RERA Orders Builder to Refund Money to Six Buyers for Delay
R Homes Realtors Global LLP will refund buyers over Rs 80 lakh for violating RERA rules and causing project delays.
Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) ordered R Homes Realtors Global LLP to refund the money paid by six individuals, who invested in a residential project at Beeramguda, for the delay in the completion of the project and the violation of RERA rules.
The buyers had booked flats in Jai Vasavi’s ORR Heights in 2021. They paid over Rs 80 lakh to the builder, who promised that the construction would begin by January 2022 and the flats would be handed over within 30 months of receiving approvals.
Even after more than two years, construction had barely begun, with only some digging work completed. The buyers said that the builder kept changing the building plan from five floors (G+5) to nine floors (G+9) without informing them or obtaining their consent.
RERA found that the builder had collected money and signed agreements with the buyers before registering the project with RERA or obtaining approvals from HMDA, which is a violation of Section 3 of the Real Estate (Regulation and Development) Act. Despite repeated notices from the RERA, the builder did not respond and was declared absent for the hearings.
After reviewing the documents, RERA ruled that the buyers were entitled to cancel their bookings and receive a refund. However, the RERA stated that since final approval was granted only in September 2022 and the builder still has time until September 2025 to complete the project, the buyers would not be eligible for interest on the refunded amount.
RERA directed the builder to pay a penalty of Rs 6.06 lakh to the RERA fund within 30 days and to refund the buyers' money within 90 days.
