In a significant ruling reinforcing homebuyer protection, Telangana RERA has strongly criticised developers who alter possession timelines after collecting substantial amounts from buyers. Calling such agreements “one-sided, unfair, and unreasonable,” the authority reaffirmed the core objective of the Real Estate (Regulation and Development) Act, 2016, restoring balance, transparency, and accountability in real estate transactions.
The order was passed by a RERA bench led by Chairperson Dr. N. Satyanarayana, who observed that buyers often accept revised possession dates not out of free choice, but due to a clear power imbalance between developers and individual purchasers.
Table of Contents
Buyers Forced to Accept Delays Due to Unequal Bargaining Power
Telangana RERA acknowledged a long-standing industry reality. Once buyers have paid a significant portion of the property value, their ability to negotiate diminishes sharply. Faced with sunk costs, ongoing EMIs, and prolonged uncertainty, many buyers feel compelled to sign amended agreements extending possession timelines.
The authority noted that such consent cannot be treated as genuine when it arises from financial pressure rather than mutual agreement. This recognition marks an important shift in how regulatory bodies interpret revised agreements under RERA.
Case Background: A Nearly Nine-Year Wait for Possession
The ruling arose from a complaint filed by Rizvana Begum and Mohammed Ibrahim against Pacifica Construction Pvt. Ltd., the developer of the Aavas Hyderabad project.
Key timeline details:
- December 2016: Flat booked with a promised possession period of 36 months
Expected delivery by 26 December 2019 - January 2019: Sale agreement executed extending possession to 60 months
Revised deadline of 3 January 2024 - January 2024: Possession still not delivered
By the time the matter was adjudicated, the buyers had faced a delay of nearly nine years from the date of booking.
RERA Rejects Developer’s Justifications
The developer argued that the later sale agreement replaced earlier possession commitments and that COVID-19 disruptions justified further delays.
Telangana RERA firmly rejected both arguments.
The authority held that a developer cannot rely on a subsequently executed agreement, especially one signed after major payments, to override original possession obligations. Accepting such logic would allow developers to indefinitely postpone delivery by repeatedly revising agreements.
RERA also clarified that COVID-related extensions cannot be used as a blanket defence, particularly when delays had already occurred well before the pandemic.
Project Identity Mismatch Raises Transparency Concerns
During proceedings, RERA noted that the project was registered as “AAVAS HYDERABAD”, while it was marketed under the name “Aavaas by Nebula.”
Such inconsistencies undermine transparency and can mislead buyers. Accurate project identification is a fundamental requirement under RERA, ensuring buyers can verify registration details, approvals, and compliance without confusion.
RERA’s Directions to the Developer
Telangana RERA issued clear and time-bound instructions:
- Issue a complete statement of accounts to the buyers
- Execute the sale deed
- Hand over possession within 30 days, subject to buyers clearing legitimate outstanding dues
The authority further warned that failure to comply would invite penal action under the Act.
Why This Ruling Matters for Homebuyers
This order reinforces several critical principles under the Real Estate Act:
- Possession timelines are legally binding commitments, not flexible estimates
- Buyer consent obtained under financial pressure will be closely scrutinized
- Transparency in project registration and marketing is mandatory
For homebuyers, the ruling highlights the importance of verifying original possession commitments, revised agreements, and RERA registration details at every stage of the purchase.
A Step Toward a More Accountable Real Estate Market
Telangana RERA’s decision signals a stronger regulatory stance against prolonged possession delays and unfair contractual practices. By recognising the real challenges faced by buyers, the authority has reinforced RERA’s role as a protective framework rather than a procedural formality.
For verified property platforms like Openplot, such rulings reinforce the need for accurate listings, verified project data, and transparent disclosures, helping buyers make informed decisions in an increasingly regulated real estate environment.