Delayed Possession And Failure To Pay Pre-EMI, Karnataka RERA Directs Ozone Realtors To Refund Rs. 86 Lakhs To Homebuyer
Karnataka Real Estate Regulatory Authority (Authority) bench comprising Neelmani N. Raju (Member) has directed Ozone Realtors Private Limited to refund Rs. 86.32 lakhs to the homebuyer after the builder failed to provide possession of the flat on time and did not pay the Pre-EMI. Background Facts The homebuyer (Complainant) booked a flat in the builder's (Respondent) project named...
Karnataka Real Estate Regulatory Authority (Authority) bench comprising Neelmani N. Raju (Member) has directed Ozone Realtors Private Limited to refund Rs. 86.32 lakhs to the homebuyer after the builder failed to provide possession of the flat on time and did not pay the Pre-EMI.
Background Facts
The homebuyer (Complainant) booked a flat in the builder's (Respondent) project named Ozone Polestar located in Bangalore Urban District under the subvention scheme for a total sale consideration of Rs. 1,32,08,000 and entered into a sale agreement on April 13, 2018.
As per the agreement the builder was supposed to hand over possession of the flat by December 2021. Additionally, the homebuyer entered into a tripartite agreement with IHFL and the builder on July 2, 2018 for availing of a housing loan.
According to the subvention scheme the builder was to pay the PEMI (Pre-EMI) to the financial institution until the flat was ready for handover. However, the builder stopped making PEMI payments.
Since the builder failed to complete the project on time and also stopped making PEMI payments the homebuyer was compelled to cover the PEMI payments themselves.
On December 27, 2022, the homebuyer notified the builder that they were no longer interested in purchasing the flat due to the prolonged delay and approached the authority seeking a refund of Rs. 53,44,160 with interest.
Observation and Direction by Authority
The authority observed that according to the agreements between homebuyers and the builder, the homebuyers were supposed to receive possession of the flat by December 2021. However, the builder failed to provide possession of the flat within the agreed time. Additionally, the builder did not pay the pre-EMIs to the financial institution as promised.
Authority held that since the builder accepted a substantial amount as sale consideration and failed to deliver the flat or pay the pre-EMIs therefore, homebuyers are entitled to a refund.
Further, Authority held that according to Section 18(1) of the RERA, 2016, if the builder fails to complete the project or provide possession of the apartment as stated in the sale agreement they must return the received amount along with interest and compensation.
Therefore, the Authority directed the Builder to refund Rs.86,32,541/- to the Homebuyer within 60 days.
Case – Anand Puranik & anr Versus Ozone Realtors Private Limited
Citation – 00098/2024
Date of order - 13/11/2024
Click Here To Read/Download The Order