Failure To Provide Possession Within 12 Months, Karnataka RERA Orders Builder To Refund Amount Paid By Homebuyer
Aryan Raj
15 July 2024 1:00 PM GMT
Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed GVG Infrastructure Pvt. Ltd., the builder, to refund the amount paid by the homebuyer to purchase the flat, along with interest, after the builder failed to provide possession on time.
As per the agreement of sale signed between the builder and the homebuyer, the builder was supposed to hand over possession within 12 months.
Background Facts
The homebuyer booked a flat on the ground floor with two car parking spaces in the builder's project named Malberry Mist. The homebuyer and the builder signed both a construction agreement and a sale agreement on August 25, 2018, and the homebuyer paid an advance of Rs. 23,21,526 out of the total sale price of Rs. 84,39,760.
As per the agreement, the builder was supposed to complete the project and hand over possession of the flat to the homebuyer within 12 months. However, the builder failed to complete the project and hand over the flat to the homebuyer to date.
According to the homebuyer, there seems to be no positive progress in the project's completion, and the reasons for the delay are known only to the builder. Therefore, aggrieved by the delay and lack of positive progress, the homebuyer filed a complaint before the authority seeking a refund with interest.
Observation and Direction by Authority
The authority observed that despite receiving Rs. 23,21,526 from the homebuyer, the builder failed to respect the terms of the sale agreement signed on August 25, 2018. Therefore, the homebuyer is entitled to receive a refund with interest.
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/Tribunal.
Therefore, the Authority directed the Builder to pay a sum of Rs. 34,77,086/- as a refund with interest to the Homebuyers within 60 days.
Case – Dhimosh Mangadan & anr. Versus GVG Infrastructure Pvt Ltd
Citation - COMPLAINT NO: CMP/001093/2023
