Karnataka RERA Directs Ozone Urbana Infra Developers To Refund Rs. 1.02 Crores To Homebuyer

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member) has directed Ozone Urbana Infra Developers to refund Rs. 1.02 crores to the homebuyer after the builder failed to provide assured returns, pay Pre-EMIs and hand over the possession of the flat on time. Monthly assured returns projects are schemes in which builders guarantee to pay homebuyers a fixed amount at regular intervals, typically monthly or for a designated period. Background Facts Relying on the builder's (Respondent) reputation for providing timely delivery of possession, the homebuyer (Complainant) entered into a buyback agreement with the builder on November 22, 2017, for the purchase of a flat in the project named Urbana Aqua II located at NH7, Kannamangala, Devanahalli, Bengaluru Rural. Furthermore homebuyer entered into a sale and construction agreement with the builder and a tripartite agreement under a subvention scheme with India Infoline Finance Limited (IHFL). After 24 months the homebuyer was supposed to receive double the initial deposit of Rs. 19,00,000/-. The builder only paid Rs. 8,50,000/- in installments and later on December 2, 2019, they entered into an amended buyback agreement. Under this new agreement the builder agreed to pay an additional Rs. 9,50,000/- for the extended period. However, the builder failed to pay the full buyback amount. Additionally, the homebuyer contended that they approached the High Court of Karnataka and obtained an interim order on July 13, 2023, restraining the financial institution from taking coercive action and directing the builder to pay the Pre-EMIs. Being aggrieved by the builder's ignorance of the High Court's direction, the homebuyer filed a complaint before the authority seeking clearance of all liabilities and closure of the loan account. Observation and Direction by Authority Authority observed that builder entered into a buyback agreement and sale and construction agreement with homebuyer. Despite that the builder failed to abide by the terms of these agreements. The builder did not return the assured profits to the homebuyer, failed to hand over possession of the flat and stopped paying the Pre-EMIs as agreed. Authority further observed that builder's failure to return the assured guaranteed profits, pay the Pre-EMIs to the financial institution and hand over possession of the flat entitles the homebuyer to receive 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 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. Therefore, Authority directed the builder to refund Rs. 1,02,88,533/- with interest to the homebuyer within 60 days. Case Title – Gagan Chaturvedi Versus Ozone Urbana Infra Developers Private Limited Case Citation – Compliant No: 01016/2023 Date of Pronouncement – 30 November Click Here To Read/Download The Order

Karnataka RERA Directs Ozone Urbana Infra Developers To Refund Rs. 1.02 Crores To Homebuyer

Aryan Raj

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Karnataka RERA Directs Ozone Urbana Infra Developers To Refund Rs. 1.02 Crores To Homebuyer

Aryan Raj

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