RERA directs Krithika Infra Developers to refund ₹54lakh with 10.75% interest

HYDERABAD: The Telangana Real Estate Regulatory Authority (RERA) has ordered Krithika Infra Developers to refund ₹54,26,190 along with 10.75% annual interest to a homebuyer, after finding the promoter guilty of selling flats without mandatory registration and failing to commence construction.

The complaint was filed by an allottee who, in August 2022, booked Flat No. 110 in Block C of the proposed project “Sheshadri’s Silver Oak” at Boduppal village, Medipally mandal, Medchal–Malkajgiri district. The total consideration was agreed at ₹54,26,190, which the buyer paid in full through multiple transactions between August and November 2022.

Promises not kept

According to the complaint, a salesperson and the sales manager assured the buyer that all approvals were in place and construction would begin within six months, with possession promised by December 2024. However, despite receiving the entire sale consideration, the developer neither registered the project with RERA nor initiated any construction activity.

The buyer later discovered that the project had not been registered under Section 3 of the Real Estate (Regulation and Development) Act, 2016, despite the promoter’s claims. In August 2024, the developer issued a cheque for the full refund, but it was dishonoured due to insufficient funds. Subsequent attempts to contact the company failed.

Ex-parte proceedings

RERA noted that Krithika Infra Developers repeatedly failed to appear despite notices and was proceeded against ex-parte on February 4, 2025. The Authority also referred to a similar earlier case against the same developer in 2024, in which penalties were imposed for violations of Sections 3, 4, and 13(1) of the Act.

In the present case, the Authority observed that the complainant was entitled to a refund under Section 18(1)(a) of the Act, which provides for repayment with interest when a promoter fails to deliver possession. The applicable rate, as per Rule 15 of the Telangana Rera Rules, is the State Bank of India’s marginal cost of lending rate (8.75%) plus 2%.

30 days to comply

Directing the promoter to refund the entire amount with 10.75% interest from the date of the Agreement of Sale (November 5, 2022) until repayment, Rera gave Krithika Infra Developers 30 days to comply. The Authority also warned that failure to honour the order would attract penalties under Section 63 of the Act.

The complaint was disposed of with no order as to costs.