Delay In Handing Over Possession, Karnataka RERA Directs Ozone Infra Developers To Pay Interest And Hand Over Possession To Homebuyer
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member), has directed Ozone Infra Developers Private Limited, the builder, to pay interest to the homebuyer for their failure to hand over possession of the flat on time and to hand over possession to the homebuyer. Background Facts On May 15, 2019, the homebuyer (complainant) purchased a...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member), has directed Ozone Infra Developers Private Limited, the builder, to pay interest to the homebuyer for their failure to hand over possession of the flat on time and to hand over possession to the homebuyer.
Background Facts
On May 15, 2019, the homebuyer (complainant) purchased a flat in the builder's (Respondent) project named Urbana Prime by signing a sale agreement. The total sale cost of the flat was Rs. 49,21,473/-, out of which the homebuyer paid Rs. 40,27,933/- to the builder.
As per the terms of the agreement, the builder was supposed to deliver the flat by June 2021, with a grace period until December 2021. However, even after receiving substantial consideration from the homebuyer, the builder failed to deliver the flat on time. The homebuyer contended that this delay caused significant financial loss and mental distress.
Therefore, aggrieved by the delay, the homebuyer filed complaint before the authority seeking interest for the delayed possession.
Observation and Direction by Authority
The authority observed that despite entering into an agreement to deliver the flat to the homebuyer by June 2021 and receiving a substantial amount, the builder has failed to fulfill the agreement's terms by not handing over possession of the flat to the homebuyer up to the present.
The Authority referred to the Supreme Court decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors (LL 2021 SC 641), where 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 Rs. 10,34,519/- to the homebuyer as interest for the delayed possession from December 31, 2021, to June 25, 2024. Additionally, the authority directed the builder to complete the project and hand over possession of the flat to the homebuyer.
Case – P Deepak Kumar Mahenderkar Versus Ozone Infra Developers Private Limited
Citation – Complaint No: 01249/2023