Karnataka RERA has given an important judgment in favour of a Bengaluru homebuyer who received his flat almost four years late.
The buyer had paid ₹1.48 crore for the apartment, but the possession was not given on time. RERA has now directed the builder to refund around ₹29 lakh, along with interest.
What Exactly Happened?
The buyer and the builder signed their agreement on January 9, 2014.
As per the agreement, the project was supposed to be completed by June 1, 2017.
But the actual timeline turned out to be very different:
Construction completed: October 8, 2018
Occupancy Certificate (OC) issued: September 12, 2018
Sale deed registered: April 23, 2021
This clearly showed a significant delay in project completion.
The builder argued that the delivery date mentioned in the agreement was a typing mistake, and the real date should have been November 2017.
He also claimed that an addendum was sent to the buyer on June 18, 2015, revising the delivery date. However, he could not provide any evidence to support this claim.
What Did RERA Decide?
Karnataka RERA accepted the buyer’s complaint and made the following observations:
There was no registered document showing any change in the delivery date.
The builder failed to prove that the addendum was ever sent.
The project was delayed without valid reasons.
Reasons like demonetization, rain, sand shortage, and contractor changes did not qualify as force majeure.
Therefore, RERA ordered the builder to:
Pay SBI MCLR + 2% interest from June 1, 2017 till the date of possession.
Pay the buyer a total delay compensation of ₹29,05,091 within 60 days.
The builder challenged the order, but the appeal was dismissed on October 24, 2025.
Why Did the Buyer Win the Case?
Experts and RERA reports highlighted these major points:
Builder’s Delay
The builder failed to deliver the project on time and could not justify the delay with valid reasons.
No Evidence of Addendum
The builder claimed he sent a revised delivery date, but could not provide:
Postal receipts
Courier records
Any documentation to support his claim
No Official Change in Agreement
RERA clarified that any change in delivery date must be done through an official, registered document. No such document existed.
Buyer Paid On Time
The builder argued that the buyer delayed payments. But the buyer’s bank statement showed all payments were made on time.
Section 18 of RERA Applies
Under Section 18, if a builder fails to hand over the home on time, the buyer is entitled to interest and compensation.
This right cannot be taken away by any agreement.
