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TGRERA orders refund of ₹38 lakh to buyer in Sterling Grandeur project dispute

TGRERA orders refund of ₹38 lakh to buyer in Sterling Grandeur project dispute

HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) has directed Sterling Avenues to refund ₹38,97,400 to a homebuyer after finding violations related to advance collection, approvals and project registration in a residential project at Bachupally.

The complaint was filed by K. Mani Babu, who said he booked Flat No.1205 in the "Sterling Grandeur" project after seeing an advertisement near the construction site. The total cost was quoted at ₹71,07,900, and he paid a token of ₹8,700 on August 15, 2021, followed by further instalments, taking total payments to ₹38,97,400.

The complainant alleged that the developer collected advance amounts before obtaining legal rights over the land and prior to statutory approvals. HMDA approval was granted only on July 23, 2022, nearly a year after the initial payment, the complaint stated.


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Slow construction and layout changes disputed

The buyer also alleged slow progress, stating that only two cellar levels and one stilt were completed over 26 months, with overall work below 15%. The developer later proposed changing the flat number, reducing area from 1,385 sq ft to 1,380 sq ft and removing a kitchen garden, which the complainant opposed.

The complaint further alleged that the developer sought fresh HMDA and RERA approvals for the same project instead of extending the existing registration, resulting in two RERA registrations with different timelines and project details.

After citing lack of progress, the buyer sought cancellation and refund in November 2023. The developer allegedly insisted that cancellation would be processed only after resale of the flat and with a 25% deduction, prompting the complaint before the authority.

Authority orders refund, penalty proceedings

RERA directed the respondent to refund ₹38,97,400 within 45 days and warned that failure would attract action under Section 63 of the Real Estate (Regulation and Development) Act, 2016. The authority also ordered examination of dual RERA registrations and initiation of penalty proceedings for violations of Sections 3, 4 and 13(1) of the Act.

The complaint was disposed of with no order as to costs.

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