TG-RERA orders BVR Infra to refund plot buyers

Property Pulse 

The Telangana Real Estate Regulatory Authority (TG-RERA) has directed BVR Infra Developers to refund ₹10.95 lakh to two plot buyers, along with annual interest of 10.7 per cent, over the sale of a plot in a layout at Kadthal without registration under the real estate regulatory law.

The complaint was filed by M. Sheela and Padma Sriramulu in connection with Plot 28 in SV Golden City-III, a layout comprising 85 plots. Although the project had tentative layout approval from the Directorate of Town and Country Planning (DTCP), it had not been registered with TG-RERA, as required under the Real Estate (Regulation and Development) Act, 2016, according to the case details.

The buyers made payments in five instalments between August and December 2022. An agreement was subsequently executed on February 13, 2024. The complainants approached the authority after the developer allegedly failed to complete the transaction and hand over the plot as agreed.

TG-RERA directed the developer to refund the amount within 30 days of receiving the order. Interest is payable on each instalment at 10.7 per cent per annum, calculated from the respective date of payment until the refund is made.

The authority has also initiated penalty proceedings under Section 59 of the Act for the alleged violation of Section 3, which prohibits promoters from advertising, marketing, booking or selling plots, apartments or buildings in a real estate project without registration, where registration is mandatory. Further action under Section 63 may follow in the event of non-compliance with the authority's directions.

The case highlights the importance of checking both layout approvals and TG-RERA registration before purchasing plots. A tentative DTCP layout approval does not, by itself, establish compliance with the separate registration requirements under RERA.

Key Compliance.

• RERA registration is mandatory where applicable.
• DTCP approval does not replace registration.
• Buyers paid through five instalments.
• Interest applies from each payment date.
• Refund deadline is 30 days after receipt.
• Non-compliance may trigger further regulatory action.