Telangana REAT Holds That Extension of Project Registration Does Not Automatically Extend Contractual Possession Date
Case: M/s Vasavi Realtors LLP v. Taru Trivedi & Connected Matters
Case Nos.: T.A. Nos. 17 to 47 of 2026
Forum: Telangana Real Estate Appellate Tribunal (TSREAT)
Decision: 9 September 2026
The appeals arose from 31 complaints filed by homebuyers concerning the promoter's project “Vasavi Lake City-West” at Hafeezpet, Hyderabad. The Telangana RERA had directed the promoter to pay interest for delayed possession and to complete the project and hand over possession.
Background
The homebuyers had entered into agreements of sale with Vasavi Realtors in 2022. Under those agreements, possession was to be delivered by 31 August 2024, with a six-month grace period extending the date to 28 February 2025, subject to the applicable force-majeure provision.
The promoter subsequently obtained an extension of the RERA registration of the project. It contended that this extension should also affect the possession timeline.
The homebuyers, however, approached Telangana RERA after possession was not delivered within the agreed period.
Finding of the Telangana REAT
The Tribunal rejected the contention that an extension of RERA registration automatically extends the contractual possession date.
It held, in substance, that:
Extension of registration of a project does not, by itself, extend the possession date agreed between the promoter and the homebuyer.
The Tribunal treated the Agreement of Sale as a legally enforceable contract and held that the promoter could not unilaterally alter the agreed possession date. A change in that date would require agreement between the parties.
COVID-19 defence
The promoter also sought to rely upon the COVID-19 pandemic as a justification for the delay.
The Tribunal did not accept this contention because the agreements in question were executed after the lockdown periods, and they themselves stipulated specific possession timelines. The promoter therefore could not retrospectively rely upon COVID-19 to avoid its contractual and statutory liability for delay.
Interest for delayed possession
Telangana RERA had directed the promoter to pay interest at 10.70% per annum on the amounts actually paid by the respective homebuyers, calculated from 1 March 2025 until lawful possession was handed over.
The REAT found no illegality or procedural irregularity in these directions and confirmed the orders passed by Telangana RERA.
Important RERA proposition
The judgment is useful for the proposition that:
An extension granted by RERA to the validity/registration period of a real estate project does not automatically modify the possession date contractually agreed between the promoter and the allottee.
Thus, regulatory extension of project registration and contractual extension of possession are distinct matters. Unless the possession date is validly altered with the consent of the parties or otherwise justified under the governing contractual/statutory provisions, the original contractual date continues to be relevant for determining delay under Section 18 of the RERA Act.
Final outcome
The Telangana REAT dismissed all 31 appeals filed by Vasavi Realtors LLP and upheld Telangana RERA's orders directing payment of delay interest and completion/handing over of the project.
