Telangana High Court directs Housing Board to execute flat sale deeds within 10 days

The Telangana High Court has directed the State Housing Board to execute sale deeds for flat purchasers within 10 days without insisting on adjustments or penal interest. The dispute over payment adjustments and 14 per cent penal interest remains pending.

Legal Correspondence

 

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Hyderabad: A Division Bench of the Telangana High Court comprising Justice B. Vijaysen Reddy and Justice Gadi Praveen Kumar has directed the Telangana State Housing Board (TSHB) to execute sale deeds in favour of flat purchasers within 10 days, without insisting on adjustments or demanding penal interest. The Bench passed the interim directions on October 28 while hearing a writ petition filed by the Telangana Housing Board challenging an order of the National Consumer Disputes Redressal Commission (NCDRC), New Delhi, dated June 19, 2025.

During the hearing, Special Government Pleader Pottigari Sridhar Reddy, submitted that the Housing Board was willing to execute the sale deeds, provided the purchasers paid the entire sale consideration of Rs. 47.85 lakh for each flat. However, Senior Counsel Avinash Desai, appearing for the flat purchasers, opposed the demand. He submitted that the Supreme Court, in its judgment dated May 8, 2023, had clarified that interest at 6 per cent payable to the purchasers under Clause 13 of the agreement, amounting to Rs. 16,66,946, had to be adjusted against the final sale consideration.

After such adjustment, the purchasers would be entitled to receive approximately Rs. 4,61,946 from the Housing Board, he contended. The Bench observed that the Housing Board had repeatedly represented before the NCDRC that it would comply with the order dated June 19, 2025. The Commission had also recorded the undertaking given by the Housing Board’s standing counsel in its order dated May 24, 2026. Taking note of the undertaking and the submissions made by the Special Government Pleader, the Bench directed the Housing Board to execute the sale deeds in favour of the purchasers within 10 days, without insisting on any adjustments or demanding penal interest.

The Bench further ordered that, upon execution of the sale deeds, the operation of the NCDRC’s order dated June 19, 2025, would remain suspended. The dispute concerning the Housing Board’s claim for penal interest at 14 per cent per annum under Clause 3 of the agreement, as against the purchasers’ claim for adjustment in terms of the Supreme Court’s order, will be decided at a later stage. The matter was posted to November 18, 2026.