KRERA penalizes Embassy Group for 'delivering delayed ownership' for Homebuyers

The KRERA – Karnataka Real Estate Regulatory Authority has ordered the prominent real estate developer Embassy One Developers (a subsidiary of Bengaluru-based Embassy Group) to pay Rs. 4.2 crore in hindered payment to home buyers after it failed to give ownership of five years after the decided handover date.

The authority highlighted for the high net worth Embassy One project in the North Bengaluru locality, the real estate developer has failed to case oppositions regardless looking three months from KRERA.

Hence it ordered the realtor to pat the appropriate recompense from the date of the scheduled ownership handover to the homebuyer.

"It is evident that the homebuyer has paid a large amount for the apartment and there is a delay in handing over the apartments. Hence, the developer is entitled to pay delay interest according to Section 18 of the RERA Act”, the RERA statement said.

Further it added, "Additionally, the developer will have to pay interest for further delay in completion of the project”.

On this incident, the home-buyer Poonam Prabhu had registered the apartment in the Embassy One project for Rs.7.8 crore in 2016. The ownership handover date was 2018, but the realtor failed to provide ownership even after the six years of pledged handover date.

Embassy has challenged the order of the RERA Authority dated 1.6.2024 in RERA Complaint No.958/2023 (Poonam Ajay Prabhu vs Embassy One Developers and others), before the Honorable High Court of Karnataka in Writ Petition No. 14899/2024. Various grounds have been raised before the Honorable High Court, including on there being no delay by Embassy. 

In the said Writ Petition, the honorable High Court has directed by its Order dated 18.6.2024 that “…there  shall be an interim stay of the order dated 16.05. 2024”. The extract from the High Court website of the Order dated 18.6.2024 is attached. 

Situated in North Bengaluru, Embassy One is a prime-level luxury project spanning over six acres with mass 109 apartments. The apartment units are spread across two towers and provide 1 to 5 BHK options.