The Karnataka Real Estate Regulatory Authority (KRERA) has ordered Bengaluru-based Mantri Developers to pay a homebuyer Rs 48.4 lakh, more than half of the total apartment cost, as compensation for the delay in handing over the project possession.
In this case, the developer failed to hand over possession of an apartment at Mantri Webcity 2A on Hennur Road for almost 7 years. The homebuyer, Shreyanshu Pavas, had booked the apartment in 2013 with the handover date in 2016.
Having paid more than Rs 63 lakh, Pavas told KRERA that the developer has not only failed to hand over the project but also to complete it. “I could have earned Rs 35,000 monthly rent from the apartment,” he said.
Read More: Mumbai clocks Rs 12,300-cr luxury housing sales in H1 CY24
Developers’ contention
However, the developer contended that the homebuyer had paid only part of the total apartment cost. “The date of apartment delivery is dependent upon the occupancy certificate. Due to several incidents – not in control of the developer – like demonetisation, non-availability of raw materials and pending legal litigations the project got delayed,” Mantri Developers said.
The developer had filed for a further extension to complete the project and the same is still pending with KRERA, it said.
However, the KRERA noted that the enquiries sent by the homebuyer for the status of the project still remain unanswered by the promoter. “An agreement is a key instrument that binds the parties in a contract. And there has been a considerate delay on Mantri Developers’ side to complete the project,” the authority said.
Read More: Launches of Affordable Flats Drop 21% Annually in April-June to 1,32,77 Units in Top 7 Cities: JLL
Thus, the KRERA ordered Mantri Developers to pay the homebuyer Rs 48.4 lakh towards delay compensation between 2016 and 2024. Additionally, it asked the developer to hand over possession within 60 days of the order dated June 18.
In December 2023, the Supreme Court upheld a National Consumer Disputes Redressal Commission (NCDRC) order that directed Mantri Estate Management Pvt Ltd to return the refundable maintenance deposit of about Rs 7.1 crore to the homebuyers for a Bengaluru-based project, Moneycontrol reported. In the case of the Mantri Residency project in south Bengaluru, Mantri Estate Management had collected a lumpsum refundable maintenance deposit of Rs 90 per square foot of the super built-up area from each of the flat buyers after completion of the project.
