In a landmark judgment, the Karnataka Real Estate Appellate Tribunal (REAT) has ordered Sterling Urban Developers Pvt Ltd to hand over the long-overdue possession of a villa to 73-year-old Devki Nandan from Gurugram. This decision brings long-awaited relief after a 12-year delay in a real estate transaction marred by persistent delays, legal ambiguities, and alleged misconduct by the developer.
Background: The Long Wait for a Dream Home
Devki Nandan, a retired professional from Haryana, entered into an agreement with Sterling Urban Developers on September 6, 2012, to purchase Villa C-92 in a premium gated community near Whitefield-Hoskote Road, Bengaluru. Priced at Rs 3.2 crore, the villa was expected to be handed over by December 2013, as per the agreement. However, despite having signed the absolute sale deed on January 27, 2014, Devki never received physical possession of the property.
Even though a possession letter was issued on April 24, 2013, Devki claimed this was a mere formality for the builder’s tax or compliance purposes. “It did not reflect actual handover or readiness of the property,” he told the tribunal. Over the next few years, he made several attempts to get clarity but received only vague or misleading responses from the developer.
Devki made payments until March 18, 2017, eventually exceeding the agreed value of Rs 3.2 crore. Yet, his dream villa remained just that — a dream.
RERA Dismissal and Legal Setback
On January 6, 2021, Devki filed a formal complaint before the Karnataka Real Estate Regulatory Authority (RERA). He demanded immediate possession, waiver of maintenance charges for the delay period, and compensation for mental harassment. However, on May 2, 2023, RERA dismissed the case.
RERA cited that the developer had obtained a partial occupancy certificate (OC) on January 20, 2017, and deemed the project completed by March 27, 2017, which preceded the enforcement of the Real Estate (Regulation and Development) Act, 2016. Therefore, it declared the complaint “not maintainable.”
Appeal and REAT’s Verdict
Challenging the RERA dismissal, Devki approached the Karnataka Real Estate Appellate Tribunal. His legal team argued that a partial OC cannot signify full project completion, and critical infrastructure and development obligations remained unmet, violating the original sanctioned plan.
Sterling Urban Developers maintained their position that the project was completed prior to the applicability of the RERA Act and claimed the tribunal had no jurisdiction over the matter.
However, the tribunal found merit in the allottee’s arguments, concluding that all conditions under the sanctioned plan were not fulfilled, and the issuance of a partial OC was insufficient to declare the project complete.
On April 8, 2025, REAT overturned the RERA decision, ordering the developer to:
- Handover physical possession of Villa C-92 within one month
- Pay delay interest calculated at the State Bank of India’s highest marginal cost of funds-based lending rate (MCLR) plus 2%
- Bear all maintenance dues for the entire delay period
Significance of the Verdict
This case sets a crucial precedent for countless homebuyers left stranded by builders citing technicalities to escape accountability. The ruling reinforces that issuance of a partial OC does not equate to completion and that possession implies actual and physical transfer of property, not just documentation.
