Suvilas Properties, a wholly-owned subsidiary of listed real estate player Shriram Properties Ltd - SPL based in Bengaluru, has been ordered by the Karnataka Real Estate Regulatory Authority - KRERA to refund the entire booking amount after providing incorrect information to the buyer prior to the sale.
In this instance, the developer offered the buyer an Rs 1.2 crore apartment and claimed that the high-rise would have 27 floors if RERA approval was granted. However, the project only had 20 floors. KRERA asked the developer to refund the booking amount of Rs. 50,000 by passing the order on April 17. Shriram Properties acquired the stressed project in 2022, and the project is a part of it. In the north of Bengaluru, the project “The Poem” is located close to Yeshvanthpur Hobli. It is a project that is ongoing and has been registered with RERA until 2026.
The homebuyer, Amitkumar Kuhikar, was shocked to discover on the RERA website that the project only has 20 floors after reserving the flat with the booking amount.
When he contacted the developer, they informed him that the project would receive RERA approval for the same, but they were unable to provide a timeline. As a result, the homebuyer contacted the developer on March 23 to request a cancellation of the reservation and asked to do a refund the payment.
After that, the authority notified that the developer had given a misleading information about the floor numbers & the approval of RERA.
Regarding this, the authority said, "The complaint is not of delay, but about the homebuyer seeking a voluntary refund”. Hence the authority ordered the respective developer to refund the entire amount including interest.
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