Telangana RERA Fines Builder for Delay, Directs Compensation to Homebuyer

In a significant move to uphold homebuyer rights, the Telangana State Real Estate Regulatory Authority (RERA) has directed Parijatha Homes & Developers Pvt. Ltd. to compensate a buyer for delays in handing over a flat. The builder is mandated to pay interest to the buyer until the flat's possession is delivered and to complete the remaining construction, secure the necessary occupancy certificate, and hand over the flat within 90 days.

Background of the Case

The complainant, Kollepara Veera Venkata Satya Vara Prasad, purchased a flat in Block-II of the 'Parijatha Pride' project. Between October 2020 and November 2021, he paid ₹27.50 lakh for the property. As per the sale deed, small office space in Noida the flat was to be delivered by December 2021. However, the builder failed to meet this deadline, causing financial strain on Prasad, who continued to pay home loan EMIs without possessing the property.

In a meeting held on November 10, 2023, the builder assured buyers that the flat would be handed over by January 31, 2024, and agreed to compensate Prasad with a monthly rent of ₹7,500 from February 28, 2024, in case of further delays. This commitment was not honored, prompting Prasad to seek relief through RERA.

Builder's Defense

Parijatha Homes & Developers Pvt. Ltd. cited uncontrollable factors such as the COVID-19 pandemic, labor shortages, and rising material costs as reasons for the delay. They also claimed that a registered sale deed executed on April 17, 2021, indicated possession had been given, and the buyer's inability to move in was due to the pending occupancy certificate.

RERA's Verdict

After reviewing the arguments and evidence, RERA members K. Srinivasa Rao and Laxminarayana Jannu ruled in favor of Prasad. The authority commercial property in Noida ordered the builder to complete the remaining construction, obtain the occupancy certificate, and hand over the flat within 90 days. Additionally, the builder must compensate the buyer for the delay by paying interest until possession is delivered.

Implications of the Ruling

This ruling underscores the protective measures RERA provides to homebuyers. The Real Estate (Regulation and Development) Act, 2016, mandates that builders adhere to project timelines and ensures accountability in the real estate sector. Under RERA, if a builder fails to deliver possession on time, the homebuyer is entitled to compensation for the delay.

This also applies to commercial property investments, such as office space for sale in Noida Sector 140, food court for sale in Noida, and other. Investors must verify RERA registration before purchasing to avoid legal complications due to project delays.

In cases where possession is delayed for an extended period, the homebuyer has the right to terminate the agreement with the developer and claim a full refund of the paid amount along with compensation. The builder is then obligated to refund the amount within 45 days, failing which they would be liable for additional penalties.

Understanding RERA's Role

The Real Estate (Regulation and Development) Act, 2016, was enacted to protect the interests of homebuyers and promote transparency and accountability in the real estate sector. Under RERA, builders are required to complete the project and hand over possession by the date specified in the agreement of sale. If the builder fails to deliver possession on time, the homebuyer is entitled to compensation for the delay.

This law is equally applicable to commercial real estate investments, such as or larger office spaces for sale in Noida. Investors looking for office space for sale in Noida Sector 140 should ensure that the property is RERA-compliant to avoid financial setbacks due to project delays.

The Act also mandates that builders register their projects with RERA before advertising or selling. Failure to do so can result in penalties extending up to 10% of the estimated project cost. On continued violation, the builder may face imprisonment of up to three years or further fines.

Steps for Homebuyers Facing Delays

For homebuyers experiencing delays in possession, the following steps are advisable:

1. Send a Legal Notice: Notify the builder demanding possession of the flat or compensation for the delay.

2. File a Complaint with RERA: If the builder fails to respond or comply, file a complaint with the RERA Authority.

3. Approach Consumer Court: If RERA action is not effective, approach the Consumer Court for redressal under the Consumer Protection Act, 2019.

4. File a Civil Suit: As a last resort, file a civil suit for breach of contract and claim damages for the delay.

It's essential for homebuyers and commercial real estate investors to be aware of their rights under RERA and take timely action to safeguard their interests. Whether purchasing a food court for sale in Noida or small office space in Noida, ensuring RERA compliance is crucial.

Conclusion

The Telangana RERA's decision to penalize Parijatha Homes & Developers Pvt. Ltd. sets a precedent emphasizing the importance of adhering to project timelines and upholding homebuyer rights. This ruling reinforces the regulatory framework's role in ensuring transparency, accountability, and fairness in the real estate sector.

For both homebuyers and commercial property investors, such as those seeking office space for sale in Noida, food courts, or other commercial property in Noida, this case serves as a reminder to verify RERA compliance before making an investment decision. RERA continues to be a crucial safeguard against unfair real estate practices, ensuring that buyers receive their properties on time and with due legal protections.