Telangana RERA Upholds Homebuyers' Rights Despite Unregistered Sale Agreements in Delayed Hyderabad Project

Hyderabad, May 9: Telangana RERA has ruled that homebuyers cannot be denied allottee status because registered sale agreements were not executed, provided they paid substantial amounts and were allotted flats. The authority directed the developer to complete the project strictly in accordance with the sanctioned plan.

Case Background

The order came in a batch of complaints filed by buyers in the Beccun Lifestyle project at Kompally, Hyderabad, developed by Beccun Infrastructure Limited. The complainants had booked flats between 2020 and 2022, based on assurances that construction would be completed within 2 to 3 years. Despite 4-5 years passing, the developer failed to complete the project or hand over possession.

Developer's Argument Rejected

The developer argued that some complainants could not be treated as 'allottees' because no formally executed agreements for sale existed. The Telangana RERA rejected this contention, stating that payment receipts, booking forms and allotment confirmations establish the existence of transactions and the intention to transfer units to complainants.

RERA Order on Project Completion

The authority directed the developer to complete the project in all respects strictly in accordance with the sanctioned plan. Within 30 days, the developer must communicate a clear, phase-wise schedule for completion to all allottees. For allottees in floors constructed without sanctioned approval, the developer must offer alternate units of equivalent area within the sanctioned portion at no additional cost.

Refund Option

If no alternate unit is available or the allottee does not accept the offered unit, the developer shall refund the entire amount paid. The authority also noted that the promoter remains 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 of approximately 36 months.