In a significant decision, the Karnataka Real Estate Regulatory Authority (K-RERA) has ordered GVG Infrastructure Pvt. Ltd. to refund the amount paid by a homebuyer along with interest. The builder failed to provide possession of the flat within the stipulated time frame as per the agreement. This decision underscores the authority’s commitment to protecting the rights of homebuyers and enforcing compliance among builders.
The case revolves around the project “Malberry Mist” by GVG Infrastructure Pvt. Ltd. The homebuyer booked a flat on the ground floor, including two car parking spaces, and signed both a construction agreement and a sale agreement with the builder on August 25, 2018. An advance payment of Rs. 23,21,526 was made against the total sale price of Rs. 84,39,760.
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As per the agreement, the builder was obligated to complete the project and hand over possession within 12 months. However, the builder failed to meet this deadline, and to date, the flat remains incomplete. Frustrated by the lack of progress, the homebuyer approached K-RERA, seeking a refund with interest.
Authority’s Observation and Direction
The K-RERA bench, comprising GR Reddy (Member), observed that the builder had failed to adhere to the terms of the sale agreement despite receiving a substantial advance payment. The authority referred to a Supreme Court ruling in M/s Newtech Promoters and Developers Pvt. Ltd vs. State of Uttar Pradesh & Ors, which affirmed that homebuyers have an unconditional right to seek a refund or claim interest for delays in possession under the RERA, 2016.
In light of this, K-RERA directed GVG Infrastructure Pvt. Ltd. to refund Rs. 34,77,086 (including interest) to the homebuyer within 60 days. This decision emphasizes the importance of accountability and timely completion of real estate projects.
Conclusion
This ruling by Karnataka RERA is a reminder to builders about the importance of adhering to contractual obligations. It reinforces the legal protections available to homebuyers under the RERA, 2016, and ensures that their investments are safeguarded against undue delays and non-compliance by builders.