In a landmark decision, the Karnataka Real Estate Regulatory Authority (Karnataka RERA) has directed a builder to refund the amount paid by a homebuyer for a flat. This ruling comes after the builder failed to hand over possession of the property even after a lapse of more than six years and neglected to pay Pre-EMIs to the bank, causing significant inconvenience to the homebuyer.
The case revolves around a homebuyer who entered into an agreement to purchase a flat from the builder in 2014. Despite assurances of timely possession, the builder failed to deliver the apartment unit by the agreed-upon deadline of 2016. Additionally, the builder defaulted on pre-EMI payments, exacerbating the homebuyer’s financial burden.
Builder’s Obligations:
Under the pre-EMI scheme offered by the builder, homebuyers were promised pre-sanctioned loans to facilitate apartment purchases. However, the builder failed to honor this commitment, leading to dissatisfaction among buyers. Despite repeated reminders and notices, the builder did not fulfill their obligations, prompting the homebuyer to seek recourse through Karnataka RERA.
Authority’s Observations and Direction:
After careful consideration, Karnataka RERA observed the builder’s persistent failure to fulfill contractual obligations, including possession of the property and pre-EMI payments. Citing relevant legal precedents and provisions under the Real Estate (Regulation and Development) Act, the Authority unequivocally ruled in favor of the homebuyer.
Legal Precedents and RERA Provisions:
Drawing from the Supreme Court’s ruling in similar cases, Karnataka RERA affirmed the homebuyer’s right to seek refund or claim interest for delayed possession. The Authority emphasized Section 18 of the RERA, which mandates builders to refund amounts received from buyers if possession is not provided as per the agreement terms.
Directive and Relief for Homebuyer:
In light of the builder’s persistent non-compliance and the homebuyer’s rightful claim, Karnataka RERA ordered the builder to refund a substantial sum, totaling Rs. 1,00,16,869, along with interest within 60 days. This decision reaffirms Karnataka RERA’s commitment to protecting the interests of homebuyers and ensuring accountability in the real estate sector.
Conclusion: The Karnataka RERA’s directive to refund the homebuyer underscores the importance of adherence to contractual obligations and timely possession in the real estate industry. This ruling serves as a precedent for similar cases and reinforces the principle of consumer protection under RERA. Moving forward, it is imperative for builders to prioritize transparency and compliance to avoid legal repercussions and safeguard the interests of homebuyers.
