Karnataka Real Estate Regulatory Authority has directed a Bengaluru-based developer and its partner to pay ₹12 lakh per year to a homebuyer towards loss of rent after failing to hand over possession of a flat despite executing the sale deed.
The authority also ordered ₹2 lakh as compensation for mental agony caused to the buyer.
Flat sold but possession withheld
The case involved Surya Homes and partner Bagpack Suites Bangalore Pvt Ltd.
According to the order, the complainant booked an apartment in the Surya Elegance project in July 2019 and later completed full payment in December 2019.
The buyer reportedly paid ₹17.7 lakh initially, followed by ₹93.2 lakh later, besides spending around ₹20 lakh on interiors, taking the total investment to nearly ₹1.30 crore.
Rent promise cited
The homebuyer told the authority that the developer agreed to pay rent of ₹1.06 lakh per month from the date of registration while continuing to occupy the flat.
The buyer alleged only ₹7.69 lakh had been paid so far, while large dues remained pending.
Builder disputed claim
The developer argued that construction had been completed in 2018 and an occupancy certificate had already been secured.
It further claimed that once the sale deed was registered, its obligation ended, and that rent-related disputes were outside RERA jurisdiction.
KRERA rejects stand
The authority observed that full payment had been received but possession was still withheld, depriving the buyer of using the apartment or earning rental income.
KRERA said it could not ignore prevailing rental realities in a metropolitan city like Bengaluru, adding that the buyer had suffered financial loss, hardship and uncertainty.
Order passed
The respondents were directed to pay ₹12 lakh annually from December 6, 2019 until physical possession is handed over, after adjusting any rent already paid.
An additional ₹2 lakh was awarded for mental agony.
Relief for buyers
The ruling is being seen as a strong reminder that homebuyers cannot be denied possession after completing payment