The Telangana Real Estate Regulatory Authority (TGRERA) has ordered Aliens Developers to expedite the 'Aliens Space Station' project in Tellapur and hand over the flat to buyer Ganapathi P Gorekar. For the delay since December 2017, developers must pay interest at 10.95% per annum, excluding the Covid-19 waiver period, until possession. Despite securing INR 28 billion and INR 5.2 billion from SWAMIH Fund to revive the project, construction remains incomplete. TGRERA found the developers in breach of the Real Estate Act and mandated interest payment within 90 days. This ruling underscores the need for accountability and consumer protection in real estate..
The Telangana Real Estate Regulatory Authority (TGRERA) has instructed Aliens Developers to expedite the completion of the 'Aliens Space Station' project in Tellapur and to promptly hand over the flat to the complainant, Ganapathi P Gorekar. The authority has also mandated the developers to pay interest at a rate of 10.95% per annum for the delay in possession, which has been accruing since December 2017, excluding the waiver period related to the Covid-19 pandemic, until the flat is delivered.
The complainant initially booked a flat in the project in 2012. Due to construction delays, the booking was modified with an agreement of sale executed earlier in 2016 for INR 6.7 million. By mid-2016, the complainant had paid INR 6.37 million towards the flat and INR 418,000 in taxes, leaving a minor balance to be settled upon possession. Despite assurances from the developers to deliver the flat by December 2017, construction only progressed to the structural frame stage, with finishing work still pending. Over the past five years, repeated commitments from the developers have not resulted in any significant advancement.
In their defence, Aliens Developers attributed the delays to various challenges, including the global economic crisis of 2008, political uncertainties during the bifurcation of Andhra Pradesh, technical and financial difficulties, and setbacks caused by the Covid-19 pandemic. They stated that financial and health-related issues during the pandemic further hindered progress as they prioritised employee welfare. To revive the project, the developers secured INR 28 billion and an additional INR 5.2 billion from the SWAMIH Investment Fund I, a government-backed initiative aimed at stalled residential projects.
The developers noted that similar flats in the project are currently being sold for INR 14.5 million, but they assured the complainant that the flat would be delivered at the previously agreed price of INR 6.7 million.
TGRERA determined that the developers had breached their contractual obligations under the Real Estate (Regulation and Development) Act. The authority has directed Aliens Developers to pay the accumulated interest to the complainant within 90 days and to continue accruing interest for any further delays at three-month intervals until possession is granted. The interest will keep accruing until the issuance of the occupancy certificate or partial occupancy certificate for the relevant tower. The authority has emphasised the necessity for the developers to accelerate construction and ensure the timely delivery of the flat, highlighting the importance of adhering to regulatory and contractual obligations.
In conclusion, TGRERA's directive reinforces accountability in the real estate sector, ensuring that developers adhere to contractual obligations. This case serves as a reminder of the importance of regulatory oversight in protecting consumer rights and enhancing trust in the property market.
Advertisement
Facebook
Whatsapp
