Telangana RERA Mandates Rs 20 Lakh Refund and Rs 98 Lakh Penalty After Homebuyer Receives Smaller Villa from Builder
A recent ruling by the Telangana Real Estate Regulatory Authority (RERA) has ordered a builder to refund a homebuyer after finding that the builder misrepresented the size of a villa. The case involved a buyer who was promised a villa with a total area of 5,068.96 square feet but later discovered that the actual area was only 3,900 square feet. The authority deemed this misrepresentation a serious violation of the RERA Act.
Details of the Case
The complaint was filed by P. Krishna Reddy, a homebuyer from Old Bowenpally, Hyderabad. Reddy alleged malpractice by a builder based in Chikalguda, represented by Baddam Laxma Reddy. He first learned about the builder’s project, named “Bentley Woods,” through advertisements on social media and physical banners. The project, located in Quthbullapur Mandal, spans approximately 2.7 acres and consists of 44 villas.
Reddy paid a token advance of Rs 20 lakh for the villa on October 12, 2024, which was priced at Rs 3.6 crore. The discrepancy in the villa’s size became apparent when the sale agreement listed the area as 3,900 square feet, significantly less than what was advertised. Reddy claimed he was misled and calculated that he was overcharged by Rs 90 lakh due to the misrepresentation.
Builder’s Defense
The builder contested Reddy’s allegations, arguing that the sale was not based on a precise measurement of the villa’s area. They claimed the figures in the sale agreement were approximate and intended only for reference. The builder maintained that Reddy was aware of the villa’s size and accepted the overall price without objection during negotiations.
Additionally, the builder’s representative stated that the open area referred to in the agreement related to the setback portion of the plot. Concerned about the legality of the project, which lacked RERA registration, Reddy withdrew from the booking and filed a complaint with Telangana RERA.
RERA’s Ruling
On August 24, 2026, Telangana RERA ruled in favor of Reddy. The authority found that the builder could not change the description of the area after the sale agreement was executed. The significant difference between the advertised and actual villa size constituted material misrepresentation under Section 12 of the RERA Act. Consequently, Reddy was entitled to a full refund along with interest.
The authority also penalized the builder for failing to provide required area and charge-wise breakdowns. The builder’s attempt to avoid RERA registration by presenting the project as individual plots was rejected. Telangana RERA noted that the builder only obtained registration after questions were raised about the project, which was inconsistent with how the properties were marketed. The builder was ordered to refund Reddy’s Rs 20 lakh payment and was fined Rs 98 lakh, to be deposited into the TGRERA fund.
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