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The Telangana Real Estate Regulatory Authority (TG-RERA) has ordered Vasavi Realtors LLP to compensate buyers for delays in handing over flats at the Vasavi Lake City project in Hafeezpet, Hyderabad. The developer must pay 10.8 % annual interest from March 1, 2024, until possession is given to 23 homebuyers, many of whom paid around INR 1 crore each. Complaints included late possession, lack of communication, and changes in flat specifications. The regulator rejected claims that Covid-19 was responsible, as agreements were signed after the pandemic. TG-RERA also asked the builder to complete the project within statutory timelines.
The Telangana Real Estate Regulatory Authority has instructed Vasavi Realtors LLP to compensate homebuyers for delays in its Vasavi Lake City project located in Hafeezpet, Hyderabad. The authority ruled that 23 buyers are entitled to receive interest at 10.8 % annually on their payments, effective from March of last year until the flats are handed over. Advertisement
Each of these buyers had invested nearly INR 1 crore, with contributions of about INR 70 lakh made through bank transfers or cheques and the remaining INR 38 lakh through housing loans. Buyers complained not only of delays in possession but also of reduced balcony and utility space compared to what was initially promised. They also highlighted the financial stress of managing both EMIs and rental expenses during the prolonged wait.
The developer argued that delays were the result of the Covid-19 pandemic, labour shortages, and supply disruptions. TG-RERA rejected this reasoning, stating that the agreements were signed after the pandemic and the developer was fully aware of its obligations. The regulator said that contractual deadlines, including the grace period, set February 28, 2024, as the final possession date. Accordingly, interest payments have been mandated from March 1, 2024.
As per the order, Vasavi Realtors must clear arrears within 60 days. From then on, interest must be paid monthly by the 10th of each month until possession is granted. The regulator also reminded that any charges levied on buyers for delayed payments must be supported with proper documentation showing progress-linked milestones.
The authority further directed the builder to complete the project without any additional extensions. Buyers have also been informed of their option to seek further compensation through the Adjudicating Officer by filing "Form N." In case of future default, proceedings under Section 63 of the RERA Act, 2016, will be initiated.
This order comes against the backdrop of repeated delays at Vasavi Lake City. The project was initially targeted for completion by August 2023 but has missed multiple revised deadlines, including February 2024, February 2025, and June 2025. Reports earlier this year noted that more than 1,800 families were still waiting for possession, despite paying significant amounts in advance.
TG-RERA has been increasingly active in such cases. In recent months, the regulator has ordered refunds with interest in several delayed projects and announced the creation of an enforcement wing to ensure timely compliance. These measures reflect its stronger approach toward protecting buyers and enforcing accountability in Telangana's real estate market.
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