Karnataka REAT Upholds Order Directing Homebuyer To Pay ₹2.45 Lakh For Bengaluru Flat

The Karnataka Real Estate Appellate Tribunal has upheld an order directing a homebuyer to pay ₹2.45 lakh in outstanding dues for a flat in ALN Buildtech's ALN Arambh project in Bengaluru..

Dismissing the homebuyer's appeal, a Bench comprising Chairperson Justice J.M. Khazi and Judicial Member Santhosh Kumar Shetty N. held that compensation claims requiring a detailed inquiry must be pursued before the Adjudicating Officer, while grievances concerning common amenities must be raised through the Apartment Owners' Association or another competent legal forum.

The Tribunal observed:

“Thus, taking into consideration the fact that some of the relief sought by the Allottee require an enquiry by the Adjudicating Officer and some of the reliefs which are in the nature of common amenities are required to be sought through the Association of the Allottees, the Authority has rightly directed the Allottee to file necessary complaint through the Association or before such competent Legal Forum.” 

The dispute arose after a homebuyer booked a two-bedroom apartment in ALN Buildtech's ALN Arambh project for ₹33.50 lakh under an agreement for sale dated September 28, 2023. Possession was scheduled for April 2024, with an additional six-month grace period.

During inspection, the homebuyer alleged several deficiencies, including inadequate balcony railing height, missing false ceilings, teak wood door frames, fire sprinklers, power backup and other promised fixtures.

She further alleged that ALN Buildtech had provided only one key for inspection while withholding the remaining keys and occupancy certificate, preventing her from taking possession.

On July 18, 2025, the Karnataka Real Estate Regulatory Authority partly allowed her complaint and directed her to pay the outstanding ₹2.45 lakh within 30 days.

It directed ALN Buildtech to execute the sale deed, hand over possession within 15 days of payment and rectify balcony railing height and other major safety deviations before handover.

However, it left grievances concerning common amenities to be pursued through the Apartment Owners' Association or another competent forum.

Challenging the order under Section 44 of the Real Estate (Regulation and Development) Act, 2016, the homebuyer sought ₹10,75,684 towards missing flat-level amenities, ₹3,61,884 as delayed-possession interest calculated up to April 22, 2025, ₹80,449 towards rental losses and compensation for harassment.

She argued that the Authority wrongly classified individual apartment deficiencies as common-amenity issues and misinterpreted the agreement by making possession conditional upon payment of the outstanding amount.

ALN Buildtech denied the allegations, maintained that construction complied with agreed specifications and contended that the homebuyer had failed to clear the outstanding consideration despite being asked to complete registration.

Examining the agreement, the Tribunal noted that the final 3%, amounting to ₹1,00,500, was payable upon registration or possession, whichever occurred earlier. However, the homebuyer still owed ₹2.45 lakh, exceeding the contractual final instalment.

The Tribunal clarified that while the Regulatory Authority can order refunds and interest for delayed possession, compensation claims requiring an inquiry fall within the Adjudicating Officer's jurisdiction under Sections 71 and 72 of the Act.

It further noted that on July 13, 2026, the homebuyer expressed willingness to clear the outstanding amount and complete registration. On July 27, 2026, ALN Buildtech informed the Tribunal that the sale deed had been executed and produced a copy.

Finding no grounds to interfere, the Tribunal dismissed the appeal on September 29, 2026, and confirmed the Regulatory Authority's July 18, 2025 order.

For Appellant (Geethanjali M.): Party-in-person.

For Respondent (Karnataka Real Estate Regulatory Authority): Advocate I.S. Devaiah.

For Respondent (ALN Buildtech): Advocate Shashikala S.