Telangana RERA orders Builder to Pay Interest for Delayed Flat Handover

The Telangana State Real Estate Regulatory Authority (RERA) has directed a builder to pay interest to a homebuyer for delaying the handover of his flat. The buyer, Kollepara Veera Venkata Satya Vara Prasad, had purchased a flat in Block-II of 'Parijatha Pride' and claimed that despite paying Rs. 27.50 lakh between October 2020 and November 2021, the builder, Parijatha Homes & Developers, failed to deliver the property within the promised timeline. As per the sale deed, possession was due by December 2021.

Prasad stated that the delay caused financial strain as he had to continue paying home loan EMIs without receiving the flat.

During a meeting with other flat buyers on November 10, 2023, the builder committed to handing over the flat by January 31, 2024, and agreed to compensate him with Rs. 7,500 per month in rent if there was any further delay. However, the builder did not fulfill this commitment, prompting Prasad to file a complaint with RERA.

The builder defended the delay, citing uncontrollable factors such as the Covid-19 pandemic, labour shortages, and rising material costs. Additionally, the builder claimed that a registered sale deed executed on April 17, 2021, indicated that possession had been given, and the buyer's inability to move in was due to the pending occupancy certificate.

After reviewing the arguments and evidence, RERA members K. Srinivasa Rao and Laxminarayana Jannu ruled in Prasad's favor. The authority ordered the builder to complete the remaining construction and hand over the flat within 90 days while compensating the buyer for the delay.