Times of India·3 min read·medium

4 buyers paid Rs 2.08cr each for flats, but pool, gym missing; RERA orders Rs 10L

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4 buyers paid Rs 2.08cr each for flats, but pool, gym missing; RERA orders Rs 10L
AI Summary

The Karnataka RERA authority has ordered a builder to pay Rs 10 lakh in compensation to four homebuyers for failing to deliver promised amenities like a gym and spa. The ruling emphasizes that showcasing facilities in brochures and agreements constitutes a binding commitment, regardless of intent.

Why it matters

This sets a significant legal precedent for consumer protection in the real estate sector, holding developers accountable for marketing misrepresentations.

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A builder promises several amenities in a housing project, but fails to deliver. What happens after that? A Karnataka RERA ruling in this context assumes importance.A reputed builder has been asked to pay Rs 10 lakh compensation to four homebuyers after a joint inspection and photographs showed that several amenities promised in the project, including a senior citizen park, open gym, spa, amphitheatre and sports facilities, had not been delivered.The authority held that showcasing these facilities in brochures and agreements but failing to provide them amounted to misrepresentation, despite the buyers having signed the sale deeds.What the case is aboutThe order followed a complaint filed by four homebuyers. Their housing project is situated in Bangalore North. The buyers had purchased flats in the project for Rs 2.08 crore each and executed the sale deeds in 2022.

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