Delay In Handing Over Possession, Karnataka RERA Directs Ozone Urbana Infra Developers To Refund 82 Lakhs To Homebuyer
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member), has directed the builder, Ozone Urbana Infra Developers, to refund Rs. 82 lakhs to the homebuyer after the builder failed to provide possession of the flat on time. According to the agreement, the builder promised to provide possession by June 2023. Background Facts The...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member), has directed the builder, Ozone Urbana Infra Developers, to refund Rs. 82 lakhs to the homebuyer after the builder failed to provide possession of the flat on time. According to the agreement, the builder promised to provide possession by June 2023.
Background Facts
The homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named Urbana Avenue, which was part of the integrated township project Ozone Urbania. To purchase the flat, both the builder and the homebuyer entered into an agreement for sale on 04.12.2019. According to the agreement, the builder was supposed to hand over the flat by December 2022, with a 6-month grace period.
However, despite the homebuyer paying Rs. 56,28,790 out of the total cost of Rs. 66,17,808 to the builder, the builder failed to hand over possession of the flat on the promised time.
Homebuyer contended that the builder has repeatedly delayed the possession handover date, hasn't provided any updates on the project, and has stopped communicating with them, leaving the homebuyer uncertain about the flat's possession date.
Aggrieved by the delay, the homebuyer decided to withdraw from the project and filed complaint before the authority seeking a refund with interest.
Observation and Direction by Authority
The authority observed that despite entering into a contract to hand over the flat to the homebuyer by June 2023 (including the grace period) and receiving Rs. 56,28,790 out of the total cost, the builder has failed to follow the terms of the agreement and has not handed over possession of the flat. Therefore, the authority held that the homebuyer is entitled to a refund of the entire amount with interest.
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 builder fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer's right under the RERA, 2016 to seek a refund or claim interest for delay is unconditional and absolute, regardless of unforeseen events or stay orders of the Court/Tribunal.
The authority also referred the Supreme Court decision in the case of M/s Imperia Structures Limited v. Anil Patni & Another, where it was held that under Section 18 of the RERA Act, if a builder fails to complete or give possession of an apartment by the specified date, the builder must return the amount received if the homebuyer wishes to withdraw from the project.
Therefore, the authority allowed the homebuyer to withdraw from the project and directed the builder to refund Rs. 82,58,652 to the homebuyer within 60 days.
Case – Bharatkumar Ravishankar Sharma & Another Versus Ozone Urbana Infra Developers
Citation - Complaint No: 00019/2024