Karnataka RERA Orders Mantri Developers To Pay ₹65 Lakh To Homebuyer For 7-Year Delay In Possession
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed Mantri Developers, the builder, to pay Sixty-Five lakh rupees to the homebuyer as interest for 7 Years delay in handing over possession of the flat. According to the agreement, the builder was supposed to hand over possession by March 2015.Background FactsThe homebuyer (Complainant)...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed Mantri Developers, the builder, to pay Sixty-Five lakh rupees to the homebuyer as interest for 7 Years delay in handing over possession of the flat. According to the agreement, the builder was supposed to hand over possession by March 2015.
Background Facts
The homebuyer (Complainant) booked Flat No. U601 in the builder's (Respondent) project named "Mantri Webcity 3A," for a total sale consideration of Rs. 88,82,569. On June 30, 2013, when entering into the agreement of sale and construction, the homebuyer paid Rs. 4,95,000 to the builder.
The homebuyer subsequently paid the remaining amount of Rs. 83,87,569 to the builder on various dates. The builder was supposed to hand over the possession of the flat along with all the promised amenities to the homebuyer by December 31, 2016.
However, the builder did not hand over the flat by the promised date and requested further time from the homebuyer, assuring an early handover. Finally, the builder executed the sale deed and handed over the possession of the flat on June 30, 2022. Therefore, being aggrieved by the late possession, Homebuyer filed complaint before the authority.
Contentions of Builder
The builder argued that the homebuyer initially claimed Rs. 7,26,718 as delay compensation and for a free kitchen promised at the time of booking. However, in the memo of calculation, the homebuyer added a claim for interest on the delayed period. The builder contends that the homebuyer cannot add another claim in the memo of calculation without the permission of the Authority.
The builder further contended that the homebuyer was satisfied with the builder's progress and statutory requirements at the time of entering into the sale and construction agreement. Therefore, the builder prays for the dismissal the complaint.
Observation and Direction by Authority
The authority observed that despite entering into an agreement to deliver the flat to the homebuyer by March 2015 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. Therefore, Builder is liable to pay interest to homebuyer for delayed possession under Section 18 of RERA, 2016.
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'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.
Therefore, the authority directed the builder to pay Rs. 65,62,875/- to the homebuyer as interest for the delayed possession from March 31, 2015, to November 18, 2024.
Case – Anitha Bakhtani Versus Mantri Developers Pvt. Ltd
Citation - CMP/220802/0009840