Bengaluru Homebuyer to Get ₹70 Lakh from Builder Due to Three-Year Delay in Possession
A Bengaluru homebuyer won a landmark case against a builder for a three-year delay in possession, resulting in the Karnataka Real Estate Regulatory Authority (Karnataka RERA) directing the builder to pay ₹70 lakh in total compensation. The amount includes a full refund of ₹51 lakh paid by the buyer and ₹19 lakh as interest, to be paid within 60 days.
The homebuyer had booked an apartment in the Ozone Urbana Prime project near Kempegowda International Airport with a possession deadline of June 2021. However, the builder failed to complete the project even by 2024, with the project license expiring and construction stalling, frustrating the buyer who had made payments via a home loan.
How RERA Helped the Homebuyer Win the Case
The buyer exercised his legal rights under Section 18 of the Real Estate (Regulation and Development) Act, 2016 (RERA), which protects homebuyers against delays and defaults by builders. Karnataka RERA relied on precedents set by two Supreme Court judgments clarifying that:
If a builder fails to deliver possession by the agreed date, the homebuyer can demand a refund of the amount paid plus interest.
Section 18 empowers buyers to withdraw from the project and recover their investment if the builder defaults.
Interest compensation is mandatory for every month of delay if the buyer opts not to continue with the project.
The tribunal rejected the builder’s usual excuses related to floods, labor shortages, and regulatory delays, emphasizing that the contractual commitment takes precedence and delays beyond the agreed date are the builder’s responsibility.
Key Takeaways from the Karnataka RERA Order
Builders are strictly accountable under RERA for timely possession delivery.
Homebuyers have the legal right to claim refund plus interest if possession is delayed without valid reasons.
RERA provides a speedy and effective dispute resolution mechanism compared to traditional courts.
Buyers should ensure projects are registered under RERA and invoke Section 18 if delays occur.
The ruling serves as a deterrent against builder negligence and encourages adherence to contractual timelines.
Frequently Asked Questions (FAQ) ?
Q: What relief can a homebuyer get under RERA for delayed possession?
A: Under Section 18 of RERA, if possession is delayed, the buyer can claim a full refund of the amount paid along with interest, or continue with the project and claim compensation for the delay.
Q: How long does it take to get a ruling from Karnataka RERA?
A: RERA hearings are typically faster than regular courts, often concluding cases within a few months depending on complexity.
Q: Are builders allowed to extend possession deadlines?
A: Builders can only extend deadlines with the written consent of homebuyers. Unilateral delays without consent are considered breaches of contract.
Q: Can homebuyers claim compensation for rent or EMIs paid due to delay?
A: Yes, buyers can include rent or loan EMI expenses incurred due to delayed possession when seeking compensation under RERA.
Q: What should homebuyers do if their builder delays possession?
A: Homebuyers should file a complaint with the state RERA authority providing all agreement and payment proof and invoke their rights under Section 18 for refund/compensation.
Published on: July 21, 2025
Published by: PAVAN
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