Bengaluru: The Karnataka Real Estate Regulatory Authority (RERA) has directed Adarsh Nivas Pvt Ltd, developer of the Adarsh Palm Acres Phase 2 project at Huttanahalli in Bengaluru North, to complete the project, execute the sale deed and hand over possession of a villa to a homebuyer, besides paying nearly ₹79.84 lakh as interest for the delay.
The order follows a complaint filed under Section 31 of the Real Estate (Regulation and Development) Act by a buyer who had booked a 4,740 sq ft villa in the project. The buyer had entered into an agreement for sale with the developer on September 12, 2022, for a total consideration of ₹4.08 crore, excluding additional charges, and had paid ₹3.82 croretowards the property.
As per the agreement, the developer was required to complete the project and hand over the villa by August 2023. However, the buyer complained that the project was delayed and that the developer had neither registered the sale deed nor handed over possession within the agreed period.
The developer attributed the delay to several factors, including a lorry strike, shortage of labour and the Covid-19 pandemic, which it said had brought construction activity to a standstill and resulted in workers returning to their native places. It also submitted that it received the Occupancy Certificate on August 21, 2024, and informed buyers about it on August 29, 2024.
The developer further contended that the complainant had not made the balance payment as stipulated in the agreement. It claimed that the villa was ready for handover. The buyer, however, told the authority that the delay had forced him to rent another property and sought compensation for the rent incurred as well as interest for the delayed possession.
The RERA authority noted that the developer had acknowledged the delay and had undertaken to pay compensation. It also observed that the agreement for sale bound both parties and that the promoter was required to complete the project in accordance with the agreement.
The authority relied on a Supreme Court judgment concerning delayed possession and noted that an allottee who continues with the project is entitled to interest for the period of delay in handing over possession.
“Considering all these facts and circumstances of the case herein,” the authority held that it was just and proper to direct the developer to complete the project with all promised amenities, execute the sale deed, hand over possession and pay interest for the delay.
In its final order, RERA directed the respondent to complete Adarsh Palm Acres Phase 2, Part-B, Huttanahalli, Vidyanagar Cross, Jala Hobli, Bengaluru North, with all promised amenities within 60 days of the order.
The developer was also directed to execute the sale deed for Villa No. 393 after receiving the balance sale consideration, if any, and hand over possession within the same 60-day period.
Most significantly, the authority directed the developer to pay ₹79,83,758 towards interest for the delay, calculated up to November 19, 2025, at the marginal cost of funds-based lending rate (MCLR) plus 2%, for the period from August 31, 2023 to November 19, 2025.
It further ordered that interest accruing from November 20, 2025 until the date of final payment should be calculated at MCLR plus 2% until possession is handed over.
The project had been registered with RERA under registration number PRM/KA/RERA/1251/309/PR/170915/000418, with the registration valid until November 30, 2020, according to the order.
