The Karnataka Real Estate Regulatory Authority (KRERA) has directed Embassy One Developers Pvt Ltd, a subsidiary of the Embassy Group, to pay Rs 4.2 crore in compensation to homebuyers for delays in the delivery of their luxury apartments. This decision comes after the developer failed to meet the handover date, extending the wait for possession by five years.
According to KRERA documents, the luxury project Embassy One, located in north Bengaluru, was initially registered with the authority in 2019. The project received a nine-month extension in 2020 due to the Covid-19 pandemic. However, the developer missed the extended deadline, leading KRERA to further extend the completion date to 2026 in March 2024.
The authority highlighted that despite requesting a three-month period to file objections, Embassy One Developers did not comply. Consequently, KRERA ordered the developer to compensate homebuyers from the promised handover date until the actual possession date. Additionally, the developer is required to pay interest for any further delays in the project's completion.
One notable case involves homebuyer Poonam Prabhu, who booked an apartment in Embassy One for Rs 7.8 crore in 2016. The initial handover date was set for 2018, but as of 2024, she has yet to receive possession of her apartment.
Embassy One is a premium luxury project spread over more than six acres, featuring 109 apartments across two towers with 1-5 BHK options.
KRERA's order emphasized the significant financial commitment made by homebuyers and the consequent entitlement to delay interest under Section 18 of the RERA Act.
Further data from KRERA reveals that the developer has over 11 complaints lodged against them in Bengaluru, with the majority being settled out of court.
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