The Telangana State Real Estate Regulatory Authority (TGRERA) has issued a significant order directing Parijatha Homes & Developers to complete construction and hand over Flat No. 104 in Block-2 of the ‘Parijatha Pride’ project within 90 days. The order follows a complaint filed by Kollepara Veera Venkata Satya Vara Prasad, who accused the builder of failing to provide physical possession despite the flat being registered in his name in April 2021.
Background of the Complaint
The homebuyer alleged that he had paid the full sale price of the flat and completed the registration process. However, despite promises from the builder, physical possession was not handed over as expected by December 2021.
In response to the delay, the builder assured the complainant in a letter dated November 22, 2023, that the flat would be delivered by January 31, 2024, and also promised compensation of ₹7,500 per month from February 28, 2024, until possession was granted. The complainant asserted that the builder failed to fulfill these commitments, causing severe financial difficulties.
Builder’s Defense and RERA’s Findings
Parijatha Homes & Developers argued that possession had already been delivered as per the sale deed. The developer cited reasons such as the Covid-19 pandemic, labor shortages, and increased material costs as the primary causes of the delay. However, TGRERA found that the possession mentioned in the sale deed was only symbolic and that the buyer had not received actual physical possession of the flat.
The regulatory authority ruled that the builder is responsible for the delay and must compensate the homebuyer accordingly.
TGRERA’s Order and Builder’s Obligations
- Completion and Possession: Parijatha Homes must complete all pending construction work and hand over the physical possession of Flat No. 104 within 90 days from the order date.
- Monthly Compensation: The builder must pay interest at a rate of 11.10% per annum for every month of delay from January 2022 until possession is delivered.
- Occupancy Certificate: The builder is required to obtain the Occupancy Certificate (OC) at its own cost before handing over possession.
Impact on Homebuyers and the Real Estate Sector
This ruling highlights the increasing accountability of developers under RERA regulations and reinforces the rights of homebuyers. By ensuring timely delivery and financial compensation, TGRERA continues to set a precedent for consumer protection in the real estate sector.
Future Implications
The decision serves as a warning to builders who fail to honor commitments and delay handovers. It also emphasizes the importance of regulatory compliance, transparency, and ensuring homebuyers receive timely possession of their properties.
For homebuyers facing similar issues, this case underscores the importance of seeking RERA intervention to protect their rights.
