TG-RERA Penalises Builder ₹12.3 Lakh for Nine-Year Delay in Villa Possession at Tellapur

The Telangana Real Estate Regulatory Authority (TG-RERA ) has taken strong action against a builder for a significant delay in handing over possession of a villa to its owners in the Aakriti VIVA project, situated in Tellapur. The authority imposed a penalty of ₹12.3 lakh on the developer and ordered completion of the villa construction with possession to be transferred within 30 days.

The complaint was filed by Neelima Vanamala and Srikanth Leburu, who purchased Villa No. 113 in the project in October 2014 for ₹73.4 lakh. By January 2015, they had paid ₹66.4 lakh and executed a registered sale deed. Despite the passage of more than nine years, the project remains incomplete, and possession has not been granted. The buyers alleged that the builder was responsible for repeated delays and accused the developer of misappropriating funds.

They also claimed that the builder attempted to encash blank cheques issued by them in 2015, without informing them, as late as 2022. The complainants estimated their financial losses at ₹70.2 lakh, factoring in rent paid while awaiting possession, interest on home loans, and compensation for the delay.

On the other hand, the developer challenged the complaint. The builder questioned the validity of the registered sale deed, claiming it was executed without proper consideration. The developer also referenced approvals obtained from the gram panchayat and the Hyderabad Metropolitan Development Authority (HMDA), and pointed to ongoing legal disputes and exchange of notices between the parties. The builder contended that the complainants were attempting to avoid paying the remaining amount while simultaneously demanding possession of the villa.

After examining the submissions and evidence presented by both parties, TG-RERA  ruled that the complainants must clear their outstanding dues along with an interest rate of 11.1 percent. At the same time, the authority ordered the developer to pay compensation for the nine-year delay at a rate of ₹4 per square foot per month. The possession of the villa was ordered to be handed over once both parties meet their respective obligations, including the issuance of a no-dues certificate.

In addition to the monetary compensation, the authority imposed a fine of ₹12.3 lakh on the builder for violating Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016 (RERA). The developer was further prohibited from selling or marketing any units in the project without proper registration. TG-RERA  also issued a warning that if the builder fails to comply with the directives, further action will be initiated under Sections 59(2) and 63 of the RERA Act.