]The Telangana Real Estate Regulatory Authority (TG RERA) has ordered infrastructure company The Building Co to refund ₹30 lakh with 11 percent annual interest to a flat buyer in its ‘TBC Rasagna North’ project located at Pet Basheerabad in Kompally.
The order, issued on September 4, was passed under the provisions of the Real Estate (Regulation and Development) Act after the authority found the developer guilty of collecting funds under a pre-launch offer without proper registration or a valid sale agreement. In addition to the refund, TG RERA imposed a penalty of ₹5 lakh on the promoter and warned that any future violations would invite more stringent action.
The complaint was filed by Pratik Jalan, a resident of Tarbund in Secunderabad, who had booked a flat in September 2019. Jalan paid ₹15 lakh in installments through bank transfers before signing a memorandum of understanding (MoU) on February 27, 2020. The MoU fixed the price of the flat at ₹48.3 lakh for a built-up area of 1,152 sq ft and set a delivery timeline of 30 months from the date of approval by the Greater Hyderabad Municipal Corporation (GHMC), with an additional grace period of six months. The GHMC granted building permission on February 15, 2020, meaning the possession deadline, after including the grace period, was August 14, 2023.
The project was registered with TG RERA only in September 2020, by which time Jalan alleged that the revised MoU and a subsequent agreement of sale signed in August 2023 were one-sided and tilted heavily in favor of the promoter. He argued that the delays, coupled with the lack of buyer protection, left him with no option but to seek withdrawal. He cited mental agony and non-fulfillment of his rights as an allottee under the Act as reasons for filing the complaint.
After examining the case, TG RERA concluded that the promoter had collected advances exceeding 10 percent of the total consideration without executing a proper agreement for sale, which is a violation of Section 13 of the RERA Act.
The authority also took note of the delays in delivering the unit, even after accounting for the Covid-19 moratorium period. The refund with interest was directed to be calculated from May 5, 2025, which was considered the revised possession date after factoring in pandemic-related extensions, until the actual date of payment.
The promoter has been instructed to deposit the penalty amount into the TG RERA fund within 30 days. Officials from the authority said that such orders were meant to serve as a deterrent to developers who bypass regulations and collect money from unsuspecting buyers during pre-launch offers. They emphasized that RERA’s role is not only to regulate real estate projects but also to ensure transparency and accountability in the market, especially in protecting homebuyers from unfair practices.
Image source- telangana.gov.in
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