Telangana RERA Upholds Buyer Rights: ₹15.1 Lakh Refund Ordered With 11% Interest

The Telangana Real Estate Regulatory Authority (TGRERA) has taken decisive action in a recent buyer-developer dispute, ordering a real estate firm to either register a mortgage-free plot or refund a total of ₹15.1 lakh to the buyer with 11% annual interest. The directive has been viewed as a strong assertion of the authority’s role in safeguarding homebuyer interests in Telangana’s evolving property market.

Plot Trouble Triggers Legal Scrutiny

The case involved Purshottam Ketepally, a resident of LB Nagar in Hyderabad, who had invested in a residential plot under the ‘SV Golden City 5’ project in October 2022. He initially paid ₹1.08 lakh, followed by a ₹4.09 lakh payment after the sale agreement in December. However, complications emerged when it came to light that the allotted plot was already mortgaged.

After the issue was raised, the builder allegedly offered a different plot within the same project. Trusting the developer, Ketepally went on to pay another ₹10 lakh. But the new plot was never registered, and subsequent communication with the builder reportedly yielded no action. This prompted Ketepally to file a complaint with TGRERA.

TGRERA's Order: Two Options for the Builder

The regulatory authority, after reviewing the complaint, issued a firm order to the developer to resolve the matter within 30 days. The builder has been given two clear options:

• Register a Clear-Title Plot: The builder must provide an unencumbered plot of the buyer’s choice in the same project, ensuring it is free from any mortgage or legal hindrances.
• Refund with Interest: If no acceptable plot is available, the builder must return the full amount of ₹15.1 lakh paid by the buyer. This refund must also include interest at 11% per annum, calculated from the date of each individual payment.

The authority further warned the builder of potential action under Section