"Deliver the Possession within one year, if not refund the amount", KRERA directs Builders

The Karnataka Real Estate Regulatory Authority (KRERA) has directed a Bengaluru-based developer to refund the full amount of Rs.34.7 lakh to a homebuyer due to the developer's failure to deliver possession within the stipulated 12 months.

GVG Infrastructure Pvt Ltd, the developer, had committed to completing the Mulberry Mist project in Varthur, Bengaluru, by August 2019. However, since the project was not completed on time, the homebuyer sought assistance from KRERA.

Currenly,Bangalore is facing more than 26,030 delayed projects, totaling more than Rs.28,072 crore, with some projects running behind schedule by over 4-5 years. 

The Karnataka Real Estate Regulatory Authority (KRERA) has ordered a Bengaluru-based developer to return Rs. 34.7 lakh to a homebuyer after failing to deliver possession within the promised 12-month period.

GVG Infrastructure Pvt Ltd, the developer, had pledged to complete the Mulberry Mist project in Varthur, Bengaluru, by August 2019. With the project still unfinished by the deadline, the homebuyer turned to KRERA for redress.

Thy mentioned, "Having received a substantial sale consideration, the developer failed to comply with the terms of the agreement. This entitles the homebuyers to claim for refund along with interest."

The authority has decided to ask the developer to refund the entire amount to the homebuyer with a delayed interest of Rs. 11.5 lakh within two months. It also asked the developer to cancel the agreement signed with the homebuyer after the refund has been initiated.

According to the report of real estate consultancy firm Anarock, nearly 5 lakh homes worth Rs.4.48 lakh crore are stuck across seven micro markets in the country.

The Anarock report focuses on real estate markets in metro cities. It reveals that the National Capital Region (NCR) and the Mumbai Metropolitan Region (MMR) together account for 77% of delayed projects. Pune has a 9% share of these delays, while Kolkata accounts for 5%.

The remaining 9% of delays are distributed among the southern metro cities of Bengaluru, Chennai, and Hyderabad.

Bengaluru has 26,030 units delayed, valued at over Rs. 28,072 crore. Hyderabad faces delays with approximately 11,450 units worth over Rs. 11,310 crore, while Chennai has the fewest stalled homes among the top 7 cities, with 5,190 units valued at around Rs. 3,731 crore.

Former KRERA Chairman Kishore Chandra previously noted that homebuyers have the option to approach the authority to take over and complete delayed projects themselves.