The Karnataka Real Estate Regulatory Authority (K-RERA) has ordered a builder to pay back Rs 2.56 crore to a homebuyer. The buyer had to wait over five years for possession of an apartment in Bengaluru, which was not delivered on time.
The homebuyer booked an apartment in Mantri Webcity 2A in April 2015. A sales agreement was signed on April 17, 2015, with a total price of Rs 14,615,251. The agreement said possession would be given by March 31, 2017.
The builder failed to meet this deadline. Years passed without the homebuyer receiving the apartment or any update about a new delivery date. The buyer sought a refund plus interest through K-RERA.
K-RERA examined the documents and confirmed the builder had not kept promises. The authority noted that the builder promised delivery by December 2018, including a grace period. Yet, after 60 months, the apartment was still not handed over.
In its order, K-RERA required the builder to return Rs 14,615,251 paid by the homebuyer. An additional Rs 12,708,927 interest was added. The total amount due is Rs 25,647,520.
The order states the refund must be completed within 60 days of receiving the notice. If the builder does not pay, the homebuyer can start recovery actions under Section 40 of the RERA Act. This allows the buyer to recover the money as a land revenue Arrears through the Deputy Commissioner of the district.