Builder Cannot Forfeit Amount In Absence Of Agreement With Forfeiture Clause, Telangana RERA Orders Full Refund To Homebuyer

Telangana RERA ordered a full refund to a homebuyer, ruling that a builder cannot forfeit an amount without an agreement containing a forfeiture clause. The homebuyer had paid a substantial amount towards the purchase of a property, but the builder failed to deliver possession within the stipulated time. The homebuyer sought a refund, but the builder attempted to forfeit the amount paid, citing delays on the part of the buyer. Telangana RERA held that in the absence of a specific forfeiture clause in the agreement, the builder’s action was unjustified. The authority directed the builder to refund the entire amount paid by the homebuyer along with interest. This decision underscores the importance of clear contractual terms and protects homebuyers from arbitrary forfeiture by builders.