Karnataka RERA has directed prominent real estate developers Sobha Limited to return the investment of the buyer along with 9% annual interest, even if the execution of the project was on time.
Customer Hemambika Subramani booked a flat in the Sobha Valley View project in southern Bengaluru. The construction of the project was on time. However, the project’s land was attached by authorities under the Benami Transactions (Prohibition) Act, 1988. Therefore, the customer approached the RERA, alleging that the developer failed to give possession of the property to her. But Sobha Limited responded, saying that it is ready to take possession of the property, having completed the project on time and securing the necessary certificates. As the income-tax department attached the land to the property due to a land dispute, the property could not be transferred and no transactions on it could be entertained. Therefore, the RERA sided with the customers and made it clear that the purchaser has every right to get back his amount along with the prescribed interest. Therefore, it directed the developer to return the investment along with the interest to the customer.
