KRERA Orders Prestige Group To Pay Compensation For Delay In Possession

The Karnataka Real Estate Regulatory Authority (KRERA) recently asked Bengaluru-based listed real-estate developer Prestige Group to pay Rs 2.17 lakh as compensation to a homebuyer after it failed to hand over the apartment within the stipulated time. The KRERA move comes even as the homebuyer has already taken possession of the apartment.

The said project located close to Rajarajeshwari Nagar, was supposed to be completed and handed over to the compliant by 2018 however occupancy certificate was given in 2019. The developer reportedly failed to deliver the apartment in Prestige Bagmane Temple Bells at the scheduled time due to ongoing litigation in the National Green Tribunal (NGT) regarding a lake buffer zone near the project.

Prestige Group claimed that the complaint was not sustainable as the homebuyer had already taken possession of the apartment and had been residing there from 2019 onwards.

KRERA, after hearing the story of both sides noted that there was a delay of about seven months in handing over the apartment to the homebuyer even though the project was completed within the stipulated time. KRERA also noted that though the developer is not responsible for the delay in issuing the occupancy certificate, however, is liable for paying compensation for the delay to the homebuyer as it is bound by the RERA Act.

Source: Moneycontrol