The Supreme Court is hearing a case regarding delayed possession of flats in Mantri Serenity, a project in Bengaluru by Mantri Castles Private Ltd. While the developer claims to have offered possession, Moneycontrol found that several flats still lacked occupancy certificates (OC). On April 30th, the Court took up the issue based on submissions from homebuyers' counsel representing 48 buyers who booked flats between 2013-2016 for INR 75-95 lakh but did not receive possession as promised between 2015-2019. While the interim order in November directed the developer to hand over possession, the developer did so without necessary OC. The Court's latest status quo order prevents further unilateral actions until the developer demonstrates fulfillment of all legal requirements to offer rightful possession to the homebuyers.
In a recent hearing before the Supreme Court, Bengaluru-based developer Mantri Castles Private Ltd claimed that it had offered possession to buyers of apartments in its delayed Mantri Serenity project. However, Moneycontrol found that several units still lacked the necessary occupancy certificates (OCs).
According to rules under RERA and the bylaws of the Bruhat Bengaluru Mahanagara Palike (BBMP), the city's municipal corporation, OCs are mandatory before possession can be given. Towers 4 and 5 have partial OCs from the Bengaluru Development Authority (BDA), while towers 1 and 3 have no OCs.
On April 30th, the Supreme Court took up the issue based on submissions by Senior Counsel Bishwajit Bhattacharyya, representing the homebuyers. Around 48 homebuyers from the delayed project had approached the SC after the developer failed to offer possession between 2015 and 2019 as promised.
While the company told the court on April 2nd that possession letters had been issued to all buyers, several buyers had still not taken possession of their units. In response, the court ordered the homebuyers to inspect the project on April 16th and accept possession from the developer.
However, it was found that at least three homebuyers who visited were offered possession even though the apartments lacked OCs. Thus, homebuyers could not take possession on April 16th.
One homebuyer mentioned that despite the SC's order, the developer had unilaterally cancelled his agreement. During the April 30th hearing, the developer told the SC the unit was still available for possession. The apex court has now ordered status quo on the apartment until further notice.
The buyers had initially approached the National Consumer Disputes Redressal Commission (NCDRC) when the developer failed to deliver on time as promised between 2015-2019. Based on the NCDRC's advice, 48 buyers who booked flats between 2013-2016 for INR 75-95 lakh, approached the Supreme Court.
In November 2023, the SC passed an interim order directing the developer to hand over possession of Mantri Serenity to homebuyers. The developer has still not complied despite most buyers paying around 100% of the cost.
The ongoing back-and-forth in the Supreme Court highlights the plight of homebuyers in delayed projects and the need for strict compliance with regulatory rules. While the interim order in November directed the developer to hand over possession, the developer has not complied, leaving buyers in limbo. The Court's latest status quo order prevents further unilateral actions until the developer demonstrates fulfillment of all legal requirements to offer rightful possession to the homebuyers.
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