Supreme Court orders handover of Mantri Serenity flats by March 13, gives relief to over 1,000 homebuyers

The Supreme Court has directed Bengaluru-based developer Mantri Castles Pvt Ltd to hand over the apartments of the Mantri Serenity project, delayed for five years, by March 13, bringing relief to over 1,000 homebuyers.

"Counsel appearing on behalf of the developer states that possession would be handed over before the next date of listing to all flat buyers who have paid 100 percent of their outstanding dues in terms of the buyers’ agreements," the SC order dated February 13 said.

These directions also apply to those homebuyers who would pay their outstanding dues before the next date of listing, and immediately upon their making payment possession shall be handed over, the order added.
The flats were to be handed over to the buyers from 2016-17 onwards.

However, after the initial delay of about two years, the homebuyers started filing complaints with the Karnataka Real Estate Regulatory Authority (KRERA).

The project

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Sub Editor|Moneycontrol

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The Bengaluru project has 6 towers and a partial occupancy certificate (OC) for Block 2 and Block 4 and Block 5 has been obtained. These comprise 1,492 units. There are a total of 2,150 apartments in Blocks 1 to 5. Block 6 is yet to be constructed.

Vikram SG who invested about Rs 1 crore for a 3BHK in Block 4 has been waiting for possession of his house since 2017. "I have completed the registration of the apartment but am still to receive possession," he added.

Another homebuyer, Prabhu Shankar, who has paid Rs 70 lakh for a 2BHK in Block 4 is, however, unsure about moving in. "After having waited for several years, I have now bought another apartment and may put the Serenity apartment on rent after getting possession," he added.

In 2020, the homebuyers filed a first information report (FIR) at Subramanyapura Police Station levelling criminal charges against the developer, and the investigation is still ongoing.

ED action

Last month, the Karnataka High Court ordered a status quo on apartments of the Mantri Serenity project, which were seized by the Enforcement Directorate (ED) after complaints that the developer allegedly misappropriated funds.

In September last year, Karnataka Crime Investigation Department (CID) arrested Sushil Mantri, director of Mantri Developers, in a money laundering investigation.

A list of questions has been sent to the developer and the story will be updated after receiving a reply.