RERA Fines Asritha's Group with Rs.3 Lakh for Defaulting on Sale Contract
RERA found that the builder had not followed proper cancellation procedures mentioned in the agreement. They also noted that the construction had not reached the stage that required the next payment, and no notices were sent to the buyers before cancelling, which violated both the agreement and the RERA Act.
Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has held Asritha's Group liable for violations of The Real Estate (Regulation And Development) Act, and served a penalty of Rs.3 lakh for not accepting payments of flats, cancelling the agreements without mandatory notices and threatening to sell the flats to third parties.
The complainants entered into sale agreements in September 2021 for flats 907 and 910 with the developer in Patancheru's Kistareddypet area, for a price of Rs.29.68 lakh each. Each paid an advance of Rs.10 lakh and agreed to pay the rest in instalments based on the progress of the construction.
However, the builder cancelled the agreements without notice, claiming the buyers had defaulted. The complainants have sent multiple notices and rejoinders to the developer and requested to fulfil the contract, but received no response from them.
RERA found that the builder had not followed proper cancellation procedures mentioned in the agreement. They also noted that the construction had not reached the stage that required the next payment, and no notices were sent to the buyers before cancelling, which violated both the agreement and the RERA Act.
The Authority declared the cancellation null and void and directed Asritha's Group to not only pay a penalty of Rs.3 lakhs, but also register the flats in the names of the buyers once payments are made as per the agreement.