TG-RERA Just Voided a Builder's Flat Cancellation in Hyderabad: What the Aditya Capitol Heights Order Means for Delayed-Project Buyers

A Hyderabad couple booked a flat in 2017, paid close to 78 percent of the price over the next few years, and then received a letter in July 2025 telling them their allotment was cancelled. The project they had bought into, Aditya Capitol Heights at Hafeezpet in Serilingampally, still had no Occupancy Certificate years after its completion date had passed. In May 2026, TG-RERA stepped in and called the cancellation what it was. For anyone buying an under-construction flat in Hyderabad, this order is a clear lesson in what RERA can fix, and what it cannot prevent.

The short answer. Per Hyderabad Mail (12 May 2026), TG-RERA directed Aditya Construction Company to reimburse all Pre-EMI amounts and withdraw delay charges and penal interest on its delayed Aditya Capitol Heights project, declaring the builder's July 2025 cancellation letter arbitrary and void. The flat was valued at Rs 76.03 lakh, buyers had paid around Rs 59.40 lakh, and the project lacked an OC against a March 2020 completion date. The relief is real, but it took years.

What did TG-RERA actually order against Aditya Construction?

According to Hyderabad Mail's report on the order, TG-RERA directed the builder to reimburse all Pre-EMI amounts paid up to 26 August 2022 within 40 days, and to withdraw the delay charges and penal interest it had levied. The authority declared the builder's cancellation letter, issued on 18 July 2025, to be arbitrary, illegal, and void from the start. The flat carried a sale value of Rs 76.03 lakh for 1,610 sq ft on the ninth floor of A-Block, and the complainants had paid roughly Rs 59.40 lakh, about 78 percent of the total.

Why was the cancellation letter declared void?

The core finding was imbalance. The builder had collected a large majority of the price, had itself stopped meeting its Pre-EMI obligations, and the project still had no OC against a completion date of 18 March 2020. The order noted that the builder discontinuing Pre-EMI payments after February 2018, despite having received a substantial share of the sale consideration by then, amounted to a breach. Against that backdrop, cancelling the buyer's allotment for non-payment was treated as a one-sided act that RERA would not allow to stand.

What is Pre-EMI and why did it matter here?

In a subvention or Pre-EMI scheme, a buyer takes a home loan, the bank disburses money to the builder in stages, and the builder is supposed to pay the interest (the Pre-EMI) during the construction period. It is marketed as a way to buy without carrying interest until possession. The risk surfaces when the builder stops paying. In this case the order recorded that the builder had received nearly 50 to 68 percent of the total sale consideration by the time it discontinued Pre-EMI, leaving the buyer exposed between the lender and the developer.

How does this protect other delayed-project buyers?

The order sets a useful reference point. It signals that TG-RERA will scrutinise one-sided cancellation clauses, that a builder cannot collect most of the money and then walk away from its own obligations, and that penal interest imposed only on the buyer can be struck down. For buyers in stalled Hyderabad projects, it confirms that documented payments and a filed complaint can produce relief. The protection is conditional, though: it depends entirely on the buyer having kept records and being willing to litigate.

What does a missing OC do to your loan and resale?

A missing OC means the building is not legally certified for occupation. Lenders treat it as a red flag, which makes loans and resale harder, so it should weigh heavily in any pre-booking decision.

How do you file a TG-RERA complaint?

Complaints are filed through the TG-RERA portal at rera.telangana.gov.in, with supporting documents that include the builder-buyer agreement, all payment receipts, the allotment letter, and any correspondence such as a cancellation notice. The stronger your paper trail, the stronger your case. Given the timelines involved, file early rather than waiting for a project to deteriorate further. Keep digital and physical copies of every receipt, since the entire remedy in the Aditya Capitol Heights matter rested on documented payments.

What should you check before booking an under-construction Hyderabad flat?

Verify OC or CC status and the project's TG-RERA completion date against ground reality. Read the cancellation and penalty clauses carefully and flag any that are one-sided. If a subvention scheme is offered, get every term in writing and confirm who bears interest at each stage. Treat ready flats without an OC as high-risk. The Aditya Capitol Heights buyers eventually won, but only after years of locked capital, which is a cost no order can refund.

Buyer checklist for under-construction Hyderabad flats

1. Keep every payment receipt and the builder-buyer agreement.
2. Verify OC or CC status before booking.
3. Check the project's TG-RERA completion date against reality.
4. Flag one-sided penalty and cancellation clauses.
5. Confirm Pre-EMI or subvention terms in writing.
6. File complaints on rera.telangana.gov.in promptly.
7. Treat no-OC ready flats as high-risk.

Frequently asked questions

Can a builder cancel my flat for non-payment of Pre-EMI?
Not unilaterally, based on the TG-RERA Aditya Capitol Heights order. The authority found that cancelling an allotment after collecting a large share of the price, while the builder itself had defaulted on Pre-EMI obligations, was arbitrary and void. A one-sided cancellation can be challenged before RERA, but you must keep payment proof and the builder-buyer agreement.

What happens if a project has no Occupancy Certificate?
A missing OC is a serious problem. Without it, the building is not legally certified for occupation, banks may refuse or delay home loans, and resale becomes far harder. In the Aditya Capitol Heights matter, the project lacked an OC well past its completion date. Always confirm OC or CC status before booking a ready or near-ready Hyderabad flat.

How long does a TG-RERA complaint take?
Longer than most buyers expect. In the Aditya Capitol Heights case, buyers booked around 2017 and the order came in 2026. RERA can deliver real relief, including voiding a wrongful cancellation and ordering refunds, but the process ties up your capital and time for years. That delay is itself a reason to avoid troubled, no-OC projects in the first place.

Is a subvention or Pre-EMI scheme safe?
It carries risk. In subvention schemes the builder is meant to pay Pre-EMI interest during construction, but if the builder stops paying, as happened in the Aditya Capitol Heights matter, the buyer can be caught between the bank and the developer. Get every subvention term in writing, confirm who bears interest at each stage, and verify the builder's track record before signing.

Last updated 29 May 2026. PropNewz Team.