In a significant decision upholding the rights of homebuyers, the Telangana Real Estate Regulatory Authority (TGRERA) has directed Fortune99 Homes Infra Pvt. Ltd. to refund ₹56.8 lakh with 11% annual interest to a group of buyers for failing to deliver six plots in its Fortune Pharma City 1 project in Rangareddy district.
The amount is to be refunded within 90 days from the date of the order, with interest calculated from August 11, 2021, the date of the agreement. TGRERA also imposed a penalty of ₹10.38 lakh on the developer for violating statutory provisions under the Real Estate (Regulation and Development) Act, 2016.
Buyers Misled by False Promises
The complainants stated that they paid ₹31.8 lakh initially in 2021 and were later forced to pay another ₹25 lakh due to claimed changes in plot size and layout. Despite these payments, the plots were neither registered in their names nor developed, and crucial infrastructure like roads, drainage, and sewerage systems was not constructed.
They were led to believe the project had all required approvals. However, upon investigation, TGRERA found that the project was not registered, violating Sections 3 and 4 of the RERA Act, which mandate registration before advertising or selling.
Developer Ignored Legal Notices
The promoters failed to appear before the Authority or respond to repeated notices. Taking serious note of this, TGRERA ruled in favor of the buyers, citing Supreme Court judgments affirming that buyers have an unconditional right to claim refunds with interest if possession is not delivered.
Key Directions Issued by TGRERA
- Refund ₹56.8 lakh with 11% interest from August 11, 2021, within 90 days.
- Pay a penalty of ₹10.38 lakh within 30 days for non-registration of the project.
- Immediately register the Fortune Pharma City 1 project with TGRERA.
- Cease all sales, bookings, or advertisements until the project is duly registered.
- Failure to comply will result in further action under Section 63 of the RERA Act.
Legal and Regulatory Implications
The order reaffirms the legal requirement for project registration under RERA and the duty of developers to fulfill promises made in advertisements and agreements. TGRERA’s ruling also highlights the buyer’s right to receive timely possession, or else demand refunds with interest, setting a precedent for similar cases involving unregistered or delayed projects.
This decision serves as a reminder that developers cannot evade responsibility by hiding behind layout changes or approvals. The RERA regime ensures transparency, accountability, and enforcement of buyer rights.
