The Telangana Real Estate Regulatory Authority (TG RERA) has directed Vasavi Realtors LLP to pay interest at 10.8% per annum to buyers of its Vasavi Lake City project in Hafeezpet for failing to hand over possession within the agreed timelines. The order follows complaints by 23 buyers, including Venkata Satya Naga Sudheer Kurapati of Miyapur, regarding delays and lack of communication from the developer.
The complaint pertained to the west wing of the project, which was originally scheduled for handover in August 2023. Despite the developer extending the possession date first to February 2024 under a six-month RERA extension, and later to February 2025, no units were delivered. Buyers alleged they had paid ₹1 crore collectively, with ₹70 lakh through bank transfers and cheques and ₹38 lakh via bank loans, but continued to face uncertainty. They also reported financial strain due to simultaneous EMIs on their existing homes and the Vasavi flats.
The buyers cited deviations in flat size and claimed repeated false assurances from the developer’s representatives, including customer relationship manager Rajnikanth and designated partner Vijay Kumar Yerram.
RERA dismissed the developer’s preliminary objection regarding maintainability, confirming the validity of the complaint despite the dispute resolution clause in the sale agreement. The authority also rejected Vasavi Realtors’ claim that the Covid-19 pandemic constituted a force majeure, noting that the agreement was signed after the pandemic subsided.
The regulator ruled that the contractual possession date of February 28, 2024, including the grace period, would prevail. Vasavi Realtors is required to pay interest from March 1, 2024, until actual handover. The accumulated arrears are to be cleared within 60 days, with subsequent monthly interest payments due by the 10th of each month.
The order allows buyers to pursue separate compensation claims under “Form N” before the Adjudicating Officer. While the developer must complete the project within statutory timelines, buyers are expected to pay pending dues according to the agreed schedule. The builder may charge interest on any delayed payments only if supported by valid progress-linked evidence.
TG RERA noted multiple complaints against the Vasavi Lake City project and warned that any further defaults would trigger proceedings under Section 63 of the RERA Act, 2016. The complaint was allowed in part and disposed of with no order as to costs.
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