A Bengaluru resident, Shreyanshu Pavas, won a significant victory from the Karnataka Real Estate Regulatory Authority (KRERA), receiving INR 48.4 lakh compensation for a seven-year delay in the possession of his apartment. Mr. Pavas had booked a flat in Mantri Webcity 2A on Hennur Road in 2013, expecting completion by 2016. Despite paying over INR 63 lakh, he faced immense inconvenience and financial loss due to the delay. KRERA ruled in his favour, emphasising the developer's failure to honour contractual agreements, highlighting RERA's crucial role in protecting home buyers' rights in India.
A Bengaluru resident, Shreyanshu Pavas, has been awarded a significant victory by the Karnataka Real Estate Regulatory Authority (KRERA). Mr. Pavas will receive INR 48.4 lakh, more than half the total cost of his apartment, as compensation for seven-year delay in possession.
The dispute stemmed from the delayed handover of an apartment in Mantri Webcity 2A, located on Hennur Road. Mr. Pavas booked the flat in 2013 with a promised completion date of 2016. However, despite waiting for seven years, Mantri Developers, the project builder, failed to deliver the apartment.
Mr. Pavas informed KRERA that he had already paid over INR 63 lakh towards the apartment. This delay not only caused immense inconvenience but also resulted in financial loss. He argued that he could have potentially earned a rental income of INR 35,000 per month by leasing out the apartment. Additionally, Mr. Pavas highlighted that his repeated inquiries about the project's status went unanswered by Mantri Developers.
Mantri Developers, in their defence, contended that Mr. Pavas had only made a partial payment. They further attributed the delay to unforeseen circumstances beyond their control, such as the demonetization of high-value currency notes in 2016, a shortage of raw materials, and ongoing legal disputes. The developer also requested an additional extension from KRERA to complete the project.
KRERA, after reviewing the case, ruled in favour of Mr. Pavas. The authority noted the developer's failure to respond to Mr. Pavas' inquiries and emphasised the importance of honouring contractual agreements. KRERA highlighted the significant delay caused by Mantri Developers, which breached the promised handover date by seven years.
Taking these factors into account, KRERA directed Mantri Developers to pay INR 48.4 lakh to Mr. Pavas as compensation for the delay period between 2016 and 2024. Additionally, KRERA instructed the developer to hand over possession of the apartment to Mr. Pavas within 60 days of the order dated June 18, 2024.
This case highlights the crucial role of RERA in protecting home buyers' rights in India. RERA provides a platform for homebuyers to seek redressal in case of disputes with developers, particularly regarding delays or incomplete projects. This empowers homebuyers to fight for fair compensation and hold developers accountable for their actions. Homebuyers are encouraged to understand their rights under RERA and actively engage with the regulatory body in case of any issues with their property purchase.
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