Karnataka RERA Directs Mantri Developers To Register Flat, Grant Homebuyer Possession Within 60 Days

The Karnataka Real Estate Regulatory Authority (Authority) on May 5 directed Mantri Developers to execute the registered sale deed in favour of a homebuyer and hand over possession of a flat in accordance with the Agreement for Sale.

A Bench comprising Chairman Rakesh Singh and Member G.R. Reddy allowed the complaint and held that the developer must complete registration and conveyance without further delay. It observed:

“The purport and object of RERA Act is to develop and promote Real Estate Sector and at the same time to safe guard the interest of purchasers. The Act gives protection to homebuyer and enhanced transparency and Accountability in Real Estate transactions.”

The homebuyer booked a flat in the project “Mantri Webcity 3C” on 21 January 2024, located on Hennur Main Road, Bengaluru. The parties executed an Agreement for Sale on 8 March 2024 for a total sale consideration of Rs. 1.17 Crores. The homebuyer paid Rs. 26.88 lakhs towards the purchase and expressed readiness to pay the remaining amount.

The homebuyer alleged that despite repeated follow-ups through emails, phone calls, and personal meetings, the developer failed to execute the sale deed or complete registration of the flat, while continuing to give assurances. Then, the homebuyer approached the Authority seeking either execution and registration of the sale deed or refund of the amount paid.

The Authority noted that the developer admitted the allotment, execution of the Agreement for Sale, and receipt of Rs. 26.88 lakhs, but still failed to execute the registered sale deed despite repeated assurances.

Relying on Manoj Kawatra and Another v. Pioneer Urban Land & Infrastructure Ltd., the Authority held that a developer cannot compel homebuyers to wait indefinitely for performance of its obligations. It further observed that RERA aims to protect homebuyers and ensure timely compliance by promoters.

Moreover, the Bench held that Section 17 of the RERA Act places a statutory obligation on promoters to execute conveyance and transfer title in favour of allottees upon fulfilment of conditions.

Accordingly, the Authority directed Mantri Developers to execute the registered sale deed and hand over possession of the flat to the homebuyer within 60 days from the date of the order, in terms of the Agreement for Sale.

Counsel for the Complainant: Mr. Hanumesh H.N. and others, Advocates

Counsel for the Respondent: Mr. Harsha D. Joshi and others, Advocates