SOURCE :- SIASAT NEWS
Hyderabad: Telangana Real Estate Regulatory Authority (TGRERA) on Saturday, July 4, imposed a fine of Rs 26 lakh on a Hyderabad-based construction firm for selling flats in an unregistered project.
AV Infracon was penlised for selling a flat in its ‘AV’s West Heights’ . The order was passed by TGRERA bench comprising members Laxmi Narayana Jannu and K Srinivasa Rao while disposing of a complaint filed by Galla Ramana Murthy Reddy, a resident of Andhra Pradesh, under the Real Estate (Regulation and Development) Act, 2016.
As per the complaint, Murthy paid Rs 26 lakh to the firm in April 2022 to purchase Flat number 402 in C Block of the proposed residential project ‘AV’s West Heights’. Murthy informed the RERA that the entire amount had been arranged through borrowed funds at an interest of 2 per cent per month.
However, despite receiving the full sale consideration, the construction firm allegedly neither obtained the required statutory approvals nor began construction.
The authority also observed that AV Infracon was served notices along with a show-cause notice regarding the delay. However, the builder failed to appear before the RERA or file any written response. The matter was therefore heard ex parte.
RERA registration mandatory
The authority noted that AV’s West Heights spanned more than 9,300 square metres, thereby making RERA registration mandatory under Section 3 of the Real Estate (Regulation and Development) Act, 2016.
TGRERA also said that the construction firm had mentioned in its agreement with Murthy that the Hyderabad Metropolitan Development Authority(HMDA) and RERA approvals were yet to be obtained for the project. Despite this the builder collected the money from the complainant.
The authority imposed the fine in accordance with section 18 of the TGRERA Act and held that the homebuyer was entitled to withdraw from the project due to the promoter’s failure to obtain approvals, register the project, commence construction and offer possession.
Accordingly, the authority directed AV Infracon to refund Rs 26 lakh along with 10.70 per cent annual interest, calculated from the respective dates of each payment until the date of actual refund, within 45 days from the receipt of the order.
Apart from the refund, the authority also initiated proceedings to impose a penalty on the construction firm under Section 59 of the RERA Act against the builder for violating the mandatory project registration provisions.
The authority also warned that failure to comply with the refund order within the stipulated period would attract further penal action under Section 63 of the Act.
SOURCE : SIASAT
