E-Paper
Telangana RERA upholds homebuyers’ rights despite unregistered sale agreements in delayed Hyderabad project
Hyderabad real estate: The Telangana RERA has ruled that homebuyers cannot be denied allottee status because registered sale agreements were not executed
The Telangana RERA has ruled that homebuyers in a delayed Hyderabad project cannot be denied allottee status merely because registered sale agreements were not executed, provided they had paid substantial amounts and were allotted flats. The authority also directed the developer to complete the project in all respects strictly in accordance with the sanctioned plan.
The order came in a batch of complaints filed by buyers in the Beccun Lifestyle project at Kompally in Hyderabad, developed by Beccun Infrastructure Limited.
“The Respondent shall complete the construction of the project Beccun Life Style in all respects, strictly in accordance with the sanctioned plan. The Respondent shall, within thirty (30) days, communicate a clear, phase-wise and time-bound schedule for completion of the project to all concerned allottees,” the order said.
“In respect of allottees who have been allotted units in floors constructed without sanctioned approval, the Respondent shall, within thirty (30) days, offer alternate units of equivalent area, configuration, and value within the sanctioned portion of the project, without any additional cost. The concerned allottees shall communicate their acceptance or otherwise within fifteen (15) days of such offer. In the event that no alternate unit is available, or the allottee does not accept the offered unit, the Respondent shall refund the entire amount paid,” it further said.
The case
The complainants told the authority that they had booked flats in the project between 2020 and 2022, based on the developer's assurances that construction would be completed within 2 to 3 years and that possession would be handed over accordingly.
“It is the consistent grievance of the Complainants that, despite the lapse of the promised completion period and passage of more than four to five years from the dates of purchase in several cases, the Respondent has failed to complete construction of the project and has not handed over possession of the allotted flats. Construction activity in the project has remained extremely slow, irregular, and in several blocks incomplete, with no clear or reliable timeline being communicated to the allottees,” the order noted.
Some complainants also sought refunds after losing confidence in the project, but claimed the developer made no refunds despite assurances.
The developer argued before the authority that some complainants could not be treated as ‘allottees’ because no formally executed agreements for sale existed between the parties.refused to issue
“It is specifically contended that in several cases, the Agreements of Sale filed by the Complainants are either incomplete, unsigned, or not legally valid, and therefore cannot be relied upon. In certain matters, the Respondent submits that the Complainants are not 'allottees' but have entered into Memoranda of Understanding as investors, and as such, the disputes are of a civil and contractual nature, falling outside the jurisdiction of this Authority and requiring adjudication by the competent Civil Court,” the developer told the authority.
The order
Rejecting the developer’s objections, the Telangana RERA held that the complainants qualified as allottees under Section 2(d) of the RERA Act because they had paid substantial amounts and had been allotted specific flats in the project.
“The Respondent, however, has sought to contend that in the absence of duly executed Agreements of Sale signed by both parties, the Complainants cannot be treated as allottees. This contention cannot be accepted. The issuance of receipts, acknowledgement of payments, and allotment of specific units clearly establish the existence of a transaction and the intention to transfer such units in favour of the Complainants,” the authority observed while passing the order.
The authority also noted that payment receipts, booking forms and allotment confirmations established the existence of transactions and the intention to transfer the units to the complainants, even if registered agreements for sale had not been executed.
“The contention of the Respondent that the disputes are civil in nature and ought to be adjudicated by a Civil Court is also untenable. The RE(R&D) Act is a special legislation enacted to protect the interests of homebuyers, and the jurisdiction of this Authority cannot be ousted merely by characterising the dispute as contractual, when the allegations relate to delay in completion, non-delivery of possession, and other violations of the RE(R&D) Act,” the order said.
The authority said the promoter remained bound by its obligations under Section 11(4)(a) of the RERA Act to complete the project in line with sanctioned plans and agreed timelines.
“The Agreements for Sale and representations made at the time of booking consistently indicated a committed timeline of approximately 36 months for completion and delivery of possession. These commitments are not mere private assurances but acquire statutory significance under the Act, particularly in light of the obligations cast upon the promoter under Section 11(4)(a) to develop the project in accordance with sanctioned plans and agreed timelines,” the authority said.
A list of queries has been sent to the real estate developer. The copy will be updated if a response is received.
