Karnataka RERA Directs Adarsh Nivas To Pay ₹79.84 Lakh Delay Interest, Complete Project Within 60 Days

The Karnataka Real Estate Regulatory Authority has directed Adarsh Nivas Pvt. Ltd. to pay ₹79.84 lakh as delay interest to a homebuyer. It also ordered the developer to complete Adarsh Palm Acres Phase-2, Part-B, with all promised amenities within 60 days.

The authority further directed the company to execute the sale deed and hand over possession after receiving the balance sale consideration. It held that the developer had failed to complete the project despite receiving a substantial part of the sale consideration.

Member K. V. Jayaram passed the order.

"It is the bounden duty and obligation on the part of the promoters to complete the project in all respects and in accordance with contract between the parties," the authority observed.

The dispute relates to Villa No. 393 in the Adarsh Palm Acres Phase-2, Part-B project. Homebuyer Anil Kumar Kurra entered into an agreement for sale with Adarsh Nivas on September 12, 2022.

The agreed sale price was about ₹4.09 crore. Kurra told the authority that he had already paid about ₹3.82 crore. Under the agreement, the villa was to be handed over on or before August 31, 2023. He approached Karnataka RERA after alleging that the project remained incomplete. He also contended that neither possession nor registration of the villa had taken place despite repeated follow-ups.

Adarsh Nivas attributed the delay to labour shortages, lorry strikes and disruption caused by the Covid-19 pandemic. It informed the authority that it had obtained the Occupancy Certificate on August 21, 2024. The company also stated that it had asked buyers through an email dated August 29, 2024 to pay the balance amount. It further contended that Kurra had not cleared the remaining dues.

The authority noted that possession was due by August 31, 2023. It found that the sale deed had still not been registered and the project was incomplete.

"The developer who promises to fulfil dream of owning the house shall conduct himself in equally responsible manner. If he resorts to use the hard-earned money of investors in a reckless manner, it would not only shatter the dreams of investors, but also make him run from pillar to post by incurring heavy investment as well as legal expenses," the authority observed.

For Complainant: Represented by Legal Whisper, Advocates and Solicitors.

For Respondent (Adarsh Nivas Pvt. Ltd.): Represented by Pankaj Law Associates.