RERA mandates Bharathi Builders to refund buyers with interest for uninitiated Kompally project

The Telangana Real Estate Regulatory Authority (TGRERA) has directed Bharathi Builders Pvt Ltd and its associates to refund the amounts collected from buyers of the proposed “Bharathi’s Lake View Apartments” project at Kompally, along with applicable interest, after finding that the project was never commenced despite substantial payments from purchasers.

The authority noted that several homebuyers had paid money for residential units promised under a pre launch scheme, but construction activity never began and statutory approvals were not obtained.

The respondents in the case include M/s Bharathi Builders Pvt Ltd represented by Mulpary Siva Rama Krishna, along with Sri Drupati Nagaraju, Ashish Kumar Ahuja and Sunil Kumar Ahuja. The authority held that all four fall within the definition of “promoter” under the Real Estate (Regulation and Development) Act and are jointly responsible for the project’s obligations.

The authority observed that the promoters had collected money from buyers without registering the project and directed that the entire amount paid by the complainants be refunded with interest under the provisions of the Act.