Karnataka RERA Orders Ozone Infra to Pay ₹19.87 Lakh Interest for Four-Year Delay

• Interest awarded for over four years of possession delay

• Developer failed to respond, proceedings held ex parte

• Buyers entitled to interest till possession is handed over

Bengaluru: In a significant ruling reinforcing homebuyer rights, the Karnataka Real Estate Regulatory Authority (Karnataka RERA) has ordered Ozone Infra Developers Pvt. Ltd. to pay ₹19.87 lakh as interest to two homebuyers for delaying possession of their apartment by more than four years.

The regulatory authority also directed the developer to hand over possession at the earliest after obtaining the Occupancy Certificate (OC) and to execute the registered sale deed in favour of the buyers. The order was passed by K-RERA Member G.R. Reddy, who proceeded ex parte after the developer repeatedly failed to file objections despite multiple opportunities.

Background of the Case

The dispute relates to a residential project named “Ozone Urbana Prime” in Bengaluru. The complainants had booked an apartment in the project and entered into an agreement for sale on September 3, 2018. As per the agreement, the developer was obligated to complete construction and hand over possession by June 30, 2021.

Records submitted before the authority showed that the homebuyers had paid an advance sale consideration of approximately ₹44.41 lakh. However, even after the committed possession date lapsed, the apartment was neither completed nor offered for possession.

Buyers Left Without Clarity

The homebuyers told the authority that the delay had extended beyond four years and that the developer had failed to communicate any tentative timeline for completion or delivery of the apartment. Despite repeated follow-ups, there was no clarity on when possession would be handed over.

During the hearings, the complainants, represented through legal counsel, submitted a detailed interest calculation memo, supported by payment receipts and the agreement for sale. The developer, on the other hand, continued to seek adjournments and eventually did not file a statement of objections.

Given this conduct, K-RERA placed the developer ex parte and decided the matter based on the evidence presented by the homebuyers.

K-RERA’s Observations

After examining the material on record, the authority observed that the delay in handing over possession was undisputed. It noted that the buyers had clearly fulfilled their financial obligations, while the developer had failed to meet the agreed delivery timeline.

“It is evident that the complainants have paid the advance sale consideration and that there is an admitted delay in handing over the apartment as per the agreement,” the authority recorded in its order. It further noted that the developer had not even indicated a probable date for completion.

Interest Awarded Under RERA Act

Invoking Section 18 of the Real Estate (Regulation and Development) Act, 2016, K-RERA held that homebuyers are statutorily entitled to interest when a promoter fails to deliver possession in accordance with the agreement for sale.

Accordingly, the authority directed Ozone Infra to pay interest at the rate of SBI MCLR plus 2%, calculated from June 30, 2021 until the date of handing over possession along with the Occupancy Certificate.

Based on the buyers’ calculation, the interest payable up to the date of the order came to ₹19,87,871, which the developer has been instructed to pay within 60 days.

Further Directions and Compliance

The order also clarified that interest will continue to accrue on a monthly basis until possession is finally handed over. Additionally, the developer has been directed to deliver the apartment with all promised amenities and complete the registration process without further delay.

K-RERA granted liberty to the homebuyers to initiate further legal proceedings if the developer fails to comply with the order, underlining the regulator’s firm stance against prolonged and unexplained project delays.

The ruling once again highlights how RERA authorities are actively enforcing accountability, offering relief to homebuyers caught in stalled or delayed real estate projects.