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Bengaluru resident wins ₹70 lakh from builder over failure to deliver promised apartment. Here's how: Report

In a ground-breaking ruling, a Bengaluru resident secured over 70 lakh from a builder after prolonged delays in the delivery of an apartment. 

Published on: Jul 20, 2025, 08:46:09 IST
By , Bengaluru
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A Bengaluru resident’s relentless pursuit of justice has resulted in a landmark order: the builder must pay him over 70 lakh after a long delay in delivering an apartment near the Kempegowda International Airport (KIA), as per a report on The Economic Times.

On July 1, Karnataka RERA ruled that the builder refund the entire sum paid by the buyer — plus an additional  ₹19 lakh as interest for the years lost. (HT Photo)
On July 1, Karnataka RERA ruled that the builder refund the entire sum paid by the buyer — plus an additional ₹19 lakh as interest for the years lost. (HT Photo)

Here's how he won the case

Back in 2018, the buyer secured an apartment in the Ozone Urbana Prime project, trusting the developer’s promise of possession by June 2021. Yet, as years rolled by and the building remained unfinished—its license even expired— the buyer was left in limbo, despite having paid 51 lakh through a home loan.

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Realizing the builder’s repeated delays and broken commitments, the owner invoked the Real Estate (Regulation and Development) Act, 2016 (RERA), filing a complaint under Section 18 of the law. This provision gives homebuyers an unambiguous right to seek a refund plus interest if the builder fails to meet the delivery timeline or is unable to complete the project.

On July 1, 2025, Karnataka RERA ruled decisively in the homebuyer’s favour, demanding that the builder refund the entire sum paid—plus an additional 19 lakh as interest for the years lost—within 60 days. In total, the developer must pay more than 70 lakh, or risk further recovery action initiated by the buyer, the report said.

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The tribunal cited Supreme Court judgments reinforcing that Section 18 grants homebuyers a guaranteed remedy: either withdrawal with a full refund and interest, or monthly interest for delays if they choose to wait. The decision not only provided substantial relief for this homeowner but set a robust precedent for others facing similar predicaments.

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