Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has directed Emerald Constructions to pay interest to a plot buyer for the delay in developing a project located in Dream City II. The buyer, Sai Prasad had purchased Plot No. 131 in the “L Emerald” venture in 2019.
According to the agreement, the development was supposed to be completed by December 18, 2020. However, even after more than four years, the work still remained unfinished.
RERA ruled that although the physical possession of the plot was handed over, the promised development such as roads, drainage, water connections and other basic infrastructure was not completed.
The petitioner, Sai Prasad, had also asked RERA to order the builder to buy back the plot or pay interest at 24 per cent per annum. The RERA rejected his demand and ruled that the buyer was eligible to get nine per cent interest per annum for the delay period, starting from December 19, 2020 until the development is completed. The builder has been given 90 days to pay the dues.
Emerald Constructions had blamed the delay on problems with layout approvals, objections from the irrigation department and the Covid-19 pandemic. However, RERA said these issues showed the builder had not done proper planning before launching the project.
The RERA also noted that the project’s registration had lapsed in 2020 and asked the builder to re-register it with the authority before selling or marketing any more plots. Failing to do so could lead to penalties under the law.
The complaint has now been closed, with RERA ordering the builder to follow its directions or face further action.
