Karnataka RERA Orders Ozone Infra to Pay Rs 19.87 Lakh Interest to Homebuyers for Four-Year Possession Delay

The Karnataka Real Estate Regulatory Authority (K-RERA)  has directed Ozone Infra Developers to pay Rs 19.87 lakh as interest for the delayed handover of an apartment to two homebuyers who have been waiting for possession for over four years beyond the promised date.

The authority also asked the developer to hand over possession at the earliest after obtaining the Occupancy Certificate. The complaint was decided ex parte after the builder failed to file any objections despite being given repeated opportunities.

Authority Member G. R. Reddy, who heard the matter, noted that the delay was not in dispute and that the buyers had already paid a substantial portion of the sale consideration.

It observed that it was “evident that complainants have paid advance sale consideration amount and admittedly there is a delay in handing over the apartment as per the agreement.” It also pointed out that the builder had not even communicated a probable date for completion or possession.

The homebuyers had booked a flat in the project “Ozone Urbana Prime” in Bengaluru. They entered into an agreement for sale with the builder on September 3, 2018. Under the agreement, the apartment was to be completed and handed over by June 30, 2021.

By then, the buyers had paid about Rs 44.41 lakh.With the project still incomplete long after the agreed date, they approached the Authority seeking interest for the period of delay.

During the proceedings, the buyers appeared through counsel and filed their calculation of the delay interest along with supporting documents.The developer, however, kept seeking time after which the authority decided to proceed without hearing the builder.

Holding that there was delay, the authority held that the buyers were entitled to interest for the delayed period under Section 18 of the Real Estate Regulation and Development Act, 2016.

It directed the developer to pay interest from June 30, 2021, until the date possession is handed over along with the Occupancy Certificate.

Based on the homebuyers' calculation, the interest payable came to Rs 19.87 lakh, which the developer has been directed to pay within 60 days. The authority also clarified that interest will continue to accrue every month until possession is given and directed the developer to hand over the apartment with all promised amenities and execute the registered sale deed. The homebuyers have been given liberty to initiate further action if the order is not complied with.

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