Builder promised 5,069 sq ft, delivered 3,900; RERA orders refund, Rs 98 lakh penalty
Telangana RERA condemned the use of such tactics by the builder, stating that the alleged conduct amounted to cheating, violated Section 3 of the RE(R&D) Act and made the builder liable for a penalty.
A Telangana RERA ruling has ordered a builder to refund Rs 98 lakh to a homebuyer who discovered that the villa they purchased was significantly smaller than advertised. The buyer, P. Krishna Reddy, had paid a token down payment for a villa in the Bentleigh Woods project, but upon reviewing the sale agreement, realized the villa's actual size was 3,900 sq. ft. compared to the advertised 5,068.96 sq. ft.
The RERA authority found that the builder's representation of the villa's size amounted to a material misrepresentation, as buyers had paid for a substantially larger villa and later discovered the actual property was much smaller. The ruling also imposed a penalty on the builder for failing to provide the required area and charge-wise breakdown under Telangana RERA Rules, highlighting the builder's failure to disclose the disparity in villa sizes.
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