In a landmark judgment offering much-needed hope to homebuyers embroiled in prolonged property disputes, the Karnataka Real Estate Regulatory Authority (K-RERA) has ordered Mantri Developers to pay ₹2.56 crore as compensation to homebuyer who waited nearly a decade without getting possession of his flat.
The case centers around Ananth Ramachandran, a resident of Cox Town, Bengaluru, who had booked a flat in the Mantri Webcity project under a pre-EMI scheme in March 2014. Ramachandran paid ₹15 lakh upfront and availed a home loan of ₹65 lakh from a bank. As per the tripartite agreement signed between the buyer, the builder, and the bank, Mantri Developers was responsible for paying the pre-EMIs until the agreed possession date — March 31, 2017.
Builder Failed to Honour Agreement
Despite clear terms in the agreement, the builder failed to complete the construction and hand over the flat by the stipulated deadline. Furthermore, Mantri Developers ceased paying the pre-EMIs, shifting the financial burden entirely onto the buyer. With no flat in possession and continuous EMI payments, Ramachandran found himself in a deeply stressful financial situation and decided to approach K-RERA for redressal.
K-RERA’s Verdict and Key Highlights
A bench led by K-RERA member G.R. Reddy took up the case and thoroughly reviewed the evidence and circumstances. It concluded that the builder had clearly violated the terms of the agreement and failed to meet its obligations under the Real Estate (Regulation and Development) Act, 2016.
K-RERA directed the builder to:
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Pay ₹2.56 crore as compensation to the buyer, which includes the interest on payments made.
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Take over the remaining outstanding home loan and ensure it is cleared.
In its defence, Mantri Developers had cited numerous reasons for the delay, including:
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Licensing and legal hurdles
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Natural calamities (rains and flooding)
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Demonetisation and GST rollout
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Labour shortage and increased costs of construction materials
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COVID-19 pandemic
However, K-RERA dismissed all these justifications. It emphasized that the project deadline was March 2017, while the pandemic only began in 2020 — making the COVID-related excuse irrelevant. The other reasons were also ruled insufficient to justify the delay or the builder’s failure to honour the pre-EMI clause.
A Message to the Real Estate Industry
This ruling has been lauded as a milestone in homebuyer rights protection. It reinforces the purpose of RERA, which was enacted to ensure transparency, accountability, and justice in the real estate sector. Legal experts believe that this verdict will serve as a precedent in similar cases where builders fail to deliver possession despite binding agreements.
Consumer activists have welcomed the decision, stating that it instills renewed confidence in regulatory bodies and empowers buyers to hold powerful builders accountable.
