Karnataka REAT Directs BCV To Pay For Delayed Possession, Says Consumer Law Principles Apply To RERA Claims
On 24 August, the Karnataka Real Estate Appellate Tribunal (REAT) set aside an order dismissing a complaint against BCV Developers Pvt. Ltd. and directed the developer to pay interest as compensation for delayed possession and non-completion of promised amenities at the “Juniper at Brigade Orchards” project in Devanahalli.
A Bench comprising Chairperson Justice J.M. Khazi and Judicial Member Santhosh Kumar Shetty N. observed that principles laid down in consumer law concerning the rights of allottees and consequences of a promoter's failure to fulfil contractual and statutory obligations can also be applied in RERA proceedings, where they are consistent with the scheme of the Real Estate (Regulation and Development) Act, 2016. It held:
“It is not in dispute that, prior to the enactment of the RERA Act, aggrieved Allottees were required to seek redressal of their grievances primarily through the Consumer Forum. Even after the enactment of the RERA Act, an aggrieved allottee is not precluded from approaching the Consumer Forum for appropriate relief, subject to the law governing the exercise of such remedies.”
The dispute arose from an Agreement to Sell and Construction Agreement executed on 22 March 2017 for purchase of an apartment in “Juniper at Brigade Orchards”, developed by BCV Developers. Possession was to be handed over by June 2019, with a six-month grace period, making 31 December 2019 the outer deadline.
The homebuyers alleged delayed possession and non-completion of several promised amenities, including the clubhouse, and approached the Karnataka Real Estate Regulatory Authority seeking Rs.31.13 lakh as compensation.
The complaint was dismissed by the Adjudicating Officer on 24 July 2025, following which the homebuyers approached the Appellate Tribunal under Section 44 of the RERA Act, which provides for an appeal against an order of the Regulatory Authority or Adjudicating Officer.
Before the Tribunal, the homebuyers contended that when the sale deed was executed on 22 July 2021, only the apartment was ready while the promised amenities remained incomplete.
BCV Developers argued that possession had been handed over on registration, no fixed deadline existed for completion of the Juniper Clubhouse, and residents could meanwhile use the nearby Signature Club for Rs.1,000 per month.
The Tribunal held that the Agreement of Sale and Construction Agreement were complementary documents and had to be read together while determining the developer's obligations.
It also rejected BCV Developers' contention that the Signature Club could substitute the promised Juniper Clubhouse, noting that the alternative facility required payment of a monthly fee and was also used by third parties. It observed:
“The mere availability of the Signature Club cannot, in our considered view, be treated as a satisfactory substitute for the Juniper Clubhouse which was contemplated as part of the project and to which the Allottees were entitled"
On delayed possession, the Bench found that the apartment ought to have been handed over by 31 December 2019, whereas the sale deed was executed only on 22 July 2021. It therefore held that the homebuyers were deprived of possession from 1 January 2020 to 22 July 2021.
It further noted that the Juniper Clubhouse remained incomplete even when the sale deed was executed and obtained its Occupancy Certificate only on 24 March 2026.
Accordingly, the REAT directed BCV Developers to pay SBI MCLR plus 2% interest on Rs.68.01 lakh from 1 January 2020 to 22 July 2021, along with Rs.10,000 per month from 23 July 2021 to 24 March 2026 for the period during which the promised clubhouse and amenities remained unavailable.
Appearances for petitioner (Homebuyers): Parties-in-person.
Appearances for respondent (Karnataka RERA): Advocate I.S. Devaiah.
Appearances for respondent (BCV Developers Pvt. Ltd.): Advocate Tanisha Sunil Kumar.