Eight Years Delay In Completing Project, Karnataka RERA Orders Sashwati Realty To Refund
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed M/S Sashwati Realty, the builder, to refund the amount paid by the homebuyer to purchase a flat, after the builder failed to complete the project even after Eight-year delay Background Facts The homebuyer (Complainant) entered into an agreement on October 24, 2013, to purchase...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed M/S Sashwati Realty, the builder, to refund the amount paid by the homebuyer to purchase a flat, after the builder failed to complete the project even after Eight-year delay
Background Facts
The homebuyer (Complainant) entered into an agreement on October 24, 2013, to purchase an apartment in the builder's (Respondent) Pashmina Brookwoods project. According to the agreement, the builder was supposed to complete the project's construction by August 31, 2016. To buy the flat, the homebuyer paid Rs. 18,68,346/- to the builder by taking a loan from the bank.
The project completion was delayed by more than eight years. Due to this significant delay, the homebuyer decided to exit the project and requested a refund of the paid amount with interest. Therefore, the homebuyer filed a complaint before the authority seeking the refund of the amount paid along with interest.
Observation and Direction by Authority
The authority observed that the builder was obligated to complete the project and hand over possession of the flat by August 31, 2016. Despite this, the builder has failed to complete the project or deliver possession to the homebuyer even after eight years from the date of the agreement. Furthermore, there has been no significant progress in construction, and the homebuyer has not received any updates or timelines regarding the completion of the project or the handover of the apartment.
The authority further noted that Section 18 of the Real Estate (Regulation and Development) Act, 2016, clearly states that if the builder fails to hand over possession as per the terms of the agreement for sale, the homebuyer has the option to either withdraw from the project or remain with it. If the homebuyer chooses to stay and take possession, they are entitled to seek interest for the delayed period.
As a result of these delays and the lack of communication, the homebuyer has sought a refund of the money paid along with interest. Therefore, the authority directed the builder to refund Rs. 36,31,878/- to the homebuyer within 60 days.
Case – Ms. Aditya Jeurkar Versus M/s Sashwati Realty Pvt. Ltd.
Citation - COMPLAINT NO: CMP/1786/2023