Homebuyer in Bengaluru wins Rs 2.56 cr refund as builder delays apartment

Karnataka RERA confirms developer did not fulfill obligations agreed upon at time of sale

The Karnataka Real Estate Regulatory Authority (K-RERA) has asked a real estate developer to return Rs 2.56 crore to a homebuyer for failing to hand over possession of an apartment after more than five years of delay.

 

According to K-RERA, the complainant booked an apartment in Mantri Webcity 2A, Bengaluru, in April 2015. A sale agreement was signed on April 17, 2015 for a total consideration was Rs 14,615,251. According to the agreement, the possession was promised by March 31, 2017.

 

However, the developer failed to deliver the apartment within this timeline. Despite several years passing since the promised handover date, the homebuyer was neither given possession of the flat nor any clear communication about the revised timeline for delivery. The buyer approached K-RERA for a refund along with interest.

 

 

K-RERA reviewed documents and confirmed that the builder had not fulfilled obligations agreed upon. “The developer had committed to hand over the apartment by December 2018, including a grace period. However, even after 60 months from the date of agreement, possession has not been offered,” said K-RERA in an order.

 

In its final decision, the RERA Authority asked the developer to refund the full amount paid by the homebuyer: Rs 14,615,251 along with interest of Rs 12,708,927. The total amount to be paid comes to Rs 25,647,520.

 

The order said that the refund must be completed within 60 days from the date of the notice. In case of non-payment, the homebuyer has the right to initiate recovery proceedings under Section 40 of the RERA Act. This allows the homebuyer to recover the money as if it were an arrear of land revenue through the Deputy Commissioner of the concerned district.