Hyderabad Builder Penalized Rs 9.96 Lakh for Unregistered Project
Telangana RERA directs Krithika Infra Developers to refund Rs 33.84L to a buyer and imposes Rs 9.96L penalty for selling an unregistered project in Hyderabad.
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The Telangana Real Estate Regulatory Authority (RERA) has directed Krithika Infra Developers, a Hyderabad-based builder, to refund a homebuyer’s payment of Rs 33,84,200 and imposed a penalty of Rs 9.96 lakh for marketing and selling an unregistered real estate project. The order, issued on December 30, 2024, was passed by the RERA bench comprising Justice Dr. N. Satyanarayana (Chairperson), K. Srinivasa Rao (Member), and Laxmi Narayana Jannu (Member).
In October 2021, the complainant entered into an agreement with Krithika Infra Developers to purchase a flat in Bermuda, Hyderabad. A payment of Rs 33,84,200 was made toward the flat. However, the builder failed to deliver the property by the promised deadline of March 2024. Despite repeated assurances from the company’s Managing Director and CEO, no progress was made in construction, and necessary approvals, including RERA registration and loan clearances, were not obtained.
Frustrated by the lack of transparency and delays, the homebuyer canceled the booking and sought a refund. The builder, however, did not initiate the refund process, prompting the complainant to approach Telangana RERA. The complaint sought the return of the invested amount with interest, punitive action against the builder, and criminal proceedings against the company and its executives.
The RERA bench reviewed the project details and agreement, noting that the project spanned 11,418 square meters and involved more than eight units. This exceeded the statutory threshold of 500 square meters and eight units as defined under Section 3(2) of the RERA Act, 2016, making registration mandatory before any sale.
The Authority found Krithika Infra Developers in violation of RERA provisions for advertising, marketing, and selling an unregistered project. A penalty of Rs 9.96 lakh was imposed on the builder for non-compliance. Additionally, the builder was ordered to refund the full payment of Rs 33,84,200 to the complainant, along with interest at an annual rate of 11.05 per cent.
