Hyderabad: An investor, Pyreddy Vishwanath Reddy, has recovered Rs 46.1 lakh with interest from the developers of the stalled villa project. He N. Srinivasa Babu and R. had invested in a property under development at Kishtareddypeta, Telangana by Srikanth Reddy but the project could not take off despite the payment.
In a case heard by the Telangana Real Estate Regulatory Authority (TGRERA), it was revealed that the respondents did not register the project with the authority before offering it for sale, in violation of provisions under the Real Estate (Regulation and Development) Act, 2016. Consequently, the defendants were found liable for a penalty of Rs.1,28,903.
The authority directed the developers to refund the full amount of Rs 46.1 lakh to Reddy with interest at the rate of 11.05 per cent per annum from the date of the Memorandum of Understanding (MoU) signed on June 18, 2022. It has to be paid within 30 days with interest.
Additionally, the authority has imposed restrictions on developers, prohibiting them from marketing, selling or offering additional units of the project without proper registration. As per the Real Estate Act, non-compliance will result in additional penalties.