KRERA directs Mantri Developers to pay Rs.48.5 lakh to buyers for delayed possession

The Karnataka Real Estate Regulatory Authority (KRERA) has mandated that Bengaluru-based Mantri Developers compensate a homebuyer with Rs 48.4 lakh, which amounts to over half of the total apartment cost, due to the delay in delivering possession of the project.

The developer neglected to deliver possession of an apartment at Mantri Webcity 2A on Hennur Road for close to seven years in this particular situation. Shreyanshu Pavas, the homebuyer, had made a booking for the apartment in 2013 with the expected handover date set for 2016.

Pavas informed KRERA that despite paying over Rs.63 lakh, the developer has not delivered the project as promised and has failed to finish it. He mentioned that he could have potentially earned a monthly rent of Rs.35,000 from the apartment. 

The developer argued that the homebuyer had only made a partial payment towards the total cost of the apartment. Mantri Developers stated that the delivery date of the apartment is subject to the issuance of the occupancy certificate. They attributed the project delay to various uncontrollable factors such as demonetisation, shortage of raw materials, and unresolved legal disputes.

The developer has requested an additional extension to finish the project, which is currently pending with KRERA.

The KRERA has observed that the homebuyer's inquiries regarding the project's status have not been addressed by the promoter. "An agreement is a crucial tool that legally binds the parties in a contract. Mantri Developers have significantly delayed the completion of the project," stated the authority.

The KRERA mandated that Mantri Developers compensate the homebuyer with Rs.48.4 lakh for delays occurring between 2016 and 2024. Furthermore, the developer was instructed to transfer possession within 60 days of the June 18 order.

In December 2023, the Supreme Court upheld an NCDRC order directing Mantri Estate Management Pvt Ltd to refund around Rs.7.1 crore to homebuyers of the Mantri Residency project in Bengaluru. The company had collected Rs 90 per square foot as a refundable maintenance deposit after project completion.