TGRERA orders Jayathri Infra to refund ₹11 lakh with interest

Hyderabad: TGRERA has directed a real estate developer to refund the entire amount paid by a complainant for a commercial unit in its “Western Galaxy” project, along with 10.7% annual interest.The complaint was filed by Kolimala Rupa Chandrika of Kancharapalem, Visakhapatnam, against the company, which has its office at Miyapur.Possession promised by December 2024According to the complaint, Chandrika entered into a memorandum of understanding with the developer on June 4, 2021, to purchase a 200 sq ft commercial space bearing office No. 6/H on the second floor of the Western Galaxy commercial complex at Gopanpally village in Serilingampally mandal of Rangareddy district.She paid the total sale consideration of ₹11 lakh in three instalments. This included ₹1 lakh through UPI on February 5, 2021, ₹7 lakh in cash on June 3, 2021, and another ₹3 lakh through UPI on the same day.The complainant submitted that the developer had assured her that the fully constructed commercial space would be handed over by December 2024. The MOU stipulated that, in the event of a delay, the developer would pay compensation of ₹50 per sq ft per month until possession was delivered.

However, the project remained incomplete and possession was not handed over within the agreed period, she alleged.Refund ordered within 45 daysThe complainant also told the authority that the developer’s office was closed when she attempted to approach it. Repeated efforts to contact the company failed as the phone number provided was inactive, she submitted.Acting under Section 37 of the Real Estate (Regulation and Development) Act, TGRERA directed the developer to refund the entire ₹11 lakh with interest at 10.7% per annum, comprising the current SBI marginal cost of funds-based lending rate of 8.7% plus 2%.The interest will be calculated from the date of the MOU until actual payment. The authority ordered the refund to be made within 45 days from the date of its order.The complaint was disposed of, with both parties directed to bear their own costs. TGRERA said failure to comply with the order would attract action under Section 63 of the Act.