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Telangana RERA rejects homebuyer’s interest claim over ₹62.5 lakh refund, says buyer cannot dictate sale deed format
Hyderabad: TG RERA rejects buyer’s interest claim on ₹62.5 lakh refund, ruling no violation by developer and no mandate for a fixed sale deed format under RERA
The Telangana Real Estate Regulatory Authority (TG RERA) dismissed a homebuyer’s complaint seeking interest on ₹62.5 lakh paid for an apartment, which the buyer cancelled after the developer refused to amend the sale deed. TG RERA stated that a buyer cannot insist on a specific sale deed format because neither the Real Estate (Regulation and Development) Act, 2016, nor the Telangana RE(R&D) Rules, 2017, mandate such a format.
The buyer withdrew from the transaction, claiming the developer’s refusal forced the decision, and sought a full refund with interest. During the proceedings, the developer refunded the full ₹62.5 lakh but contested the interest claim and denied any wrongdoing. TG RERA observed that the dispute primarily revolved around differences in the drafting of the sale deed rather than any proven legal violation, stating: “Neither the RE(R&D) Act, 2016, nor the Telangana RE(R&D) Rules, 2017, prescribe any mandatory or uniform format for a sale deed.”
“In the absence of any established violation of the provisions of the Real Estate (Regulation and Development) Act, 2016, and in the absence of proof that the promoter failed to discharge any statutory obligation, this Authority is of the considered view that the Complainant is not entitled to the reliefs sought,” the order dated March 13 said.
Also Read: Bengaluru Development Authority is a ‘promoter’; RERA provisions apply, Karnataka Tribunal upholds KRERA order
The case
The case relates to a homebuyer who booked a flat in a Hyderabad residential project in 2024 and paid over ₹62.5 lakh, which is more than 65% of the total consideration of about ₹93 lakh. The dispute arose when the developer shared a draft sale deed ahead of registration.
“The promoter’s staff provided a draft copy of the Sale Deed via email for verification and requested the Complainant to communicate any required corrections. Upon scrutiny of the draft sale deed, the complainant noticed several omissions that were required to be incorporated in accordance with RERA and the registration rules,” the order mentioned.
The buyer objected to several aspects of the draft, including alleged omissions regarding title documents, parking details, and TDS references, and other particulars. He sought revisions before proceeding with the final payment and registration.
However, the developer maintained that the draft sale deed complied with applicable laws and refused to make the requested changes. “The staff refused to incorporate the omissions and insisted that the sale deed prepared by the promoter was final and non-negotiable, directing the buyers either to accept it as is or to withdraw from the purchase,” the order said.
The buyer subsequently withdrew from the transaction, claiming he was compelled to do so due to the developer’s refusal, and sought a full refund, including interest.
During the proceedings, the developer refunded the entire ₹62.5 lakh to the buyer, though it contested the claim for interest and denied any wrongdoing.
Also Read: Telangana RERA fines developer ₹14.9 lakh for failing to register project, asks realtor to refund money to buyers
No statutory mandate exists for a specific sale deed format
TG RERA observed that the dispute centred largely on differences over the drafting of the sale deed rather than any proven violation of law.
The Authority clarified that while RERA provides a model format for an agreement for sale, there is no prescribed or mandatory format for executing a sale deed under the Act or the Telangana Rules.
“At the outset, this Authority finds it necessary to observe that neither the RE(R&D) Act, 2016, nor the Telangana RE(R&D) Rules, 2017, prescribe any mandatory or uniform format for a sale deed. The statutory framework under RERA provides a model format only for the agreement for sale, with the object of ensuring transparency at the pre-conveyance stage,” the authority said in its order.
TG RERA held that the contents of a sale deed are governed by the agreement between the parties and general registration laws, and an allottee cannot insist on including clauses or formats that are not legally required. “The sale deed, being an instrument of conveyance, is governed primarily by the applicable laws, and the contractual understanding between the parties,” it said.
The authority further noted that the buyer’s objections were largely related to drafting preferences and did not establish any statutory non-compliance by the developer.
“Accordingly, this Authority holds that the complaint is devoid of merit and is liable to be dismissed,” the authority said.
An email has been sent to the developer. The story will be updated if a response is received.
