The Telangana High Court has directed the Telangana Housing Board to execute and register sale deeds for flat purchasers at various locations within 10 days, temporarily setting aside the board’s demand for interest-related adjustments and penal interest.
A division bench comprising Justice B. Vijaysen Reddy and Justice Gadi Praveen Kumar issued the interim direction while hearing a writ petition filed by the Housing Board’s secretary and another official. The petition challenges an order passed by the National Consumer Disputes Redressal Commission (NCDRC), New Delhi, on June 19, 2025, in execution proceedings.
The court directed the board to complete the registration process without insisting at this stage on adjustments towards delayed-payment interest or demanding penal interest from the purchasers. It also ordered that the NCDRC’s June 19, 2025, order would remain suspended once the sale deeds are executed.
During the hearing, Pottigari Sridhar Reddy, special government counsel appearing for the Housing Board, submitted that the board was prepared to execute the sale deeds if the purchasers paid the entire sale consideration of ₹47.85 lakh for each flat.
The purchasers opposed that condition. Senior counsel Avinash Desai, representing them, relied on a clarification issued by the Supreme Court and argued that interest payable by the Housing Board at six per cent, calculated at ₹16,66,946, should be adjusted against the final sale consideration. According to the submission recorded in the proceedings, the adjustment would mean that the purchasers would instead be entitled to receive approximately ₹4,61,946 from the board.
The dispute involves more than the immediate registration of the properties. It also concerns how delayed-payment interest and contractual penal charges should be accounted for when a public housing authority completes a sale after litigation. The High Court has not finally decided either issue.
The bench left open the Housing Board’s demand for 14 per cent penal interest under Clause 3 of the agreement and the purchasers’ claim that interest should be adjusted in accordance with the Supreme Court’s clarification. The question of delayed-payment interest and its adjustment against the sale consideration will be examined subsequently.
The High Court also took note of the Housing Board’s repeated submissions before the NCDRC that it would comply with the order under challenge. The commission had recorded an undertaking given by the board’s standing counsel in an order dated May 24, 2026.
The matter has been adjourned to November 18. In the interim, the Housing Board is required to execute and register the sale deeds within the 10-day period directed by the High Court, while the unresolved interest claims remain before the court.
