The Karnataka Real Estate Authority has demanded Provident Housing, which is a subsidiary of Puravankara Ltd, to pay the delayed interest on the home loan EMI, which is paid by the home buyers, as the builder could not handover the project Provident Noera apartment since six years.
After giving the order on March 14, the authority noted that this often becomes a burden on the homebuyers of delayed projects, especially in this case where the developer continued to extend delivery dates with "fake promises."
This was happened when the homebuyers continuously paying high interests on home loans, followed by the RBI’s pause in rate hikes at 6.50%. Presently, as of March 2024, the interest rate of home loan in India ranges between 8-15% in various banks.
The project of Puravankara is located in North Bengaluru’s one of the bustling area of Yelahanka. The luxury project consists of 2BHK apartments ranging between 890 - 920 sq ft. The homebuyers of the project demanded that, the project was launched before seven years, but the developers have mentioned that the launch date is in 2018.
According to appeals made to the authority, the homebuyer, Dasari Naresh, signed the sale agreement in 2019 with a handover date of 2023. The order mentioned, "Due to a delay in the handover date, the homebuyer has been paying EMI with interest to the bank, thus suffering a financial loss."
The homebuyers claimed that, they have requested the developer to handover as soon as possible, for several times, but, Provident Housing kept on extending the date for delivery of the apartments. Pointing out the section 18 of RERA Act, which gives the liberty to the homebuyers to claim compensation in case of delay in project completion, K-RERA said that the developer is liable to pay a delayed interest on the EMIs.
K-RERA ordered, "The developer has to pay delayed interest at the rate of SBI MLCR with an additional two percent from December 2023 till handover of the apartment, amounting to Rs. 7.7 lakh within 60 days."
A spokesperson from the developer’s side quoted, "The order was passed based on the homebuyer's opinion by the KRERA. The project was completed before time, but the occupancy certificate could not be procured because of the non-availability of the system for issuing height clearance by the Government Flying Training School (GFTS) at Jakkur. As developers, we have done the best we could do. Sometimes, the system takes time. Now the clearance issue is resolved and the project has been granted OC."
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