Karnataka Rera Order Prestige Group To Pay Compensation For Delay

The Karnataka Real Estate Regulatory Authority (KRERA) has asked the Bangalore.-based real estate builder, the Prestige Group, to pay Rs 2.17 lakh as redress to the buyer. The builder has failed to deliver the flat in Prestige Bagmane Temple Bells within the defined time.

The upheaval is due to ongoing litigation in the National Green Tribunal. It is the effect of the lake buffer zone that comes near the project. Even after the buyer has taken custody, KRERA has stepped forward on this case and passed the order.

According to the order on May 20, it quoted that the developer needed to pay the compensation for the delay within 60 days of the order. It also stated that the buyer, Pramod SM to pay his remaining installments of Rs 76,774. The housing project is close to Rajarajeshwari Nagar. It was expected to be complete and offered to Pramod by 2018. However, the builder could only acquire the OC in 2019.

According to the builder, the complaint was not justifiable since the buyer had already moved into the flat and had been living there since 2019. The project was completed in 2017. Rather, the hiccups were due to NGT's delay in issuing the OC. The builder claimed that the delay in handover was due to uncertain situations.

After mulling both sides, KRERA noted that there was a delay of about seven months in the delivery of flats to the buyer. Even though the builder Prestige Group was not liable for the delay, it told the builder to pay redress to the buyer. As per the order, the builder has to pay Rs 2.17 lakh in redress, considering the SBI Lending Rate, based on the marginal cost funds with an extra 2 percent interest for the delay.

Prestige Raintree Park is a new launch project by the Prestige Group at Whitefield, East Bangalore. Its bookings are already open and are only for a limited time. It is one of the most posh mix-use projects, which includes housing towers, a mall, and workspace inside the same campus. It offers 3, 4, and 5 bhk homes along with 500+ retained trees and huge open spaces. It consists of 50+ urban features and stands at the prime spot of the city.