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Hyderabad: Telangana Real Estate Regulatory Authority (TG RERA) has directed Hyderabad-based Sukhii LLP to refund Rs 1.04 crore to a buyer, stating that the firm cannot impose Goods and Services Tax (GST) on a customer who has opted out.

The authority asked the firm to refund the loan with an interest rate of 10.7 per cent in 45 days. The case was filed by Vemulapalli Sai Vasanthi and Ghattamaneni Venkat Sai Maithreya against Sukhii LLP, which had booked apartment number 510 in the Sree Sumeru residential project at Uppal Bhagayath.

The apartment, measuring 1,695 square feet with two car parking spaces, was booked in December 2022 and the agreement for sale was executed in February 2023.

According to the agreement, the developer had undertaken to complete construction, obtain the occupancy certificate (OC) and hand over possession with registration by March 31, 2025, with a grace period up to June 30, 2025. The buyer paid Rs 1,04,87,870, nearly 95 per cent of the total sale consideration.

Project remains incomplete

Despite the expiry of the deadline for completing the project, it remained incomplete. The complainant informed the TG RERA that several promised amenities, including the clubhouse, gymnasium, landscaped areas, children’s play area and internal roads, were yet to be completed.

The project had also not obtained the OC, preventing registration and possession.

The customer alleged that repeated requests for a completion deadline was unanswered, while the developer failed to provide any assurance regarding the project’s completion.

Buyers seek refund due to delay

Following the delay in handing over the flats, buyer wrote an email in July 2025 and sought a refund, along with the interest from the builder. In September 2025, the customer conveyed his wish to opt out of the project and sought a refund of the entire amount.

According to the complaint, the construction firm informed the customer that they could opt out of the project after paying the GST amount.

GST can’t be imposed if project is incomplete

After hearing the complaint, the TGRERA said that represetatives from the construction firm appeared only once during the proceedings. Since no written counter or explanation was filed, the authority proceeded ex parte and decided the matter based on the evidence placed by the complainants.

Invoking Section 18(1) of the  Real Estate (Regulation and Development) Act, 2016, TG RERA held that once a promoter fails to hand over possession within the agreed timeline, and the allottee chooses to withdraw, the buyer becomes entitled to a full refund along with interest.

The TG RERA ordered that a promoter who has defaulted can’t impose unilateral deductions such as booking charges, GST or any other arbitrary amounts, adding that it would defeat the consumer-protection objective of the RERA Act.