Poonam Prabhu has been awarded INR 4.2 crore in compensation by the Karnataka Real Estate Regulatory Authority (KRERA) after Embassy One Developers failed to deliver her luxury apartment on time. Ms. Prabhu purchased the apartment for INR 7.8 crore in 2016, with an expected handover date in 2018. However, the apartment remained incomplete as of June 2024. KRERA ordered the developer to compensate for the delay and imposed additional interest for further delays. Embassy Group has challenged this decision in the Karnataka High Court, obtaining a temporary stay. This case emphasises the importance of RERA in safeguarding homebuyers' rights and ensuring project accountability.
A Bengaluru homebuyer has secured a significant compensation award for a major delay in the completion of their luxury apartment. The Karnataka Real Estate Regulatory Authority (KRERA) ruled in favour of Poonam Prabhu after Embassy One Developers, a subsidiary of the well-known Embassy Group, failed to deliver the apartment five years after the promised handover date.
Ms. Prabhu booked an apartment in the upscale Embassy One project for a substantial sum of INR 7.8 crore (approximately USD 1.1 million USD) back in 2016. The agreed-upon date for her to take possession of the apartment was in 2018. However, even after six years - in June 2024 - the apartment remained incomplete and unavailable for occupancy.
KRERA stepped in and ordered Embassy One Developers to pay Ms. Prabhu INR 4.2 crore (approximately USD 600,000 USD) in compensation for the delay. This amount represents the delayed possession charges calculated from the originally promised handover date in 2018 until the actual handover takes place. KRERA further stated that the developer will be liable to pay additional interest for any further delays in completing the project.
Embassy Group has challenged KRERA's order in the Karnataka High Court and has been granted a temporary stay on the compensation payment until further court proceedings take place. The company spokesperson has declined to comment on the specifics of the case but emphasised that the matter is ongoing in court.
Embassy One is a high-end residential project situated in north Bengaluru. Spanning over six acres, the project boasts 109 luxury apartments with configurations ranging from 1 to 5 bedrooms, catering to a discerning clientele.
According to Karnataka RERA documents, the Embassy One project was registered with the authority in 2019. The initial deadline for project completion was extended by nine months in 2020 due to the disruptions caused by the COVID-19 pandemic. However, with construction still incomplete, KRERA granted a further extension until 2026 in March 2024. This case highlights the crucial role played by RERA in protecting homebuyers' rights and ensuring timely project completion by developers. It also underscores the ongoing challenges faced by the real estate sector, even for luxury developments.
This case serves as a valuable reminder for homebuyers in India to be fully aware of their rights under RERA. The authority offers a platform for resolving disputes with developers and provides compensation for delays in project completion. By being aware of their rights and utilising RERA as a resource, homebuyers can take a proactive approach to protecting their investments.
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