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Telangana RERA Orders Builder to Compensate Buyer for Delayed Possession

The Telangana State Real Estate Regulatory Authority (RERA) has directed a builder to pay interest to a homebuyer due to delays in handing over a flat. As per the sales agreement, possession was supposed to be given by December 2021, but the builder failed to meet the deadline. This led the buyer to file a complaint with RERA, seeking compensation for the delay. Buyer s Complaint and Builder s Response The homebuyer, Kollepara Veera Venkata Satya Vara Prasad, had purchased a flat in Block-II of the Parijatha Pride project. Despite making instalment payments totaling ₹27.50 lakh between October 2020 and November 2021, he did not receive possession as promised. Prasad stated that the delay caused financial strain, as he continued paying home loan EMIs without receiving the flat. During a November 2023 meeting with other buyers, the builder, Parijatha Homes & Developers Pvt. Ltd., assured them that the flat would be delivered by January 31, 2024. The builder also promised to pay Prasad ₹7,500 per month as rent compensation if the delay extended beyond February 28, 2024. The builder defended the delay, citing unforeseen challenges, including the COVID-19 pandemic, labour shortages, and rising material costs. Additionally, the builder claimed that the sales deed from April 17, 2021, indicated that possession had already been delivered, but Prasad could not move in due to the lack of an occupancy certificate. RERA s Decision and Penalties Imposed After reviewing the case, RERA members K Srinivasa Rao and Laxminarayana Jannu ruled in favor of the buyer and issued the following orders: The builder must complete the remaining construction work and hand over the flat within 90 days. Interest at 11.1% per annum must be paid on the amount paid by Prasad, effective from January 1, 2022, until the flat is delivered. The builder must obtain the occupancy certificate at its own expense and provide it to Prasad along with possession. If the builder fails to comply, penalties will be imposed under the Real Estate (Regulation and Development) Act, 2016. RERA s Role in Protecting Homebuyers RERA's intervention highlights the critical role of regulatory bodies in safeguarding the interests of homebuyers. By holding developers accountable for delays, such rulings ensure that buyers receive fair compensation and timely possession. The decision also reinforces the importance of adhering to agreed construction timelines, setting a precedent for future disputes in the real estate sector.