TG RERA builder refund: A homebuyer in Telangana has won a major relief after waiting around three years for her flat. The Telangana Real Estate Regulatory Authority (TG RERA) has ordered the builder to return her full payment of Rs 14.17 lakh with interest.
The order was passed in Complaint No. 56 of 2026 on August 24, 2026. TG RERA found that the project had not moved ahead properly and the builder had also failed to get the required approvals. The buyer had booked a 3 BHK flat of 1,575 sq ft in the Aura-02 (Velimela) project. The total price of the flat was Rs 56.70 lakh. She had already paid Rs 14.17 lakh to the promoter.
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Builder Did Not Give Possession After 36 Months
The buyer said that even after 36 months from the agreement, there was no completed flat and no possession. She also claimed that the builder stopped answering her calls and did not respond to her efforts to contact him. The agreement allowed her to ask for a refund after 36 months. She therefore approached TG RERA and asked for the money she had paid along with interest.
The promoter didn’t appear before the authority even after notices were sent through different methods. Because of this, TG RERA went ahead with the case without the promoter’s presence.
The authority also noted that the same promoter had faced earlier cases linked to the project. In previous proceedings, TG RERA had found violations related to the mandatory registration requirements under Sections 3 and 4 of the RERA Act. The promoter had also been declared a “defaulter.” Official TG RERA records show earlier orders concerning the Aura Velimela projects and similar violations.
TG RERA Orders Full Refund with Interest
After looking at the case, TG RERA said the promoter had not completed the project or handed over the flat. It also found that required approvals had not been obtained and the project had effectively been abandoned.
Under Section 18(1)(a) of RERA, a homebuyer can withdraw from a project when the promoter fails to complete it or give possession as promised and can seek a refund with interest. TG RERA ordered the builder to pay Rs 14,17,500 along with interest at SBI’s MCLR plus 2% per annum. The interest is to be calculated from the respective dates when the buyer made the payments until the full amount is recovered.
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“The Complainant is entitled to refund of Rs 14,17,500 together with interest at the rate prescribed under Rule 15 of the Telangana Real Estate (Regulation and Development) Rules, 2017, namely the State Bank of India’s Marginal Cost of Lending Rate (MCLR) plus 2 percent per annum, calculated from the respective dates of payments made until full and final realisation of the amount,” TG RERA said in the order.
The builder was given 30 days to make the payment. Restrictions against the promoter also remain in place, including limits on advertising, marketing, booking and selling units until earlier orders are followed.
What Homebuyers Should Do if A Builder Stops Responding
Homebuyers should keep their agreement, payment receipts, emails, letters and other communication records safely. Checking the builder’s registration and past RERA cases can also be important before taking legal action.
Lawyers quoted in the case said buyers should record every attempt to contact the builder. This can include unanswered calls and letters sent to the builder’s office and registered address.
“Beyond the agreement of sale and payment receipts, buyers should also document every attempt at communication, including unanswered calls or letters sent to both the builder’s office and registered address, since this Authority specifically noted the builder’s deliberate refusal to respond as part of its reasoning to proceed ex-parte and grant relief,” said Amitraj Kaushal, Advocate, Supreme Court.
