Four-Year Delay In Completing Project, Karnataka RERA Orders Mantri Technology Constellations To Refund

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising HC Kishore Chandra (Chairperson), has directed Mantri Technology Constellations Pvt. Ltd., the builder, to refund the amount paid by the homebuyer for purchasing a flat, after the builder failed to complete the project despite a four-year delay. Background Facts A homebuyer booked a flat in the builder's project named Mantri Manyata Energia, situated at Rachenahalli, Bangalore East. On 31.05.2017, the homebuyer entered into a sale agreement and a construction agreement to purchase the flat. The total sale consideration of the flat was Rs. 85,70,050/-, out of which the homebuyer paid Rs. 10,00,000/- to the builder as an advance. The builder was supposed to hand over possession of the flat on or before 31.12.2018. However, according to the homebuyer, the construction of the project is progressing at a very slow pace. Therefore, he filed a complaint before the authority, seeking a refund with interest. Observation and Direction of Authority The authority observed that, according to the sale agreement and construction agreement entered into by the builder with the homebuyer, the builder was supposed to hand over possession of the flat by December 31, 2019. However, the builder failed to abide by the terms of both agreements by not delivering possession within the promised timeframe. The authority noted that in the case of a delay in handing over possession, Section 18 of the Real Estate (Regulation and Development) Act, 2016, stipulates that if the allottees wish to withdraw from the project, the promoter is liable to return the amount received for the apartment, plot, or building, along with interest at the prescribed rate and compensation as provided under this Act. Therefore, the authority directed the builder to refund ₹17,02,426 to the homebuyer for failing to deliver possession of the flat within the promised timeframe under Section 18(1) of RERA, 2016. Case - Mallikarjuna Js & another Versus Mantri Technology Constellations Pvt. Ltd. Citation - COMPLAINT NO.: CMP/220303/0009066

Four-Year Delay In Completing Project, Karnataka RERA Orders Mantri Technology Constellations To Refund

Aryan Raj

Tags