KRERA Slams Realtor to pay Rs. 2.5 Crore to Buyer for Failed Home Delivery

Mantri Developers must pay back Rs. 2.5 crore to a homeowner because KRERA found they did not provide the property that was promised. Additionally the authority ordered the builder to repay the home loan that the purchaser had acquired.

"The developer is directed to refund a sum of Rs. 2.5 lakh towards refund with interest from April 2014 till November 2024. The developer is also directed to close the loan standing in the name of the complainant," the order said.

Anant Ramachandran purchased an apartment at Mantri Webcity through the pre-EMI scheme using Rs. 15 lakh initial payment in addition to securing a home loan for Rs. 65 lakh. The developer remained unable to transfer the apartment during 2017 although KRERA recorded that five years had passed since the possession date.

"The buyer paid a sum of Rs. 15 lakh to the developer in April 2014, and in the same year, in May, the bank disbursed the complete loan to the developer to the tune of Rs. 65 lakh. The buyer paid several pre-EMIs to the bank after the developer failed to pay the same on the buyer's behalf," the order said.

The house buyer Anant Ramachandran invested Rs. 15 lakh in Mantri Webcity real estate development under pre-EMI terms before taking a separate home loan of Rs. 65 lakh to procure the property at Hennur in north Bengaluru. The 2017 possession date remained unfulfilled because KRERA discovered that the developer had not completed the handover process over five years since then.

The beneficiary explained to KRERA that the developer was supposed to reimburse and completely diminish the EMI payments until March 2017.

KRERA received information from the buyer that the developer stopped making payments and failed to deliver the apartment after January 2017 which prompted him to request withdrawal from the project through email.

According to the Authority the developer did not return all pre-EMI payments to the complainant as per the agreement so the buyer had to pay the financial institution.