In a strong reaffirmation of homebuyer rights under the Real Estate (Regulation and Development) Act, 2016, the Telangana State Real Estate Regulatory Authority (TG RERA) has directed Apoorva Infra to refund ₹4.35 lakh along with 10.70% annual interest to an allottee after finding serious lapses in project execution and regulatory compliance.
The Authority held that failure to complete the project within the promised timeline, coupled with the lapse of RERA registration, entitled the buyer to exit the project and seek a full refund with interest.
The complainant, D. Shivannageshwar Rao from Suryapet district, had booked an open plot in Swaminarayana Eco Township, a project promoted by Apoorva Infra. On June 9, 2022, he paid ₹4.35 lakh, approximately 25% of the total consideration of ₹17.41 lakh.
Despite the payment, the project allegedly saw no basic development, including:
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Internal roads
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Drainage facilities
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Water supply
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Electricity infrastructure
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Promised amenities
Further, plot registrations were stalled due to disputes between the developer and landowners.
Dishonoured Cheque and Refund Dispute
After repeated requests for a refund, Apoorva Infra issued a cheque for ₹4.35 lakh, which was later dishonoured due to insufficient funds.
The developer claimed the cheque was merely a “security instrument”, while the complainant asserted it was issued specifically towards refund, a claim backed by WhatsApp communications placed on record.
TG RERA observed that issuing a cheque for the exact amount received, without any contemporaneous clarification, undermined the promoter’s defence that it was only a security cheque.
Developer’s Defence Rejected
Apoorva Infra argued that:
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The complainant failed to pay the balance amount
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The allotment was never formally cancelled
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Delays were caused by Covid-19 disruptions and landowner resistance
However, TG RERA rejected these contentions, noting that:
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The project’s declared RERA completion date was May 24, 2023
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No proof of project completion was produced
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RERA registration had lapsed without seeking extension
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Covid-19 cannot be cited as force majeure for commitments made post-pandemic
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Landowner disputes are internal matters of the promoter and cannot justify indefinite delay
Buyer’s Right to Exit Clearly Upheld
Reiterating Section 18(1) of the RERA Act, TG RERA held that an allottee has an absolute right to withdraw from a project and seek refund with interest if possession is not delivered within the agreed timeline.
The Authority emphasized that a buyer cannot be compelled to wait indefinitely in the absence of revised timelines, supplementary agreements, or credible assurances of completion.
Final Directions Issued by TG RERA
TG RERA directed Apoorva Infra to:
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Refund ₹4.35 lakh with 10.70% annual interest (SBI MCLR + 2%) from June 9, 2022, till actual payment
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Complete the refund within 40 days from receipt of the order
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Immediately initiate steps to complete the project as per statutory requirements
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Refrain from advertising, marketing, or selling plots until RERA registration is duly extended
The Authority further warned that any violation would attract penalties under Section 63 of the RERA Act, reinforcing strict regulatory oversight.
