The Telangana Real Estate Regulatory Authority (TGRERA) has ordered Sensation Vijetha Infra Developers to refund a buyer and imposed a penalty of INR 2.26 lakh for delays in project completion and failure to register the project. G Swetha had entered into an MoU with the company in March 2020 for a commercial space, but the developers failed to begin construction. While they agreed to refund INR 10,00,000, Swetha claimed to have paid an additional INR 3,50,000 in cash, which was not proven. TGRERA ruled that the developers violated the Real Estate Act and ordered them to refund the remaining amount.
The Telangana Real Estate Regulatory Authority (TGRERA) has ordered Sensation Vijetha Infra Developers to issue a refund to a buyer and imposed a penalty of INR 2.26 lakh due to delays in completing a project and failing to register it with the authority. According to the complaint filed by G Swetha, she had signed a Memorandum of Understanding (MoU) with the company in March 2020 to purchase a 250-square-foot commercial space in Sensation Vijetha Mall. However, as the company did not commence construction, they were required under the MoU terms to refund the amount along with 15% interest.
The developers acknowledged the MoU and Swetha's investment but attributed the delay to internal disputes and legal issues with the landowners, stating they were willing to return the initial investment of INR 10,00,000 with interest as directed by TGRERA.
During the hearing, Swetha claimed that, in addition to the documented amount, she had paid INR 3,50,000 in cash, bringing the total to INR 13,50,000, although no receipt was available for this additional payment. She presented WhatsApp messages as evidence, but TGRERA found this insufficient as the developers did not confirm receipt of the cash.
TGRERA ruled that the developers had refunded INR 7,50,000 but still owed INR 2,50,000. It was noted that the developers had not obtained the necessary permissions nor registered the project, violating Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016. The authority further noted that they had advertised and sold property without registration, thereby warranting penalties under Sections 59 and 60 of the Act.
The authority instructed the company to refund the remaining balance with interest and imposed a penalty of INR 2,26,379, to be paid within 30 days, for failing to register the project. Additionally, the developer was directed to register the project with TGRERA after securing the required permissions and to refrain from advertising or selling any plots or units in the project until registration is complete. Both parties retain the right to appeal this decision with the Telangana Real Estate Appellate Tribunal within 60 days if dissatisfied.
The case highlights the importance of timely project completion and legal compliance in the real estate sector. TGRERA's ruling reinforces the necessity for developers to register projects and adhere to agreements, protecting buyers' interests. By imposing penalties and requiring refunds, the authority ensures that developers follow regulations, fostering trust in the sector. Both parties can appeal the decision, underscoring the legal recourse available for aggrieved individuals in the real estate industry.
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