Builder Held Accountable: Karnataka RERA Orders Ozone Infra Developers to Pay Interest and Hand Over Possession
Karnataka Real Estate Regulatory Authority directs Ozone Infra Developers to pay interest to homebuyer for delay in handing over possession of flat.
Karnataka ReraOzone Infra DevelopersReal EstateDelayed PossessionInterestReal EstateJul 13, 2024
The homebuyer had purchased a flat in the builder's project, Urbana Prime, for Rs. 49,21,473/-, with a sale agreement signed on May 15, 2019. As per the agreement, the builder was supposed to deliver the flat by June 2021, with a grace period until December 2021. However, despite receiving a substantial amount of Rs. 40,27,933/- from the homebuyer, the builder failed to deliver the flat on time.
The homebuyer contended that this delay caused significant financial loss and mental distress, leading to the filing of a complaint with the authority seeking interest for the delayed possession. The authority observed that the builder had failed to fulfill the agreement's terms despite receiving a substantial amount, and therefore, directed the builder to pay Rs. 10,34,519/- as interest for the delayed possession from December 31, 2021, to June 25, 2024.
The 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), which held that if a promoter fails to give possession of an apartment, plot, or building within the time stipulated under the terms of the agreement, then the allottee's 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.
information The Karnataka RERA was established under the Real Estate (Regulation and Development) Act, 2016, to regulate the real estate sector and protect the interests of homebuyers.
Ozone Infra Developers Private Limited is a real estate development company that has been involved in several projects in Karnataka.
Keywords Karnataka RERA, Ozone Infra Developers, real estate, delayed possession, interest, homebuyer, Urbana Prime.
Frequently Asked Questions
What was the original possession date promised by the builder?
June 2021, with a grace period until December 2021.
How much did the homebuyer pay to the builder?
Rs. 40,27,933/-
How much interest did the authority direct the builder to pay to the homebuyer?
Rs. 10,34,519/-
What was the Supreme Court decision referenced by the authority in its ruling?
M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors (LL 2021 SC 641)
What is the case number of the complaint filed by the homebuyer?
Complaint No: 01249/2023
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