Hyderabad: The Telangana Real Estate Regulatory Authority (RERA) has ruled against Vasavi Realtors LLP for failing to deliver flats on time in the Vasavi Lake City–West project located in Hafeezpet. The builder must pay an annual interest of 10.70% to buyers from March 1, 2024, until they receive possession of their homes.
Vasavi Realtors LLP and its partners, Vijay Kumar Erram and Kande Ramesh, faced numerous complaints from buyers. The complaints were about delays and contract breaches at the Vasavi Lake City–West apartments on Manjeera Pipeline Road.
Around 30 buyers, including Anasuya, Sushila Nunna, and Ravikiran Nunna, signed sale agreements in October 2021. They expected their flats by August 31, 2023. However, the builder did not meet this deadline. Buyers, who had paid almost the full amount, cited financial mismanagement and planning issues, causing them financial stress.
Vasavi Realtors defended themselves by blaming the Covid-19 pandemic for disrupting construction as workers returned home. They argued their contracts allowed for delays due to unforeseen circumstances, such as the pandemic.
RERA reviewed the case and found Vasavi Realtors should have completed the project by February 28, 2024, even with the grace period. The authority dismissed the pandemic as a valid excuse for further delays since agreements were made after the pandemic’s peak.
RERA decided that buyers staying in the project deserve compensation. Vasavi Realtors LLP must pay 10.70% interest per year on the amounts from March 1, 2024, until the flats are handed over. This interest covers the delay period as per Section 18 of the RERA Act. Buyers can also seek additional compensation through the Adjudicating Officer.
