest at a rate of 10.8% per annum from the date of the MOU until the amount is realized.
In another instance, Kalvala Suman from Ghatkesar filed a similar complaint regarding delivery delays with the same developer. Suman had paid Rs 11 lakh in three instalments. RERA issued a similar order as in the first case, requiring the developer to refund the total amount with a 10.8% interest rate within 45 days of the order.
RERA noted that there were over 20 similar complaints against Jayathri Infrastructure related to this project and initiated similar actions for each of those cases.
