KRERA Penalizes Shriram Properties Rs. 12. 7 lakh for Delayed Compensation

The Karnataka Real Estate Regulatory Authority (KRERA) has directed Bengaluru-based real estate developer Shriram Properties to compensate homebuyers with Rs. 12.7 lakh for project delays.

The order was issued after the developer failed to inform both KRERA and buyers about ongoing litigation at the time of project registration.

According to the KRERA order dated January 17, the developer must pay interest for the delay period from December 31, 2019, until possession is granted. The compensation amount totals Rs. 12.77 lakh and must be paid within two months.

The dispute arose from delays in the Shriram Summit project, where buyers had booked apartments expecting completion by December 2019. However, the project’s Occupation Certificate was only granted in May 2022, causing a significant delay.

Located in North Bengaluru, Shriram Summit is a residential project spread over 15 acres, featuring 1, 2, and 3 BHK apartments. As per KRERA records, the sale agreement was signed in November 2019, with an expected possession date in December of the same year. Despite this, the occupancy certificate was received nearly two and a half years later.

Buyers Sandeep Palekar and Amruta Jogalekar approached KRERA over the prolonged delay in possession. In response, Shriram Properties argued that the delay was caused by force majeure events. The company attributed the construction slowdown to litigation over the project's proximity to a tertiary drain, a case filed with the National Green Tribunal (NGT), and other disruptions. However, KRERA dismissed these as routine construction challenges that the developer should have managed.