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The Karnataka Real Estate Regulatory Authority (K-RERA) directed a Bengaluru builder to refund a homebuyer with interest after failing to deliver possession despite executing two sale agreements. The complainant had paid an advance and availed a housing loan, and later agreed to an alternative flat based on the builder's assurances. K-RERA found the claim genuine, noting delays beyond the promised delivery date and failure to register the sale deed. The order highlights ongoing double sale issues in Karnataka and underlines RERA's active role in protecting buyers interests and enforcing refunds with interest.
A Bengaluru homebuyer recently received relief from K-RERA after the builder failed to hand over possession despite signing two separate sale agreements and collecting substantial payments. The complainant, Sudhir, had initially paid an advance of INR 5,50,000 and availed a housing loan of INR 28,00,000 from LIC Housing Finance, agreeing to pay the remaining amount during registration. Later, the builder offered an alternative 3BHK flat for INR 48,00,000, assuring that all formalities, including loan transfer, would be handled. Relying on this, the complainant executed a cancellation deed for the earlier flat and entered a fresh sale agreement dated August 20, 2022. Advertisement
According to K-RERA, the builder had agreed to complete construction and deliver possession within six months but failed to do so. Even after the agreed delivery period and grace period ending February 19, 2023, the builder did not hand over possession or execute the registered sale deed. The regulatory authority noted that despite multiple opportunities, the builder did not provide a memo of calculation or appear before the authority when summoned.
After examining the complaint and supporting documents, K-RERA concluded that the claim was genuine and directed the respondents Sri Vanishelters, LS Srinidhi, B Kenchappa Gowda, and G Vidyavathi to refund INR 32,94,816 with interest. The interest is calculated at SBI's marginal cost of funds-based lending rate plus two percent from February 14, 2020, to June 12, 2025, and from June 13, 2025, until the amount is realized. The authority also permitted recovery action if the refund is not paid within 60 days.
This ruling underscores ongoing challenges in Karnataka's real estate sector, particularly issues of double sales and delayed possession. K-RERA continues to play a crucial role in ensuring that buyers receive refunds with interest and that developers are held accountable under the RERA framework.
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