Bengaluru Homebuyer gets Rs 7.12 lakh compensation for delaying possession under RERA; Know your rights under RERA

The recent Karnataka RERA ruling involves a case where a homebuyer in Bengaluru was awarded Rs 7.12 lakh in compensation for a delayed possession. The Karnataka RERA held that for an agreement of sale to be legally enforceable, it must be precise, clear, and devoid of misleading information. In this case, the builder failed to deliver the flat on time, which is a breach of the agreement under Section 18 of the RERA Act. The ruling reinforces the rights of homebuyers to claim interest or compensation for possession delays even after the sale deed has been executed.

In an article covered by The Economic Times Wealth on this subject, Mr. Subrata Mukherjee, Partner at SNG & Partners, while expressing his agreement to the ruling said that, “There has been a clear and admitted breach of delay in possession by the builder (of more than a year) in the terms of the agreement of sale executed between the parties (“Agreement”). This is a clear breach of the Agreement, for which delay period interest is a remedy available under section 18 of the RERA Act and also is an agreed position under the Agreement. The builder by registering the sale deed more than one year later to the date agreed to, has admitted the delay in handing over possession of the flat and hence is liable to pay the delay interest.”

Further, he had shared some important takeaways that consumers must always keep in mind which are as follows:

The Agreement is of paramount importance and all conditions in the Agreement can be enforced.
For reasons mentioned in point 1, the Agreement should be unambiguous, clearly drafted and reviewed by the consumers in detail before signing.
The provisions of the Agreement can continue even after the sale deed has been executed and does not extinguish the liability of the builder under the Agreement.
Even after the sale deed/ handover of possession, buyers are entitled to interest for any delay during the handover.
In case of delay, a buyer has a choice either to withdraw from the project and seek refund of the amount paid together with interest as may be prescribed and also compensation, or to stay with the project and be entitled to interest for the delay period in handing over.

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