Delays in Shriram Summit Project: Appellate Tribunal Upholds Allottee's Claim
Delays in Shriram Summit Project: Appellate Tribunal upholds allottee's claim, setting a precedent for accountability in real estate. Read the in-depth analysis of this significant judgment. #RealEstate #Accountability #ShriramSummit
The Karnataka Real Estate Appellate Tribunal recently issued a landmark judgment in a case involving the Shriram Summit Project, where an allottee filed a complaint against Shriram Properties Limited. The complaint pertained to delays in project completion and possession handover, prompting the allottee to seek compensation. In a significant decision, the Appellate Tribunal upheld the allottee's claim, ordering the promoter to pay a substantial sum in compensation. This article provides an in-depth analysis of the case, its implications, and the key factors considered by the Tribunal.
The case revolves around the Shriram Summit Project, a real estate development undertaken by Shriram Properties Limited. The project is located in Veerasandra Village and Hebbagodi Village, Attibele, Anekal Taluk, Bengaluru Urban. The second respondent in the case, an allottee, had entered into an Agreement for Sale with Shriram Properties Limited to purchase a flat in the project. However, the project faced significant delays in completion and the subsequent handover of possession to the allottees.
Due to the prolonged delay, the allottee filed a complaint before the Karnataka Real Estate Regulatory Authority (RERA). The complaint sought compensation for the period of delay as per the terms agreed upon in the Agreement for Sale. RERA, after considering the complaint, conducted hearings where both the complainant and the representative of Shriram Properties Limited presented their arguments. The Authority also examined the relevant records and documents pertaining to the case.
Based on the evidence presented, RERA passed an order in favor of the allottee, directing Shriram Properties Limited to pay compensation for the delayed period as calculated from the agreed date of possession. The compensation amount was determined by applying the Marginal Cost of Funds Based Lending Rate (MCLR) plus an additional 2% interest rate.
Aggrieved by the RERA Authority's decision, Shriram Properties Limited filed an appeal before the Karnataka Real Estate Appellate Tribunal, seeking to set aside the order issued in CMP/220329/0009281.
During the appellate proceedings, the appellant-promoter and the allottee engaged in discussions and ultimately reached a settlement. The terms and conditions of the settlement were formalized in a Joint Memo, which was submitted to the Tribunal. Taking into account the settlement reached by both parties, the Appellate Tribunal disposed of the appeal in accordance with the terms agreed upon in the Joint Memo. The Tribunal ordered the release of the amount deposited by Shriram Properties Limited at the time of filing the appeal, along with any accrued interest.
This case has significant implications for the real estate sector, emphasizing the importance of adhering to project timelines and fulfilling commitments made to buyers. The Appellate Tribunal's decision underscores the accountability of developers in ensuring timely completion and possession handover, thereby protecting the rights and interests of allottees.
The Allottee's Complaint and RERA Authority's Decision
One of the allottees, represented as the second respondent in the case, entered into an Agreement for Sale with Shriram Properties Limited. However, due to delays in possession, the allottee filed a complaint before the Karnataka Real Estate Regulatory Authority (RERA) seeking compensation. After considering the complaint, hearing both parties, and examining the relevant records and documents, the RERA Authority issued an order in favor of the allottee.
The Appellate Tribunal Proceedings
Aggrieved by the RERA Authority's decision, Shriram Properties Limited filed an appeal before the Karnataka Real Estate Appellate Tribunal, challenging the order. The Tribunal, comprising Hon'ble Sri B. Sreenivase Gowda (Chairman), Hon'ble Sri K. P. Dinesh (Judicial Member), and Hon'ble Sri P. S. Somashekar (Administrative Member), heard the arguments presented by both parties.
Settlement and Joint Memo
During the course of the appeal proceedings, the appellant-promoter and the allottee reached a settlement. The terms and conditions of the settlement were reduced to writing and submitted to the Tribunal through a Joint Memo. The settlement agreement was carefully reviewed, ensuring it was made voluntarily and without any coercion or fraud.
Tribunal's Decision and Implications
Considering the settlement and the Joint Memo, the Appellate Tribunal disposed of the appeal in accordance with the agreed terms. The Tribunal ordered the release of the amount deposited by Shriram Properties Limited at the time of filing the appeal, along with any accrued interest. Both parties were directed to fulfill their respective obligations as per the settlement, aiming to avoid future litigation.
The Appellate Tribunal's decision in the case of delays in the Shriram Summit Project marks an important milestone in real estate dispute resolution. Upholding the allottee's claim for compensation, the Tribunal's judgment emphasizes the significance of timely project completion and possession handover. This ruling sets a precedent for promoting accountability within the real estate sector and ensuring the protection of buyers' interests.
By upholding the rights of the allottee and delivering a just resolution, the Karnataka Real Estate Appellate Tribunal has demonstrated the efficacy of the legal framework provided by the Real Estate (Regulation and Development) Act, 2016. This decision sends a strong message to developers regarding the importance of adhering to project timelines and fulfilling their commitments to buyers.
Note: The information provided in this article about Karnataka Real Estate Regulatory Authority (KRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the APPEAL NO. (K-REAT) 28/2023 before the Karnataka Real Estate Regulatory Authority
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