Telangana RERA Orders Refund Over Project Delay!!

Telangana RERA Orders Refund Over Project Delay

The Telangana Real Estate Regulatory Authority (TGRERA) has directed a developer to refund funds collected from two homebuyers—along with applicable interest—for failing to deliver a project within the agreed timeline. This order came after formal complaints citing breach of agreement and contractual terms were filed by the buyers.

What Happened?

• Complaint lodged: Two buyers raised concerns when the developer missed the stipulated project delivery timeline.

• RERA investigation: Upon adjudication, the authority determined there was a clear violation of contractual commitments.

• Refund directive issued: The developer has been mandated to return the paid amounts along with interest, enforcing consumer protection under the Real Estate (Regulation and Development) Act, 2016.

Legal Framework & Consistency with Other RERA Actions

This case is consistent with recent TGRERA rulings:

• In Aura Velimala Phase 1, affecting 62 buyers, RERA levied ₹14.9 lakh in fines and ordered refunds with 11% annual interest after construction stalled at only 20% and the project remained unregistered under the Act.

• The authority also recently penalized five developers across Hyderabad—including Suvarnabhoomi Infra, Edifice Projects, and Bhuvanteza Infraprojects—with fines ranging from ₹5.9 lakh to ₹18 lakh for delays, false advertising, and non-registration. In several cases, refunds with interest were ordered.

These actions highlight RERA's increasing enforcement of Sections 3 and 4, which mandate project registration and accurate disclosures, and use of Section 63 to penalize non‑compliance with its orders .

Why This Matters for Homebuyers

1. Precedent for redress: Even if only a handful of complainants come forward—as in this case of two buyers—TGRERA's orders apply broadly, setting strong consumer‑friendly precedent.

2. Interest compensation: Buyers are entitled to interest based on SBI MCLR plus an additional 2% (often totaling ~11%), offering financial relief from delays.

3. Strong enforcement: The newly empowered RERA enforcement wing in Telangana now has direct authority to recover dues and enforce such orders quickly, without relying on administrative collectors.

4. Avoiding legal limbo: Projects without RERA registration are at risk of fines and refund orders. Buyers are advised to confirm RERA registration before booking and remain vigilant about deadlines.

Key Takeaways for Homebuyers & Developers

For Homebuyers	For Developers
✅ Verify project’s RERA registration before booking.	⚠️ Ensure full compliance with Sections 3 & 4 before entering sale agreements.
📑 Keep documentation—agreements, payment receipts, communications.	⚖️ Avoid non-delivery and misinformation in marketing; it can lead to penalties and refund orders.
📞 Lodge timely complaints with TGRERA if delays or violations occur.	🏗️ Follow through on timelines and provide regular updates; avoid diversion of funds.

Conclusion

This recent TGRERA ruling reinforces its commitment to consumer rights in the Telangana real estate landscape. Whether it's just two buyers or dozens, RERA is sending a clear message: non-delivery, false promises, and non-registration will not be tolerated. For buyers, the path to justice under RERA is real—and enforceable.