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By Staff Member

In a recent ruling, the Karnataka Real Estate Regulatory Authority (KRERA) has clarified that developers cannot claim pending dues or delay interest from homebuyers unless they furnish valid documents, including building plans and project clearances. The ruling came as a result of a case involving a homebuyer at Provident Park Square 5, a project by Puravankara Limited.

The homebuyer, Mary Joghul, had booked an apartment in the project in November 2019, with an expected handover date of December 2024. However, when the developer failed to provide updated documents, including floor plans and elevation plans, the homebuyer ceased making payments beyond 2022. Seeking relief, she approached KRERA to request that the developer refrain from demanding further payments until the necessary documents were furnished and to waive the delay interest.

KRERA’s investigation revealed that many of the documents provided by the developer, such as the Bengaluru Development Authority (BDA) modification plan and elevation plan, had either expired or were invalid. Notably, the floor plan and elevation plan were valid only until 2018, with the requirement for a revised plan if the project did not commence within the validity period. Additionally, the modified BDA plan issued in 2017 was valid only until 2019.

The homebuyer’s advocate, Gautam Basu, argued that the developer had provided necessary documents for Provident Park Square Phase 1 before collecting advance payments for Phase 5.

In response, the developer denied the allegations, claiming that the project was ongoing and did not fall under delayed compensation or other clauses stipulated by the RERA Act.

KRERA’s ruling emphasized that most of the documents provided by the developer at the time of the agreement signing in 2019 had already expired. The Authority concluded that it was just and fair for the homebuyer to settle pending dues only after the developer furnished valid documents. Additionally, the developer was prohibited from collecting delayed interest from the homebuyer until the necessary documents were handed over.

This ruling underscores the significance of transparency and compliance with RERA regulations in real estate transactions, ultimately safeguarding the rights and interests of homebuyers.

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