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The Karnataka Real Estate Regulatory Authority (KRERA) has recently issued a significant order against Provident Housing, a subsidiary of Puravankara Ltd, in response to delayed delivery of the Provident Noera apartment complex, located in the bustling real estate area of Yelahanka, north Bengaluru. Despite the project's launch date being a subject of dispute between the developer and homebuyer, the authority's ruling highlights the challenges faced by homebuyers due to prolonged project delays and subsequent financial burdens.
The order underscores the plight of the homebuyer, Dasari Naresh, who has been making EMI payments for several years without possession of the apartment. Naresh signed the sale agreement in 2019, with an expected handover date of 2023, but ongoing delays prompted him to seek redress through KRERA. The authority invoked Section 18 of the RERA Act, holding Provident Housing accountable for compensating Naresh for the financial losses incurred due to the prolonged delay.
This ruling comes at a critical juncture when homebuyers across the country are grappling with high home loan interest rates as the Reserve Bank of India has decided to maintain the repo rate at 6.50 percent. With home loan rates ranging between 8-15 percent in various banks as of March 2024, the financial strain on homebuyers awaiting possession of delayed projects has become increasingly burdensome.
In response to KRERA's order, Provident Housing has expressed its commitment to complying with the directive, emphasizing that the project's delay was attributed to regulatory challenges, particularly concerning height clearance from the Government Flying Training School (GFTS) at Jakkur. The developer maintains that while the project was completed on schedule, obtaining the occupancy certificate was delayed due to external factors beyond their control. Despite this setback, Provident Housing assures stakeholders that the clearance issue has been resolved, and the project has since been granted occupancy clearance.
The case serves as a reminder of the complexities and challenges inherent in India's real estate sector, where project delays often result in financial hardships for homebuyers and legal battles between developers and regulatory authorities. As the industry continues to grapple with issues of transparency, accountability, and timely project delivery, KRERA's intervention underscores the pivotal role of regulatory oversight in safeguarding the interests of homebuyers and fostering a fair and transparent real estate ecosystem.
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