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Telangana RERA has ruled in favor of a homebuyer, ordering Parijatha Homes & Developers to compensate for a delayed flat handover. Buyer Kollepara Veera Venkata Satya Vara Prasad paid INR 27.50 lakh for a unit in 'Parijatha Pride,' which was due for possession by December 2021. Delays forced him to pay home loan EMIs without access to the property. The builder blamed COVID-19 and cost escalations but failed to meet promised deadlines. RERA directed completion within 90 days and imposed an 11.1% annual interest penalty on payments since January 2022. The case highlights growing accountability in the real estate sector.
The Telangana State Real Estate Regulatory Authority (RERA) has directed a builder to compensate a buyer for delays in handing over a flat. The case highlights ongoing challenges in the real estate sector, where buyers often face delays and financial burdens. Advertisement
The complainant, Kollepara Veera Venkata Satya Vara Prasad, purchased a flat in Block-II of 'Parijatha Pride' and paid INR 27.50 lakh between October 2020 and November 2021. According to the sale agreement, the builder was supposed to deliver the flat by December 2021. However, Prasad faced repeated delays, which caused him financial strain as he continued to pay home loan EMIs without receiving possession of the property.
During a meeting of flat buyers in November 2023, the builder promised to deliver the flat by January 31, 2024, and to compensate Prasad with a monthly rent of INR 7,500 if there were further delays. Unfortunately, this promise was not fulfilled, leading Prasad to seek help from RERA.
The builder, Parijatha Homes & Developers Pvt. Ltd., argued that the delays were due to factors beyond their control, such as the COVID-19 pandemic, labor shortages, and rising material costs. They also claimed that a registered sale deed from April 2021 indicated that possession had been delivered, and that the complainant's inability to occupy the flat was due to a pending occupancy certificate.
After reviewing the evidence, RERA sided with the buyer. The authority ordered the builder to complete the remaining construction and hand over possession within 90 days. Additionally, the builder must pay an interest rate of 11.1% per annum on the buyer's payments, calculated from January 1, 2022, until the flat is handed over. They were also instructed to obtain the occupancy certificate and provide it to Prasad upon delivery.
This ruling underscores the importance of accountability in the real estate sector. Buyers often invest their life savings in properties, and delays can lead to significant financial challenges. RERA's decision serves as a reminder that builders must adhere to timelines and commitments made to their customers.
The case also reflects a broader trend in the real estate market, where buyers are increasingly turning to regulatory bodies like RERA for support. As more individuals become aware of their rights, the pressure on builders to comply with regulations and deliver on promises is likely to increase.
In conclusion, while the ruling provides some relief to the affected buyer, it also highlights the need for greater transparency and efficiency in the real estate industry. As the market continues to evolve, both buyers and builders will need to navigate these challenges carefully to ensure a fair and equitable process for all parties involved.
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