Prestige Group heftily charged by KRERA for delayed possession

The Karnataka Real Estate Regulatory Authority (KRERA) has ordered, one of the pioneers of real estate in Bengaluru, Prestige Group to pay Rs. 2.17 lakh as compensation to a homebuyer after it failed to hand over the apartment within the stipulated time.

The realty firm informed that, they could not handover the apartments ‘Prestige Bagmane Temple Bells’ on time due to ongoing litigation in the National Green Tribunal (NGT) regarding a lake buffer zone near the project.

The authority passed this order on 20^th May, which mentioned, "The developer is ordered to pay the amount for the delay period between December 2018 and July 2019, within 60 days of the order."

This widely controversial project is located near Rajarajeshwari Nagar. A homebuyer Pramod SM said that, Prestige has promised to complete and handover the project by 2018. However, the respondent could only obtain the occupancy certificate in 2019. KRERA also asked the homebuyer, Pramod SM, to pay Rs. 76,774 for defaulting on his regular instalments.

When called and asked in front of the authority, Prestige Group claimed that the complaint was not sustainable as the homebuyer had already taken possession of the apartment and had been residing there from 2019 onwards.

They quoted, “The project was completed in 2017 and the developer obtained the completion certificate from the architect before the handover date."

They claimed, “In 2019, the Supreme Court set aside the NGT's order and issued directions to the BBMP to provide the OC. Therefore, the delay in handing over the apartment was due to unforeseeable circumstances (force majeure)."

After hearing from both the sides, KRERA observed that, there was a delay of about seven  months in handing over the apartment to the homebuyer.

Inspite of the developer’s claim that the project was completed within stipulated time, the authority said that Prestige Group, having registered the project under the RERA Act, is also bound by it.

KRERA also noted that though the developer is not responsible for the delay in issuing the occupancy certificate, Prestige Group is liable for paying compensation for the delay to the homebuyer.

Finally, KRERA ordered the developer to pay Rs. 2.17 lakh in compensation against Rs. 1.16 lakh.