April 23, 2024: The Karnataka Real Estate Regulatory Authority (KRERA) has instructed Suvilas Properties, a subsidiary of Bangalore-based listed real estate firm Shriram Properties Ltd (SPL), to reimburse the entire booking amount to a buyer. This decision comes after the developer provided inaccurate information to the buyer prior to the sale.
In this instance, the developer sold an apartment to the buyer for Rs 1.2 crore, claiming that the high-rise building would have 27 floors with RERA approval. However, the project only had 20 floors. KRERA issued the order on April 17, 2024, mandating the developer to refund the booking amount of Rs 50,000 with interest. The project, named ‘The Poem,’ is situated near Yeshvanthpur Hobli in north Bengaluru. It is an ongoing project with RERA registration valid until 2026.
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Following the reservation of the flat with the booking amount, the homebuyer, Amitkumar Kuhikar, discovered on the RERA website that the project had only 20 floors. Despite assurances from the developer that RERA approval would be obtained for 27 floors, no timeline was provided. Consequently, on March 23, the homebuyer requested the cancellation of the booking and the refund of the amount paid.
KRERA observed that the developer had provided incorrect information regarding the number of floors and RERA approval status. Despite multiple reminders via email, the developer failed to refund the money invested by the homebuyer. As a result, KRERA directed the developer to refund the entire amount with interest. Currently, ‘The Poem’ project has two additional complaints lodged with the authority regarding the non-refund of booking amounts of Rs 50,000 and Rs 1 lakh respectively, filed last year.
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Dhwani is a content management expert with over five years of professional experience. She has authored articles spanning diverse domains, including real estate, finance, business, health, taxation, education and more. Holding a Bachelor’s degree in Journalism and Mass Communication, Dhwani’s interests encompass reading and travelling. She is dedicated to staying updated on the latest real estate advancements in India.
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