TGRERA pulls up Hyderabad builder for unilateral cancellation of sale agreement

TGRERA has restrained Ayyanna Infra from selling a flat in its Hyderabad project, Ayyanna Prima, after finding the builder cancelled the sale agreement unilaterally. The Authority rejected the builder’s justification and directed that status quo be maintained until final adjudication

Hyderabad: The Telangana Real Estate Regulatory Authority (TGRERA) has pulled up a city-based developer for unilaterally cancelling a sale agreement and rejected the builder’s claim that the cancellation was due to buyer violating the payment schedule.

In its interim order dated May 2, the Authority restrained M/s Ayyanna Infra Pvt Ltd, developers of the Ayyanna Prima project in Guttala Begumpet, Serilingampally mandal, from selling Flat No. 801, including three car parking spaces and an undivided share of 105 square yards. The builder was directed to maintain status quo on the property and comply with all statutory obligations for project completion.

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The TGRERA was acting on a complaint filed by Adi Vanaja, who alleged that despite having paid Rs 3.45 crore for Flat No. 801 in Ayyanna Prima, along with three car parking spaces and an undivided share of 105 square yards, the builder cancelled the agreement unilaterally via an email dated September 14, 2023, sent to her husband’s email address. Two sale agreements dated January 30, 2021, were submitted to support her claim.

Vanaja disputed the validity of the cancellation and pointed out that no refund had been initiated, not even as per the alleged forfeiture clause. The builder, however, claimed that the buyer had failed to adhere to the payment schedule, and hence the agreement stood cancelled.

The Authority, after reviewing the agreements, observed that they did not contain a specific clause detailing the process for termination. “The purported cancellation email was not directly addressed to the complainant and cannot be considered valid under the law. Therefore, prima facie, the agreement continues to subsist,” the Authority said in its order.

The authority represented by Chairperson Dr. N Satyanarayana and members K. Srinivasa Rao and Laxmi Narayana Jannu, noted that interim protection of the complainant’s rights was warranted, pending final adjudication. It held that any third-party interest created over the flat would seriously prejudice the complainant’s rights.

Accordingly, the respondents were restrained from alienating, transferring, mortgaging, or creating any third-party interest or charge on Flat No. 801 in Ayyanna Prima, along with its associated parking spaces and undivided land share. The builder was also directed to maintain status quo and meet all project-related statutory requirements.