Karnataka RERA Holds Shrivision Homes Liable For Delayed Possession, Orders 30.2 Lakhs Interest To Homebuyer

Background Facts

Homebuyer (Complainant) booked a flat in the Tower 5 of builder's (Respondent) project named Shriram Chirping Woods located at Bengaluru Urban District. Homebuyer entered into the agreement for sale with builder on 3^rd February 2017 and paid Rs. 84,48,000/- to builder.

As per the agreement the builder was supposed to handover the possession of the flat by December 2017 with a grace period of 6 months.

The homebuyer contended that the builder delayed construction in Tower-5 while proceeding with Buildings 2 and 3. Additionally, the sales and marketing office was set up where Tower-5 was planned, which caused further delays. Furthermore, the homebuyer discovered that Towers 3, 4, and 5 had the same floor plan, and the construction of Tower-5 would not start until Towers 3 and 4 were completed.

Being Aggrieved by the delay, Homebuyer filed complaint before the authority seeking delayed interest under section 18(1) of the RERA, 2016.

Observation and Direction by Authority

The authority observed that despite entering into a sale and construction agreement to hand over possession of the flat by December 2017, with a grace period of six months, the builder failed to abide by the terms of the agreement and has not handed over possession of the flat to date.

The authority observed that the builder did not inform them about the ongoing litigation at the time of registration. Additionally, the builder failed to notify the homebuyer and other customers about the ongoing dispute despite being aware that National Green Tribunal (NGT) order could delay the project.

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 handover the possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer 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.

Therefore, the authority directed the builder to pay Rs. 30,24,422/- to the homebuyer as interest for the delayed possession from June 30, 2018 to March 30, 2024.

Case – Santosh Kumar Sahu & others Versus M/S Shrivision Homes Pvt. Ltd

Citation – Complaint No: 00357/ 2024

Date – 4 December