Six 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 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 a six-year delay. Background Fact On 20.08.2014, the homebuyer (Complainant) entered into a sale agreement with the...
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed 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 a six-year delay.
Background Fact
On 20.08.2014, the homebuyer (Complainant) entered into a sale agreement with the builder (Respondent) to purchase an apartment in the builder's project named Pashmina Brookwoods. According to the agreement, the builder was supposed to complete the construction of the flat by 28.02.2017. To purchase the flat, the homebuyer paid Rs. 16,15,654/- to the builder.
Due to a delay of more than six years in completing the project, the homebuyer decided to withdraw from the project. Therefore, the homebuyer filed complaint before the authority seeking a refund of the amount paid with interest.
Observation and Direction by authority
The authority observed that the builder has failed to complete or hand over the apartment to the buyers, even after six years from the date of completion. The builder has made no progress in construction and has not communicated when the construction will be finished or when the apartment will be handed over to the homebuyers.
The authority observed that in case of delay in handing over possession, as per Section 18 of the Real Estate (Regulation and Development) Act, 2016, if the allottees wish to withdraw from the project, the promoter is liable to return the amount received for the apartment, plot, or building, along with interest at the prescribed rate and compensation as provided under this Act.
Therefore, the Authority directed the builder to refund Rs. 22,35,980 with interest to the homebuyer within 60 days.
Case – Rajiv Kumar Kushwaha & another Versus M/s. Sashwati Realty Pvt Ltd
Citation - Complaint No: CMP/0627/2023