Karnataka RERA Orders Maars Infra Developers To Pay 7.12 Lakh Rupees To Homebuyer As Interest For Delay In Handing Over Possession

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N Raju (Member), has directed Maars Infra Developers Pvt Ltd, the builder, to pay 7.12 lakh rupees to the homebuyer as interest for a delay of 1 year in handing over possession of the flat. Background Facts On 18.09.2018, the homebuyer (Complainant) booked a flat in the builder's (Respondent no 1) project named “Shriram Blue” and entered into a sale agreement with the builder on 17.11.2018. The total sale consideration for the flat was Rs. 77,18,221/-, out of which the homebuyer paid Rs. 71,92,007/- to the builder. As per the sale agreement, the builder was supposed to hand over possession of the flat by 14.03.2022, with a grace period of 6 months. However, according to the homebuyer, the possession of the flat and the execution of the sale deed occurred on 22.09.2023, after a delay of 1 year. The homebuyer contended that the builder failed to deliver possession of the flat on time and that the occupancy certificate for the project is still pending as the project is still under construction. Furthermore, the homebuyer contended that instead of compensating for the delay, the builder offered a discount of Rs. 1,75,000/-, which he rejected. According to him, the builder is liable to compensate him with Rs. 10,30,444/- as delay interest. Therefore, feeling aggrieved, the homebuyer filed a complaint before the authority seeking appropriate delay interest. Observation and Direction by Authority Authority observed that despite entering into an agreement for sale to handover the flat within the stipulated time period (i.e. by 14.09.2022) the builder failed to respect the terms of the agreement and handed over the possession of the flat to homebuyer and executed sale deed on 22.09.2023. Authority further observed that builder has made the delay of 1 year in the handing over the possession and execution of the sale deed, Therefore, homebuyer is entitled to receive the delay interest from builder under section 18(1) of the RERA, 2016. 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 give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the homebuyer's 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/Tribunal. Therefore, the Authority directed the builder to pay Rs. 7,12,638/- to the homebuyer as interest for the delay in handing over possession, within 60 days. Case – Naresh Kumar Bathala Versus Maars Infra Developers Pvt Ltd Citation – Complaint No:00254/ 2024 Click Here To Read/Download Order

Karnataka RERA Orders Maars Infra Developers To Pay 7.12 Lakh Rupees To Homebuyer As Interest For Delay In Handing Over Possession

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Karnataka RERA Orders Maars Infra Developers To Pay 7.12 Lakh Rupees To Homebuyer As Interest For Delay In Handing Over Possession

Aryan Raj

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