Karnataka RERA Holds Shriram Properties Liable For Delayed Possession, Orders 12.77 Lakhs Interest To Homebuyer

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising GR Reddy (Member), has directed Shriram Properties to pay Rs. 12.77 Lakhs to the homebuyer as interest for delay in handing over possession of the flat. Background Facts Homebuyer (Complainant) purchased a flat in the builder's (Respondent) project named Shriram Summitt by entering into an agreement for sale on September 7, 2019. As per the agreement, the builder was required to hand over possession of the flat by December 31, 2019. Despite the homebuyer paying Rs.51,50,000, the builder handed over possession of the flat after a delay of two years. Therefore, being aggrieved the homebuyer filed a complaint before the authority, seeking interest for the delayed possession. Observation and Direction by Authority The Authority observed that the due date for possession of the flat was December 31, 2019, but the builder failed to hand over possession by that date and executed the sale deed in favor of the homebuyer on June 21, 2022, after a delay of more than two years. Therefore, the homebuyer is entitled to receive interest for the delay period. On the contention of builder that the delay was due to the Covid-19 pandemic, the Authority noted that the pandemic began in 2020, whereas the project's completion date was December 31, 2019. Therefore, the claim of Covid-19 as a reason for the delay was deemed untenable. Authority noted that the builder failed to inform the Authority about ongoing litigation before the National Green Tribunal (NGT) during the registration of the project. The builder also did not inform the homebuyer about the litigation that could have delayed the project. As a result, Authority directed the builder to pay Rs.12,77,074 as delay interest calculated at the State Bank of India's Marginal Cost of Funds Based Lending Rate (MCLR) + 2% to the homebuyer within 60 days from the date of the order. Case – Sandeep Vaman Palekar & Anr Versus M/s Shriram Properties Pvt Ltd. & Anr Citation – COMPLAINT NO: CMP/721/2024 Date - 17th January, 2025 Click Here To Read/Download The Order

Karnataka RERA Holds Shriram Properties Liable For Delayed Possession, Orders 12.77 Lakhs Interest To Homebuyer

Aryan Raj

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