Builder Ordered to Refund 62 Homebuyers With 11% Interest in Telangana RERA Verdict
Builder Ordered to Refund 62 Homebuyers With 11% Interest in Telangana RERA Verdict
Developer penalised Rs.14.9 lakh for executing sales in non-registered project and delaying possession by over 3 years.
In a landmark order dated May 16, 2025, the Telangana Real Estate Regulatory Authority (TGRERA) has directed the developer of ‘Aura Velimala Phase 1’ in Sangareddy to refund amounts paid by 62 homebuyers with 11% interest per annum, after the builder failed to deliver possession and operated without RERA registration.
The 7,300 sq.m. project was never registered under RERA, despite statutory requirements under Sections 3 and 4 of the RERA Act, which mandate registration for projects exceeding 500 sq.m. or more than 8 units. The builder, despite receiving funds between 2021 and 2023, completed only 20% of the project by June 2024, long past the promised December 2023 possession date.
TGRERA found that the builder diverted funds to other projects and provided vague responses to buyer concerns. Despite multiple reminders and absence of a clear construction roadmap, the builder failed to show commitment or progress. Citing Section 18(1)(a), TGRERA upheld the buyers’ right to full refunds with interest.
TGRERA also imposed a penalty of ₹14.9 lakh on the builder for violating RERA norms and executing unregistered sale agreements. If the builder fails to refund within 30 days, further penalties under Section 63 of the Act will apply.
This case marks a strong stance by TGRERA against unregistered and delayed projects, with growing calls for imposing full 5% project cost penalties in future to deter such violations more effectively.
