Karnataka RERA Orders Builder To Pay 48 Lakh Rupees To Homebuyer As Interest For Delay In Handing Over Possession
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed the builder to pay forty-eight lakh rupees to the homebuyer as interest for the delay in handing over possession of the flat. As per the agreement, the builder was supposed to hand over possession by March 2019. Background Facts The Homebuyer (Complainant) purchased a flat in...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed the builder to pay forty-eight lakh rupees to the homebuyer as interest for the delay in handing over possession of the flat. As per the agreement, the builder was supposed to hand over possession by March 2019.
Background Facts
The Homebuyer (Complainant) purchased a flat in the Builder's (Respondent no 1) real estate project named ND Passion Elite for a total cost of Rs. 93,37,700. An agreement of sale was entered into on 15-02-2019, stipulating that the Builder was to hand over possession of the flat by 05-03-2019. The Homebuyer paid the entire sale consideration of Rs. 93,37,700 on various dates to the Builder.
Over five years have passed since the agreed timeline, yet the Builder has still not completed the project or delivered possession of the flat to the Homebuyer. During this period, the Homebuyer took out a home loan of Rs. 75,00,000 from Andhra Bank and has been consistently paying an EMI of Rs. 59,000.
The Homebuyer sent several email correspondences to the Builder but received no response. Additionally, the Homebuyer visited the Builder's office multiple times, only to receive false assurances. The Builder has completed the amenities and handed over possession to buyers who purchased through the builder's share but not to those who bought through the landowner's share.
Aggrieved by the delay and the conduct of the Builder, the Homebuyer filed complaint before the Authority seeking possession with all amenities and interest for the delay period until the possession is handed over.
Observation and Direction by Authority
The Authority observed that, as per the sale deed, the builder was supposed to hand over possession of the flat to the homebuyer in March 2019. The homebuyer tried to communicate with the builder and requested them to fulfill all obligations and hand over possession, but there was no response from their end.
The Authority referred to the Supreme Court decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors, wherein it was held that if the Promoter fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the Allottee's right under the Act to seek a refund or claim interest for delay is unconditional and absolute, regardless of unforeseen events or stay orders of the Court/Tribunal.
Therefore, the Authority directed the builder to pay a sum of Rs. 48,43,473/- as interest for the delay period from 05-03-2019 to 15-03-2024, to the homebuyer within 60 days.
Case – K Vimalkumar Versus ND Developers Private Limited and others
Citation - COMPLAINT NO: CMP/00193/2023