The Telangana Real Estate Regulatory Authority (TGRERA) has directed Sensation Vijetha Infra Developers to refund a buyer and also imposed a penalty of 2.26 lakh for failing to complete a project on time and not registering it with the authority.
In her complaint, G Swetha said an MoU was signed with the company in March 2020 for buying a commercial space (250 sq ft) in Sensation Vijetha Mall. But as the company failed to begin construction, they were required to refund the amount with 15% interest as per the MoU.
The developers acknowledged the MoU and Swetha’s investment, but cited internal disputes and legal issues with landowners for not proceeding with the project. They expressed willingness to refund the Rs 10,00,000 with interest as directed by TGRERA.But during the hearing, Swetha asserted she had paid an additional 3,50,000 in cash, totalling 13,50,000, although no receipt was provided. Despite presenting WhatsApp chat as evidence, TGRERA determined there was insufficient proof as the respondent did not admit to receiving it.
TGRERA held that the developers had transferred 7,50,000 and the remaining 2,50,000 was still owed. It also highlighted that the developers did not obtain permissions or register the project, violating Sections 3 and 4 of the Real Estate (Regulation and Development) Act, 2016. They also found that the developers advertised and sold property without registration, warranting penalties under Sections 59 and 60 of the Act.
While directing the company to refund the remaining money with interest, it also imposed a penalty of 2,26,379 – to be paid in 30 days – for failing to register the project.
The developer was instructed to register the project with TGRERA after obtaining permissions and till then not to advertise or sell any plots or units in the project.
Both the parties can file an appeal with the Telangana Real Estate Appellate Tribunal within 60 days if aggrieved by this decision.
