The Karnataka Real Estate Regulatory Authority (Karnataka RERA) has directed Ozone Urbana Infra Developers to refund ₹1.08 crores to a homebuyer after failing to deliver possession of a flat within the promised timeline. The order was passed by a bench comprising Neelmani N Raju (Member) in favor of the homebuyer, citing a breach of agreement and non-compliance with the stipulated possession deadline.
The Case
The homebuyer, a retiree, invested his retirement savings to purchase a flat in the developer’s Urbana Avenue project in Bengaluru Rural District. Initially, the homebuyer booked Flat No. 401 in Block B for a total sale consideration of ₹72.19 lakhs in March 2018. However, dissatisfied with the lack of adequate light and ventilation, he switched to Flat No. 403 in Block P, priced at ₹76.18 lakhs.
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Subsequently, due to project delays, the homebuyer opted for another flat, Flat No. 502 in Block D, which cost ₹78.26 lakhs. The agreement promised possession by June 2023, but the builder failed to deliver the flat, leaving the homebuyer aggrieved.
Homebuyer’s Complaint
The homebuyer filed a complaint before Karnataka RERA, seeking a refund of the amount paid to the developer, along with interest. He argued that his intent was to secure a peaceful retirement in a green, pollution-free area, but the delay in possession disrupted his plans.
Karnataka RERA’s Observation
The Authority found that the developer violated the agreement terms by failing to hand over possession despite receiving the full payment. Referring to the Supreme Court’s ruling in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh, Karnataka RERA emphasized that a homebuyer’s right to seek a refund under Section 18(1) of RERA, 2016 is unconditional if the builder fails to deliver on time.
Final Order
Karnataka RERA allowed the homebuyer to withdraw from the project and directed the builder to refund ₹1,08,42,236/- within 60 days. The ruling reinforces RERA’s commitment to protecting homebuyers’ rights against project delays.
