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Builder Directed to Complete Project, Provide OCs & Compensate Buyers

TS RERA norms violation penalty

In a landmark order, the Real Estate Regulatory Authority (RERA) has ruled in favour of a group of homebuyers from a long-delayed Whitefield housing project. The authority directed the developer to finish all pending works, hand over occupancy certificates (OCs), and compensate the buyers for the years of delay, incomplete amenities, and deviation from promises. The verdict comes after nearly a decade of legal uncertainty and hardship for buyers who booked flats in 2014-15.

Background of the Case
The homebuyers had invested in the project during its pre-launch phase, lured by offers and promises of delivery within 36–42 months, plus a six-month grace period. This meant possession was expected around mid-2017. However, the project faced repeated delays, revised deadlines, and incomplete handovers. Despite pressure from residents, only partial possession was given in phases, and even then, crucial infrastructure and amenities were missing.

Key Issues Faced by Buyers
The residents highlighted a series of grievances, including:

By 2022, frustrated buyers formed an association to pursue collective legal action. They presented evidence including allotment letters, emails, photographs, site inspection reports, and builder communications.

Builder’s Defence
In response, the builder argued that the delays were caused by external factors such as labour shortages during the Covid-19 pandemic, supply chain disruptions, changes in government policies, and rising costs. He claimed that most amenities were “substantially complete” and insisted that phased possession was offered in good faith. The builder also denied allegations of plan violations.

RERA’s Findings
After reviewing buyer testimonies, inspection reports, and contractual agreements, the RERA bench concluded that the delays and incomplete works were attributable to the developer and not due to unavoidable circumstances. The authority noted the failure to meet the agreed possession date and pointed out that statutory compliances, including OCs, were still pending years later.

The July 21 RERA Order
The RERA authority issued a strong order, directing the builder to:

The buyers’ association has formed a monitoring committee to track the builder’s compliance with the order.

Homebuyers’ Perspective
Ragunathan K.C., president of The Greens Buyers Association, shared his plight:
“I have been burdened with paying both home loan EMIs and rent for the house we are currently living in, while more than Rs 20 lakh of my hard-earned money remains stuck with the builder. Despite multiple letters and follow-ups, there was no response, leaving us with no choice but to approach the authorities.”

Conclusion
This case highlights the crucial role of RERA in protecting homebuyers from exploitation and ensuring accountability in the real estate sector. With the order, the affected residents now hope to finally receive what they were promised nearly a decade ago—a completed project with legal occupancy and basic amenities.

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