A Hyderabad woman has secured a full refund of ₹79 lakh plus 10.7% interest from Telangana RERA after a builder failed to deliver a 3,600-sq-ft villa worth ₹2.14 crore. According to reports from The Times of India, the woman approached Telangana RERA on August 20, 2026, in an ex-parte case after both the builder and real estate agent failed to appear despite receiving notices. The case involved villa number 85 in Pasumamula Village, Abdullapurmet Mandal, Ranga Reddy, where construction remained unfinished even by August 2026.
The ₹79 lakh refund will be calculated with 10.7% interest per annum from February 5, 2024, until the actual refund date. As reported by The Times of India, based on ET's calculations, assuming the refund was made on August 20, 2026, the interest period would be approximately 2.54 years or 927 days. On the ₹79 lakh paid by Mrs Kumari, an annual interest rate of 10.7% would result in interest of approximately ₹21.47 lakh. The interest rate comprises 8.7% SBI MCLR plus 2%.
Telangana RERA found that the builder had marketed and sold plots and villas as part of an unregistered project, violating Section 3(1) of the RE(R&D) Act, 2016. According to The Times of India, for this violation of non-registration, the builder was directed to pay a penalty of ₹1.03 crore. The authority noted that the sale agreement executed with the woman stated the builder owned agricultural land and obtained HMDA permission to convert it into residential villas, but there was no reference to RERA project registration in the agreement.
The builder had promised completion within six months of the ₹2.14 crore villa booking, with the sale agreement executed on February 5, 2024. As reported by The Times of India, the woman expected delivery in 2025 or the first half of 2026, but construction remained unfinished by August 2026. Pooja Rao Putrevu, Founder of Annex Legal, explained that the homebuyer succeeded primarily due to the builder's failure to obtain RERA registration, unauthorized marketing without statutory permissions, and failure to complete construction within the promised timeline.
Putrevu emphasized that homebuyers must ensure developers comply with statutory obligations and maintain clear documentation. According to The Times of India, she stated that for today's homebuyers, it is essential to have clear paperwork and ensure developers adhere to statutory obligations. The case highlights the importance of RERA registration compliance and timely project completion, with the builder failing to submit any material showing construction progress or provide a definite possession date despite collecting substantial advance payments.
