KRERA orders Shapoorji Pallonji to compensate Bengaluru homebuyer, dismissing COVID-triggered delay claim

The contract between the parties had mentioned that the developer will have to pay a delay compensation of Rs 5 per sq ft per month until the final handover date.

Karnataka Real Estate Regulatory Authority (KRERA) has ordered Relationship Properties Pvt Ltd, a fully owned subsidiary of Shapoorji Pallonji group, to compensate a homebuyer in Bengaluru for failing to hand over her apartment within the stipulated time.

KRERA, on November 14, dismissed the developer's claim that the pandemic caused the delay, and said that the developer failed to hand over the apartment, despite obtaining a partial occupancy certificate, as promised to the buyer.

The aggrieved party, Veena Ravishankar, had booked a luxury apartment in December 2016 in Phase II, Tower 4 (Maple), of the Parkwest project in Bengaluru, and the initial handover date was 2020. Despite several extensions, the project remained incomplete, forcing her to approach the KRERA .

Ravishankar booked the apartment for Rs 1.3 crore, with a final handover date of June 2020.

The contract between the parties had mentioned that the developer will have to pay a delay compensation of Rs 5 per sq ft per month until the final handover date.

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Correspondent|Moneycontrol

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The homebuyer told KRERA that not only did the developer fail to hand over the apartment, but also failed to obtain an occupancy certificate.

"Despite taking 90 percent of the apartment cost, the developer did not compensate for the delay and I am losing Rs 25,000 monthly in rent and travelling costs," Ravishankar said.

Denying her allegations, Shapoorji Pallonji said that the delay was mainly due to COVID-19 and non-availability of workers.

"Thus, it was beyond the developer's control to complete the project," Shapoorji told the authority. However, KRERA held that pandemic cannot be a reason for delay.

KRERA noted that the developer obtained a partial occupancy certificate from the local municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP).

Moneycontrol had reported that BBMP had issued 552 partial OCs for Phase II, Tower 4 (Maple) of the Parkwest project. The proposal for the issuance of partial OC was approved by the Chief Commissioner dated December 5 and January 23 of 2023.

"A spot inspection by the authority in February 2024 noted that the developer has completed the pending repairs as flagged by the buyer and the apartment is ready for possession," the order said.

Thus, KRERA ordered Shapoorji to compensate the homebuyer at 2 percent interest rate from 2020 till February 2024, within two months of the order.

A spokesperson from Shapoorji Pallonji said: "We are in receipt of the order and are evaluating the specifics. We shall decide the way forward as we may be advised. We remain committed to actively working to resolve the issue in the best interests of all parties involved."