Karnataka RERA Directs Mantri Developers To Refund Rs. 22.34 Lakh To Homebuyer For Delayed Possession

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member) has directed Mantri Developers to refund Rs. 22.34 Lakhs to the homebuyer for the delayed possession. Background Facts Homebuyer (complainant) booked a flat in the builder's (respondent) project named "Mantri Webcity 3C" located in Bangalore South, Bengaluru Urban in 2017 under the 10:90 scheme. As per the agreement, the builder was obligated to complete the project and hand over possession of the flat by December 2019. However, the builder failed to complete the project within the promised timeline. Homebuyer stated that during this period, a representative of the builder contacted him informing him that he must pay the entire amount by 30th November 2022 or risk forfeiture of the booking amount. The builder also issued a demand notice to the homebuyer that differed from the original terms of the agreement. Additionally, when the homebuyer inquired about the amenities and facilities of the project, the responses from the builder were unsatisfactory. Aggrieved by the builder's conduct, the homebuyer filed complaint before the authority seeking a refund of the amount paid along with applicable interest. Observation and Direction by Authority Authority noted that the homebuyer had paid a part of the sale consideration amounting to Rs. 12 Lakhs as advance booking money. It further observed that the builder having accepted this partial payment and failing to fulfill the promise of handing over possession of the flat on time entitles the homebuyer to a refund of the amount 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 is unconditional and absolute regardless of unforeseen events. Further, Authority held that according to Section 18(1) of the RERA, 2016, if the builder fails to complete the project or provide possession of the apartment as stated in the sale agreement they must return the received amount along with interest. Therefore, the Authority directed the Builder to pay a sum of Rs.22,34,185 which includes interest calculated at MLCR + 2%, from 1st May 2017 to 7th January 2025. Case – Rishi Kant Jha Versus M/s Mantri Developers Pvt. Ltd Citation – COMPLAINT NO: CMP/221201/0010417 Date – 22nd JanuaryClick Here To Read/Download The order

Karnataka RERA Directs Mantri Developers To Refund Rs. 22.34 Lakh To Homebuyer For Delayed Possession

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Karnataka RERA Directs Mantri Developers To Refund Rs. 22.34 Lakh To Homebuyer For Delayed Possession

Aryan Raj

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