KRERA orders Embassy Group to compensate buyers Rs 4 crore for delay in luxury Bengaluru project

hile the handover date was 2018, the developer failed to offer possession even after six years of the promised handover date.

The Karnataka Real Estate Regulatory Authority (KRERA) has asked Embassy One Developers Pvt Ltd, a subsidiary of the Bengaluru-based Embassy Group, to pay Rs 4.2 crore in delayed compensation to homebuyers after it failed to deliver possession five years after the agreed handover date.

The authority noted that for the luxury Embassy One project in north Bengaluru, the developer had failed to file objections despite seeking three months from KRERA. Thus it ordered the developer to pay the compensation from the date of the promised handover to the date of possession. "Additionally, the developer will have to pay interest for further delay in completion of the project," it added.

In this case, the homebuyer Poonam Prabhu had booked the apartment in the luxurious Embassy One project for Rs 7.8 crore in 2016. The handover date was 2018, but the developer failed to offer possession even after six years of the promised handover date.

Located in north Bengaluru, Embassy One is a premium luxury project sprawling over more than six acres and has 109 apartments. The units are spread across two towers and offer 1-5 BHK options.

"It is evident that the homebuyer has paid a large amount for the apartment and there is a delay in handing over the apartments. Hence, the developer is entitled to pay delay interest according to Section 18 of the RERA Act," the order said.

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Sub Editor|Moneycontrol

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"Embassy Group has challenged the KRERA order in the Karnataka High Court and obtained an interim stay until further orders on June 18. The rest of the matter is subjuidice," a company spokesperson added.

According to Karnataka RERA documents, the RERA registration period for the project Embassy One was 2019. However, the authority granted an extension for 9 months in 2020 due to the Covid-19 pandemic. When the developer failed to complete the project even by that date, the authority extended it till 2026 in March 2024.

Data from the authority shows that the developer currently has more than 11 complaints lodged against them in Bengaluru and a majority of them have been settled out of the court.