In a recent development, the Karnataka Real Estate Regulatory Authority (KRERA) has ordered Suvilas Properties, a subsidiary of Bengaluru-based real estate giant Shriram Properties Ltd (SPL), to refund the entire booking amount to a buyer after providing misleading information regarding a project.
The Case
The issue arose when Suvilas Properties, a subsidiary of Shriram Properties, sold an apartment worth Rs 1.2 crore to a buyer, claiming that the high-rise building would have 27 floors with RERA approval. However, upon investigation, it was revealed that the project only had 20 floors, contrary to the information provided.
KRERA’s Order
KRERA, upon hearing the case, ordered Suvilas Properties to refund the booking amount of Rs 50,000 along with interest to the buyer, Amitkumar Kuhikar. The authority noted that despite repeated reminders, the developer failed to refund the amount, leading to the issuance of the order.
Developer’s Response
Despite assurances from the developer that the project would receive RERA approval for 27 floors, no concrete timeline was provided. Consequently, Kuhikar decided to cancel the booking and seek a refund of the amount paid.
Previous Instances
This is not the first instance of Shriram Properties facing scrutiny from KRERA. In a similar case last year, the developer failed to register a sale agreement as required under the RERA Act, leading to an order for the refund of the entire amount with interest.
Acquisition by Shriram Properties
In November 2022, SPL acquired 100 percent equity of Suvilas Realities Private Ltd, further expanding its presence in the real estate market. The acquisition allowed SPL to secure two delayed projects in Bengaluru, facilitating the development of 0.65 million square feet with a potential revenue of Rs 400 crore.
Conclusion
The case serves as a reminder of the importance of transparency and accountability in the real estate sector. Buyers must be provided with accurate information to make informed decisions, and developers must adhere to regulatory requirements to avoid legal consequences. KRERA’s order underscores its commitment to protecting the interests of homebuyers and ensuring compliance with RERA regulations.
