Telangana RERA orders builder to refund buyer and impose penalty over villa size dispute
A homebuyer who paid Rs 20 lakh for a 5,069 sq ft villa won a Telangana RERA ruling that the builder must refund the advance and face a penalty after the promised area was reduced to about 3,900 sq ft.
Mr P. Krishna Reddy responded to online and banner advertisements for the Bentley Woods gated villa project and paid a Rs 20 lakh token on October 12, 2024 for a unit advertised at 5,068.96 sq ft and priced at Rs 3.6 crore. At the time of signing the sale agreement, the builder re-labelled about 1,170 sq ft as "open space" belonging to the overall development, leaving the villa’s actual built-up area at roughly 3,900 sq ft and effectively overcharging the buyer by around Rs 90 lakh.
The builder denied any misrepresentation, claiming the area figures were indicative only, but Reddy filed a case with Telangana RERA. The authority ruled that the promoter breached the duty of transparency by unilaterally altering the saleable area, constituting a material misrepresentation under the RERA Act. Consequently, the tribunal ordered the refund of the Rs 20 lakh advance with interest and levied a penalty on the builder for non-compliance with RERA regulations.
Why it matters
The ruling reinforces strict disclosure requirements for real-estate promoters and protects buyers from deceptive area claims.
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