Karnataka RERA Orders Dharwad-Based Builder To Refund ₹38.8 Lakhs To Homebuyer Due To Delay

Karnataka Real Estate Regulatory Authority (Authority) bench comprising Neelmani N. Raju (Member) has directed the Dharwad-based builder named Skytown Builders and Developers to refund ₹38.8 lakhs to the homebuyer after the builder failed to provide possession of the flat on time. Background Facts The homebuyer (Complainant) booked a residential flat on the ground floor in the builder's (Respondent) project named Skytown Luxuria for a total sale consideration of Rs. 27,00,000/- and entered into the agreement for sale on 31.08.2019. At the time of booking the builder promised to hand over possession of the flat within two years from the date of booking (before August 2021). However, the builder failed to complete the project as agreed and stalled the project. Therefore, being aggrieved the homebuyer filed a complaint before the authority seeking a refund of the amount paid with interest. Observation and Direction by Authority The authority observed that despite receiving substantial consideration from the homebuyer, the builder failed to respect the terms of the sale agreement signed on August 31, 2019. Therefore, the homebuyer is entitled to receive a 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. The authority also referred the Supreme Court decision in the case of M/s Imperia Structures Limited v. Anil Patni & Another, where it was held that under Section 18 of the RERA Act, if a builder fails to complete or give possession of an apartment by the specified date, the builder must return the amount received if the homebuyer wishes to withdraw from the project. Therefore, the authority allowed the homebuyer to withdraw from the project and directed the builder to refund Rs. 34,81,663 to the homebuyer within 60 days. Case – Shreepad G Shindgikar and Rahul Shindgikar Versus Skytown Builders and Developers Citation – Complaint No: CMP/211005/0008417 Date – 2 December Click Here To Read/Download The Order

Karnataka RERA Orders Dharwad-Based Builder To Refund ₹38.8 Lakhs To Homebuyer Due To Delay

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Karnataka RERA Orders Dharwad-Based Builder To Refund ₹38.8 Lakhs To Homebuyer Due To Delay

Aryan Raj

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