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Karnataka RERA Grants Second Extension To Varin Infra Projects To Complete Project
Aryan Raj
26 March 2024 3:00 PM GMT
The Karnataka Real Estate Regulatory Authority (KRERA) bench, comprising HC Kishore Chandra (Chairperson) and Neelmani N Raju (Member), granted a 2-year extension to Varin Infra Projects Pvt. Ltd for its project Adarsh Tranqville for the second time, under Section 7(3) of the RERA 2016. In total, this is the fourth extension of the project, the other two extensions were granted...
The Karnataka Real Estate Regulatory Authority (KRERA) bench, comprising HC Kishore Chandra (Chairperson) and Neelmani N Raju (Member), granted a 2-year extension to Varin Infra Projects Pvt. Ltd for its project Adarsh Tranqville for the second time, under Section 7(3) of the RERA 2016. In total, this is the fourth extension of the project, the other two extensions were granted by Karnataka RERA on the grounds of Covid-19 under Section 6 of RERA 2016.
For knowledge, under Section 6, builders can be granted one year extension to complete their projects in cases of force majeure event. Whereas Section 7(3) empowers RERA to extend the project duration with specified terms and conditions if it is deemed to benefit the Homebuyers.
Background Fact
The builder, who is the promoter of Adarsh Tranqville, filed an extension application on 16.02.2024 to seek an extension for the said project. The completion date of the project was initially set for 31.08.2020, however, it was extended to 31.05.2022 by KRERA due to COVID-19.
The builder contended that the project was delayed due to the impact of the Covid-19 wave effect, shortage of construction raw materials, disruptions in labor availability, economic slowdown causing liquidity crunch, and a fall in demand situation, which are beyond the control of the promoter. Thus, the builder filed an extension application before KRERA to seek a 12-month extension from the authority.
RERA Order
KRERA extended the project completion date to 06.03.26, holding that considering the interest of homebuyers, it is better to provide extension to the project.
KRERA placed reliance on Section 7(3) RERA 2016 which is read as follows:
Section 7: Revocation of registration
(3) The Authority may, instead of revoking the registration under sub-section (1), permit it to remain in force subject to such further terms and conditions as it thinks fit to impose in the interest of the allottees, and any such terms and conditions so imposed shall be binding upon the promoter.
Further, the Authority permitted the builder to continue the development work of the project and complete all project amenities by 06.03.2026. Lastly, the Authority directed the builder to file monthly reports on the project's progress to keep the Authority informed of its status.
In conclusion, KRERA extended the completion date of the project to 06.03.26, imposing conditions that consider the interests of the homebuyer under Section 7(3) of RERA 2016.
Promoter Name : Builder Varin Infra Projects Pvt. Ltd
Project Name : Adarsh Tranqville
Click Here To Read/Download Order
