Karnataka RERA Directs Ozone Realtors To Refund 1.49 Crore To Homebuyer Due To Delayed Possession

Karnataka Real Estate Regulatory Authority (“Authority”) bench comprising of GR Reddy (Member) directed Ozone Realtors to refund Rs. 1.49 crore to the homebuyer for failing to deliver possession by the promised date in December 2021. Background Facts Homebuyer (Complainant) booked Flat in the builder's (Respondent) project named Ozone Polestar in 2018. They executed an Agreement of Sale on 16 February 2019 for a total sale consideration of Rs.2.16 crore. The homebuyer paid Rs.4.51 lakh to the builder on different dates. The homebuyer then applied for a home loan with HDFC. The bank sanctioned Rs.1.62 crore and disbursed Rs.65.07 lakh to the builder. A Tripartite Agreement dated 8 February 2019 was executed between the homebuyer, the builder and the bank. Under the agreement, the builder was required to complete the project and hand over possession by December 2021. The project remained incomplete. Meanwhile, the bank began deducting interest on the disbursed loan amount. Since the builder failed to pay the pre-EMI as required under the Tripartite Agreement, the homebuyer was compelled to pay it. Homebuyer approached the Karnataka High Court (W.P. No. 10211), where the Court directed that the Directors of the builder company be impleaded in the complaint. The homebuyer also filed W.P. No. 7549 of 2025 seeking directions for payment of pre-EMI. By an interim order dated 1 April 2025, the High Court directed the builder to pay the pre-EMI to the bank. Despite these directions, the builder neither completed the project nor refunded the amounts collected from the homebuyer. Therefore, being aggrieved, homebuyer filed complaint before authority seeking refund along with interest. Observation and Direction by Authority Authority observed that even after signing the Agreement of Sale and taking a substantial part of the sale consideration, the builder did not hand over possession of the flat. The builder also neither completed the flat nor refunded the money. Authority noted that the homebuyer repeatedly tried to contact the builder but the builder did not respond leaving the homebuyer with no choice but to exit the project. 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 flat within the time stipulated under the terms of the agreement then the homebuyer right under the RERA to seek interest for delay is unconditional and absolute. Authority also referred to the Supreme Court's decision in Imperia Structures Ltd. v. Anil Patni (Civil Appeal Nos. 3581–3590 of 2020) where the Court held that under Section 18 of the RERA, a homebuyer who chooses to withdraw from the project is entitled to an unconditional refund with prescribed interest. Therefore, Authority directed the builder to refund Rs.1.49 crore to the homebuyer along with interest at MCLR + 2%, calculated from 30 November 2018 to 6 August 2025. Case – Gurajapu Venkata Satya Manikya Varaprasad vs. M/s Ozone Realtors Private Limited Citation – Complaint No. CMP/00380/2025 Click Here To Read/Download Order

Karnataka RERA Directs Ozone Realtors To Refund 1.49 Crore To Homebuyer Due To Delayed Possession

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Karnataka RERA Directs Ozone Realtors To Refund 1.49 Crore To Homebuyer Due To Delayed Possession

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