The Telangana Real Estate Regulatory Authority (TGRERA) has ordered Aliens Developers to complete the stalled Aliens Space Station project in Tellapur and deliver the flat to the buyer, Ganapathi P Gorekar, without further delay. In addition to completing the project, TGRERA has mandated the developers to pay interest at a rate of 10.95% per annum for the delay in possession, starting from December 2017, excluding the Covid-19 waiver period, until the flat is handed over.
Gorekar had initially booked a flat in the Aliens Space Station project in 2012. Due to significant delays, an agreement of sale was signed on February 17, 2016, for ₹67 lakh. By July 2016, Gorekar had already paid ₹63.7 lakh for the flat and an additional ₹4.18 lakh in taxes, leaving only a small balance to be cleared upon possession. Despite the developers’ commitment to deliver the flat by December 2017, construction only progressed to the structural frame stage, with no finishing work done to date. Repeated assurances from Aliens Developers over the past five years have failed to result in any substantial progress. In their defense, Aliens Developers cited a series of challenges, including the 2008 global economic crisis, political instability during the bifurcation of Andhra Pradesh, financial and technical difficulties, and the impact of the Covid-19 pandemic. The developers stated that they had prioritized employee welfare during the crisis, which caused further setbacks. To revive the project, they secured ₹280 crore from investors and an additional ₹52 crore from the SWAMIH Investment Fund I, a government-backed initiative aimed at supporting stalled residential projects. Despite these challenges, Aliens Developers have assured Gorekar that the flat will be delivered at the original price of ₹67 lakh, despite similar flats now being priced at ₹1.45 crore.
TGRERA found Aliens Developers in breach of their contractual obligations under the Real Estate (Regulation and Development) Act and ordered them to pay the accrued interest to Gorekar within 90 days. The developers were also instructed to continue paying interest for any future delays, which will accrue every three months until possession is delivered. The interest will continue until the issuance of the occupancy certificate or a partial occupancy certificate for the relevant tower. TGRERA emphasized the need for Aliens Developers to expedite construction and meet the agreed-upon timeline, underscoring the importance of complying with regulatory and contractual obligations. This ruling serves as a significant reminder of the importance of timely project completion and the legal recourse available to homebuyers in case of delays in real estate transactions.
