Karnataka RERA Orders Refund of Rs 82 Lakhs to Homebuyer Due to Delay in Possession
Karnataka Real Estate Regulatory Authority directs Ozone Urbana Infra to refund Rs 82 lakhs to homebuyer for failing to provide possession of flat on time.
Karnataka ReraOzone Urbana Infra DevelopersReal Estate RegulationDelay In PossessionRefund To HomebuyerReal EstateJul 13, 2024
The homebuyer had purchased a flat in Ozone Urbana Infra's project, Urbana Avenue, which is part of the integrated township project Ozone Urbania. According to the agreement, the builder was supposed to hand over the flat by December 2022, with a 6-month grace period. However, despite paying Rs 56,28,790 out of the total cost of Rs 66,17,808, the builder failed to provide possession of the flat on the promised date.
The homebuyer contended that the builder had repeatedly delayed the possession handover date, had not provided any updates on the project, and had stopped communicating with them, leaving them uncertain about the flat's possession date. Aggrieved by the delay, the homebuyer decided to withdraw from the project and filed a complaint before the authority seeking a refund with interest.
Observation and Direction by the Authority
The authority observed that despite entering into a contract to hand over the flat to the homebuyer by June 2023 (including the grace period) and receiving a significant amount of money, the builder had failed to follow the terms of the agreement and had not handed over possession of the flat. Therefore, the authority held that the homebuyer was entitled to a refund of the entire amount with interest.
The authority referred to the Supreme Court's decision in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors, 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.
The authority also referred to the Supreme Court's 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 82,58,652 to the homebuyer within 60 days.
Karnataka Real Estate Regulatory Authority (RERA) is a statutory body established under the Real Estate (Regulation and Development) Act, 2016 to regulate and promote the real estate sector in Karnataka. Ozone Urbana Infra Developers is a prominent real estate developer in Karnataka known for its integrated township projects.
Frequently Asked Questions
What was the issue in the case?
The builder, Ozone Urbana Infra Developers, failed to provide possession of the flat to the homebuyer on time, despite receiving a significant amount of money.
What was the agreed-upon possession date?
The builder had agreed to hand over the flat by December 2022, with a 6-month grace period.
How much did the homebuyer pay to the builder?
The homebuyer had paid Rs 56,28,790 out of the total cost of Rs 66,17,808 to the builder.
What was the authority's decision in the case?
The Karnataka RERA directed the builder to refund Rs 82,58,652 to the homebuyer within 60 days.
What is the significance of this verdict?
This verdict sets a precedent for homebuyers who have been affected by delays in possession and highlights the importance of timely completion of projects by builders.
Tags:
Related News Articles
Vijay Kedia's Melodic Plea: Ease the Dividend Tax Burden on Indian Investors
Market expert Vijay Kedia's unique appeal to FM Nirmala Sitharaman to reconsider dividend tax burden on investors
NBCC Announces 1:2 Bonus Share Issue, Utilizes Rs 90 Crore Free Reserve
NBCC India Ltd has announced a bonus share issue in the ratio of 1:2 to eligible shareholders, utilizing Rs 90 crore from its free reserves. The company has a robust order book of over Rs 81,300 crore and is strategically focused on redevelopment, PSU lan
Mixed-Use Developments: Shaping the Future of Commercial Real Estate
The backbone of the significant transformation in India's commercial real estate market is mixed-use development, which is expected to drive the future of the industry.
RERA Orders Refund and Penalty for Developer’s Violation of Real Estate Laws
The Telangana State Real Estate Regulatory Authority (RERA) has directed Bhuvanteza Infra Projects Pvt. Ltd to refund Rs 32 lakh to a homebuyer along with 11.05% annual interest. Additionally, a penalty of Rs 11.46 lakh was imposed on the developer for vi
Insomniacs Unveils ACX Convo AI: Revolutionizing Real Estate Pre-Sales with Cutting-Edge AI
Insomniacs, a leader in real estate marketing and technology, has launched ACX Convo AI, a groundbreaking AI-driven solution to transform the pre-sales process in the real estate industry.
UltraTech Cement Expands into Wires and Cables with ₹1800 Crore Investment
UltraTech Cement, India’s leading cement manufacturer, is set to enter the wires and cables market with an investment of ₹1800 crore, aiming to commence operations by December 2026. The move is part of the company’s broader strategy to expand its presence