The Karnataka Real Estate Regulatory Authority (KRERA) has mandated GVG Infrastructure Pvt Ltd to refund INR 34.7 lakh to homebuyer Dhimosh Mangadan for failing to complete the Mulberry Mist project in Varthur, Bengaluru, on time. Despite an August 2019 deadline, the project remains unfinished. KRERA's order, issued on July 10, also demands an additional INR 11.5 lakh in interest. This case highlights Bengaluru's real estate issues, with over 26,030 delayed housing units valued at INR 28,072 crore. Across India, approximately 5 lakh homes are stalled, emphasising the need for stricter enforcement of developer accountability.
The Karnataka Real Estate Regulatory Authority (KRERA) has ordered a Bengaluru developer to return INR 34.7 lakh to a homebuyer after failing to deliver a promised housing project on time. The developer, GVG Infrastructure Pvt Ltd, was supposed to complete the Mulberry Mist project located in Varthur by August 2019. However, the homebuyer, Dhimosh Mangadan, and his partner, Jipsy Simon, found the project far from completion even after more than four years.
The KRERA ruling, dated July 10, emphasises the responsibility of developers to meet contractual deadlines. The authority noted that the developer received a significant payment but failed to fulfil the terms of the sale agreement. As a result, KRERA has instructed the company to refund the full amount along with interest, totaling INR 11.5 lakh, within two months and to cancel the sale agreement post-refund.
This incident reflects a growing concern in Bengaluru's real estate sector. Currently, there are over 26,030 delayed housing projects in the city, with an estimated total value exceeding INR 28,072 crore. Many of these projects are years behind schedule, causing frustration among homebuyers and impacting the overall housing market.
According to a report by real estate consultancy Anarock, around 5 lakh homes across major Indian markets are currently stuck. The analysis highlights that the National Capital Region (NCR) and Mumbai Metropolitan Region (MMR) constitute a significant majority, accounting for 77% of all delayed projects. In southern cities, Bengaluru, Chennai, and Hyderabad combined represent 9% of these stalled developments. As per the report, Bengaluru leads with 26,030 units, while Hyderabad has approximately 11,450 delayed homes, and Chennai has the least, with 5,190 units.
In light of these delays, former KRERA Chairman Kishore Chandra previously suggested that homebuyers facing such issues can take proactive steps. He indicated that buyers could approach KRERA to potentially take over unfinished projects and complete them. This shift in responsibility could empower homebuyers and provide a pathway for rectification in a market plagued by delays.
Despite the regulations in place intended to protect homebuyers, many face uncertainty and financial losses due to delays. As Bengaluru continues to expand and attract new residents, the pressure on developers to deliver timely and quality housing has never been greater. Local authorities are increasingly called upon to enforce accountability among real estate developers to ensure that promises made are promises kept.
In summary, while KRERA's ruling is a critical reminder of the obligations developers have towards their buyers, it also highlights the broader issue of project delays that affect countless individuals across the city and beyond. With the real estate sector at a crossroads, the need for stringent measures to protect homebuyers is more pressing than ever.
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