Karnataka RERA Holds Shriprop Projects For Delayed Possession Of 2 Years, Orders Interest To Homebuyer

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N. Raju (Member), has directed Shriprop Projects Pvt. Ltd, the builder, to pay interest to the homebuyer after the builder handed over possession of the flat with a 2-year delay. According to the terms of the agreement, the builder was supposed to hand over possession by September 2020. Background Facts On 20.01.2016, the homebuyer (Complainant) booked a flat in the builder's (Respondent) project named Shriram Southern Crest by paying Rs. 1,00,000 as the booking amount. The agreement for sale and the construction agreement were executed between the homebuyer and the builder on 23.03.2017. To purchase the flat, the homebuyer paid a total of Rs. 99,48,665 to the builder. The builder was supposed to hand over possession of the flat within three years from the date of the agreement, with a grace period of six months, (i.e. September 2020). The homebuyer had taken a housing loan from SBI and ensured that the payments requested by the builder were released by the bank without any delay. However, due to a delay of nearly two years, the homebuyer incurred financial losses, including bank interest and rent, and suffered mental stress due to these financial constraints. The builder eventually handed over possession of the flat and executed the sale deed on 09.09.2022, with a partial occupancy certificate issued by the municipality on 26.09.2022. Despite several emails and phone calls to the builder's Customer Relationship Management (CRM) Team requesting interest for the delay period, the homebuyer was informed that no compensation would be paid, as the builder had received an extension for the project until March 2023 from RERA. Therefore, feeling aggrieved, the homebuyer filed a complaint before the Authority seeking interest for the delay period under Section 18(1) of RERA, 2016. Observation and Direction by Authority The Authority observed that the builder failed to respect to the terms of the sale and construction agreement, which required handing over the flat within three years, with a grace period of six months, by September 23, 2020. Instead, the builder delayed the possession and the execution of the sale deed until September 9, 2022, nearly two years late. Authority further observed that delay is evident from the complaint and the agreements, which clearly show that the homebuyer received possession almost two years after the promised possession date. Since the builder accepted the full sale consideration of the flat and delayed handing over the flat, therefore, homebuyers are entitled to receive the interest for the delay under Section 18(1) of RERA, 2016. Therefore, the Authority directed the builder to pay Rs. 15,31,620 to the homebuyer as interest for the delay in handing over possession, within 60 days. Case – Kapil Chandrika Pandey & anr Versus Shriprop Projects Pvt. Ltd Citation - Complaint No:01292/2023 Click Here To Read/Download Order

Karnataka RERA Holds Shriprop Projects For Delayed Possession Of 2 Years, Orders Interest To Homebuyer

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Karnataka RERA Holds Shriprop Projects For Delayed Possession Of 2 Years, Orders Interest To Homebuyer

Aryan Raj

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INR 1099+GST

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