Karnataka RERA Orders Shrivision Towers To Pay Interest To Homebuyer For Delayed Possession

Karnataka Real Estate Regulatory Authority (Authority) bench, comprising Neelmani N. Raju (Member), has directed Shrivision Towers Private Ltd., the builder, to pay interest to the homebuyer for failing to hand over possession of the flat on time. According to the agreement, the builder was supposed to hand over possession by September 2021. Background Facts On 14.01.2020, the homebuyer (Complainant) entered into an agreement for sale with the builder (Respondent No 1) to purchase a flat in the project named Shriram Greenfield Phase-2. Under this agreement, the builder was supposed to hand over possession of the flat by March 2021. However, the homebuyer contended that despite paying Rs. 52,88,642 to the builder, there is no progress in the construction, the project is already running two years late, and the builder keeps changing the possession date. Furthermore, the homebuyer contended that they are paying a huge bank loan, and the compensation offered by the respondents is a meager Rs. 1,00,000. Therefore, feeling aggrieved, the homebuyer filed a complaint before the authority seeking interest for the delayed possession. Contention of Builder The builder contended that the project was delayed due to pending litigation before the National Green Tribunal (NGT) and the Supreme Court related to buffer zones. These issues forced them to stop construction, even though the nearby lake was 34 meters away, which met the 30-meter requirement of the Bruhat Bengaluru Mahanagara Palike (BBMP) Master Plan. However, a tribunal order increased the buffer zone to 75 meters. After resolving these legal matters, they resumed construction on the project. Observation and Direction by Authority The Authority observed that despite entering into an agreement for sale on January 14, 2020, to hand over possession of the flat by March 2021 (with a six-month grace period), the builder failed to fulfill the terms by not handing over possession to the homebuyer to date. The Authority further noted that the builder was supposed to provide possession by September 2021, including the grace period. However, even after receiving a substantial amount from the homebuyer, the builder failed to do so. Therefore, the homebuyer is entitled to receive interest under Section 18(1) of the Real Estate (Regulation & Development) Act, 2016. The Authority relied on the Supreme Court decision in M/s Newtech Promoters and Builder Pvt. Ltd vs. State of Uttar Pradesh & Ors (LL 2021 SC 641), wherein it was held that if the Promoter fails to give possession of the apartment, plot, or building within the time stipulated under the terms of the agreement, then the Allottees' right under the Act 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. 10,00,378/- to the homebuyer as interest for the delay in handing over possession of the flat, within 60 days. Case – Madhuparni Roy Versus Shrivision Towers Private Ltd. Citation – Complaint No: 00761/2023

Karnataka RERA Orders Shrivision Towers To Pay Interest To Homebuyer For Delayed Possession

Aryan Raj

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Karnataka RERA Orders Shrivision Towers To Pay Interest To Homebuyer For Delayed Possession

Aryan Raj

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