Karnataka RERA Directs Ozone Urbana Infra Developers To Refund Rs. 1.08 Crores To Homebuyer For Delay

The homebuyer purchased a flat in the builder's Bengaluru Rural project to enjoy his retirement in a pollution-free green belt, away from the city. He was expecting possession of his flat by June 2023.

Background Facts

The homebuyer (Complainant) initially purchased Flat No. 401 in Block B of the builder's (Respondent) project named Urbana Avenue located in the Bengaluru Rural District. The homebuyer entered into the agreement for sale on 15 March 2018 for a total sale consideration of Rs. 72,19,586/-.

When the homebuyer visited the flat he felt that it did not have adequate light and air. Therefore, he switched his flat to Flat No. 403 in Block P whose total sale consideration was Rs. 76,18,990/-.

Later when the project was getting delayed he requested the builder to change his flat to a block that would be constructed earlier. Based on his choice the homebuyer switched to Flat No. 502 in Block D. The total sale consideration for the new flat was Rs. 78,26,737/-.

The homebuyer contended that the builder was supposed to hand over possession of Flat No. 502 by June 2023 but to date the builder has not handed over possession. The homebuyer further contended that he invested all his retirement benefits to purchase a flat to live in peace.

Therefore, being aggrieved the homebuyer filed a complaint before the authority seeking a refund of the money he paid to the builder, along with interest.

Observation and Direction by Authority

The authority observed that despite entering into agreement for sale to hand over the flat to the homebuyer by June 2023 and receiving total sales consideration the builder has failed to abide by the terms of the agreement and has failed to hand over possession of the flat.

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 observed that if the homebuyer wishes to withdraw from the project, the builder is liable, without prejudice to any other remedy available, to return the amount received from the homebuyer with interest as per Section 18(1) of RERA, 2016.

Therefore, the authority allowed the homebuyer to withdraw from the project and directed the builder to refund Rs. 1,08,42,236/- to the homebuyer within 60 days.

Case – A Hanumantha Char Versus Ozone Urbana Infra Developers Private Ltd

Citation – Complaint No: 00173/2024

Date – 22 November