Hyderabad Kompally Homebuyers to Receive Refunds With 10.7% Interest
The Telangana Real Estate Regulatory Authority (TGRERA) has directed the realty firm and other parties linked to Bharathi’s Lake View apartments in Kompally to refund the entire amounts paid by 12 homebuyers, along with 10.7% annual interest.
The orders were issued on August 25 in two common orders covering 12 complaints. TGRERA directed the builder, its partners and subsequent parties involved in the project to jointly and severally complete the refunds within 60 days. The interest will be calculated from the date of each payment until the actual refund. The rate is based on the State Bank of India MCLR plus 2% under Rule 15 of the Telangana Real Estate Rules, 2017. The dispute concerns Lake View apartments, earlier known as Lake View Towers, proposed in Kompally village of Medchal-Malkajgiri district. The buyers said they entered into MoUs with the developers in 2021, with possession promised within 24 months and an additional six-month grace period.
According to the homebuyers, the promoter failed to obtain the required HMDA approvals and RERA registration and did not commence construction. They also alleged that a significant portion of the project land was later sold. The builders and their partners did not submit replies in the proceedings, resulting in the cases being heard ex parte. Sunil Kumar Ahuja and Ashish Kumar Ahuja argued that they were subsequent purchasers of the land and had no contractual relationship with the original buyers. TGRERA rejected the argument and held that their involvement brought them within the definition of a promoter under the RERA Act.
The authority noted that Ashish had joined Siva Rama Krishna to form Sree Bharati Builders in February 2024 with the objective of completing the project. It also referred to around ₹5.3 crore paid towards HMDA approval charges. TGRERA further cited a 2024 term sheet submitted by Sunil proposing completion of the project. The authority did not impose additional penalties in the latest orders. It noted that Bharati Builders had already been declared a defaulter promoter and had faced a ₹3.5 crore penalty, along with another ₹1.1 crore penalty for marketing an unregistered project. The ruling provides financial relief to the 12 affected homebuyers and reinforces the responsibility of developers and parties involved in stalled real estate projects to address buyer claims in accordance with regulatory requirements.
