Aditya Capitol Heights Builder Cannot Retroactively Deny Pre-EMI Benefit: Telangana RERA

The Telangana Real Estate Regulatory Authority has held that Aditya Construction Company Pvt. Ltd. cannot deny homebuyers in its Aditya Capitol Heights project the benefit of a Pre-EMI scheme after incorporating it into the sale agreement and acting on it by making payments.

“Having accepted the Complainants under the scheme, executed the Agreement of Sale incorporating its terms, and made actual Pre-EMI payments thereunder, the Respondent is estopped from now asserting that the Complainants were never eligible for the scheme. The plea of retrospective disqualification raised by the Respondent is accordingly rejected as contrary to law and inconsistent with the Respondent's own conduct.”, the authority held.

Chairperson Dr. N. Satyanarayana, IAS (Retd.), Judicial Member K. Srinivasa Rao, and Technical Member Laxmi Narayana Jannu partly allowed a complaint by homebuyers Anuradha Konapala and Santha Rao Jinaga against Aditya Construction Company Pvt. Ltd., directing reimbursement of Pre-EMI amounts borne by the complainants up to August 26, 2022.

The dispute concerned Flat No. 906-A in the developer's Aditya Capitol Heights project in Hafeezpet, Hyderabad, booked for ₹76.03 lakh under a Pre-EMI scheme under which the builder agreed to bear the interest component of the buyers' housing loan during construction.

The homebuyers said the developer paid about ₹1.99 lakh in Pre-EMIs between May 2017 and February 2018 before discontinuing payments, later claiming that they had lost eligibility for the scheme due to delayed payments and loan disbursement defaults.

The developer also argued that the complaint was not maintainable because the buyers had already approached the Telangana State Consumer Disputes Redressal Commission over the same dispute.

Rejecting that objection, the Authority held that remedies under consumer law and RERA are concurrent and independent.

On merits, the Authority found that the builder could not retrospectively disqualify the homebuyers from the Pre-EMI scheme after accepting them under it, incorporating the arrangement into the Agreement of Sale, and making payments under the scheme.

The Authority accordingly directed the developer to reimburse the Pre-EMI amounts borne by the complainants up to August 26, 2022.

However, it refused to award separate interest on the unpaid Pre-EMI dues.

“Since no provision under the RE(R&D) Act, and no clause in the Agreement of Sale, provides for the payment of interest on unpaid Pre-EMI dues as a distinct and enforceable head of relief, this Authority is not in a position to grant such interest. The prayer for interest on Pre-EMI dues is accordingly dismissed. The Respondent remains liable only to reimburse the principal Pre-EMI amounts actually paid by the Complainants up to 26.08.2022, as directed above, without any addition of interest thereon.”, the authority observed. 

For Complainants (Anuradha Konapala and Santha Rao Jinaga): Complainants appeared in person.

For Respondent (Aditya Construction Company Pvt. Ltd.): Advocates P.V. Aruna Kumari and others.