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The Karnataka Real Estate Regulatory Authority (KRERA) has ordered Embassy One Developers Pvt Ltd, a subsidiary of Bengaluru-based Embassy Group, to pay a substantial compensation of Rs 4.2 crore to homebuyers. This decision comes after the developer failed to deliver possession of a luxury project in north Bengaluru, five years past the agreed handover date.

Delayed Compensation for Homebuyers

KRERA’s ruling requires Embassy One Developers to pay the compensation from the date of the promised handover to the date of possession. Furthermore, the developer will have to pay interest for any additional delays in completing the project. The authority noted that the developer did not file objections despite being granted three months by KRERA, leading to this decision.

Luxury Project Embassy One

Embassy One is a premium luxury project located in north Bengaluru, spanning over six acres and featuring 109 apartments in two towers. The units offer 1-5 BHK options and were initially scheduled for handover in 2018. However, the developer has yet to deliver possession even six years after the promised date.

Poonam Prabhu’s Case

Homebuyer Poonam Prabhu booked an apartment in Embassy One for Rs 7.8 crore in 2016. The failure to deliver possession prompted Prabhu to seek compensation according to Section 18 of the RERA Act. KRERA’s order acknowledged the significant amount paid by Prabhu and the delay in handing over the apartment, resulting in the compensation ruling.

Embassy Group’s Response

An Embassy Group spokesperson stated that the company has challenged the KRERA order in the Karnataka High Court and obtained an interim stay until further notice. The remainder of the matter is currently sub judice.

RERA Registration and Complaints

According to Karnataka RERA documents, the RERA registration period for Embassy One was 2019. The authority granted an extension until 2026 due to the Covid-19 pandemic and the developer’s inability to complete the project on time. Data from the authority shows that Embassy Group currently faces over 11 complaints in Bengaluru, with a majority settled out of court.


KRERA’s decision to impose a hefty compensation on Embassy Group for the delay in their luxury Bengaluru project sets a precedent for developers to adhere to timelines and ensure transparency in their dealings with homebuyers. The case highlights the importance of regulatory authorities in protecting homebuyers’ interests and enforcing accountability in the real estate sector.

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