Builder delayed Rs 44.36L flat by 18 months; RERA orders 10.7% interest
The Telangana RERA authority has ordered a builder to pay interest compensation to a homebuyer due to an 18-month delay in flat possession. The authority rejected the builder's attempt to blame the delay on Covid-19 and ruled against undisclosed debris charges.
Why it matters
This ruling serves as a precedent for consumer protection in the real estate sector, reinforcing the accountability of developers under RERA regulations.
You pay for a flat which the builder promises possession of on an agreed timeline. He delays possession beyond the grace period. What do you do in such a case?Telangana RERA has granted relief to a homebuyer in one such case, ordering the building to pay interest compensation. It found that the builder had delayed handing over the flat by 18 months and had also levied an additional Rs 30,000 as a debris charge.The Telangana RERA authority concluded that the builder had not fulfilled its obligations under the Agreement of Sale and Section 11(4)(a) of the RERA Act. It also rejected the builder's contention that the delay was caused by Covid-19.What the case is aboutA man decided to purchase a flat after seeing an advertisement and checking information available on the builder's website.
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