The Karnataka Real Estate Regulatory Authority (RERA) has issued a strong directive to Ozone Infra Developers, ordering the company to refund ₹70.33 lakh to a homebuyer for failing to deliver possession of an apartment on time. The refund includes the principal amount paid by the buyer along with applicable interest.
The case pertains to a unit in the “Ozone Urbana Prime” residential project, for which the buyer had entered into a sale agreement with the developer on September 5, 2018. According to the agreement, possession of the apartment was to be handed over by June 1, 2021. However, the project faced prolonged delays, and the promised possession date passed without any updates or communication from the developer. The buyer had already paid ₹51.39 lakh, a majority of which was funded through a home loan.
When the matter was brought before the Karnataka RERA, the developer failed to appear or file a response even after being granted time until June 6, 2025. The authority then proceeded ex parte and relied on the buyer’s submission and calculation of the refund amount.
In its final order, RERA concluded that the developer had breached the terms of the agreement by not delivering possession or offering any updated timeline. Citing precedents from the Supreme Court, including the Newtech Promoters and Imperia Structures cases, the RERA bench affirmed that homebuyers are entitled to a refund with interest under Section 18 of the RERA Act when possession is delayed without sufficient cause.
The authority allowed the buyer to withdraw from the project and directed the developer to pay a total of ₹70,33,424 within 60 days of the order. The ruling is seen as a significant affirmation of homebuyer rights under RERA and sets a precedent for similar disputes.
While the judgment is a win for the complainant, the larger issue of enforcement remains. Many such refund orders issued by RERA across the country often face delays in actual execution, with buyers needing to approach revenue authorities for recovery. Nonetheless, this case underscores the growing legal support available to aggrieved homebuyers and highlights the importance of regulatory oversight in the real estate sector.
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