Karnataka RERA Holds Landowner and Developer Accountable for Failure to Execute Sale Deed
Karnataka RERA Holds Landowner and Developer Accountable for Failure to Execute Sale Deed
The Karnataka Real Estate Regulatory Authority (KRERA) has held a landlord and an absconding developer accountable for failing to execute the sale deed with a homebuyer for a Bengaluru-based project.
Balakrishna Vegi, a homebuyer, signed an agreement for an apartment in Bengaluru in September 2011. He paid ₹32 lakh over several installments to the developer, Yogananda Reddy, and an additional ₹4 lakh to the landowner, Bharat A.
The KRERA order dated June 23 noted that despite signing the sale agreement, both the developer and the landlord failed to execute the sale deed within the stipulated time as per the agreement.
The KRERA has held the developer and landowner accountable and has asked them to execute the sale deed within 30 days of the order date.
Pavan Tranquil Homes, a project developed by Pavan Builders, is located in Uttarahalli Hobli, a southern suburb of Bengaluru.
Vegi who had paid for the house by availing home loan from Vijaya Bank told KRERA that the sale deed was supposed to be executed by December 2019 under the agreement.
“However, after receiving the money, the developer went absconding and changed all contact numbers, including email ID," Vegi stated.
Currently, the landowner has received ₹4 lakh from the homebuyer as payment towards the project's completion. The order explicitly references a single buyer, leaving ambiguity regarding whether the developer has also collected funds from other buyers.
Vegi, who was facing significant financial hardship, relocated to the project in November 2013 despite the absence of a sale deed.
According to the mentioned order, the landowner is currently requesting ₹10 lakh to proceed with the execution of the sale deed. As a result, the homebuyer has sought relief from KRERA.
In its findings, KRERA observed that despite the developer and landowner having handed over the apartment, they have neglected to carry out the sale deed, thereby breaching the terms of the sale agreement.
"It is obvious that the homebuyer has paid the entire amount to the respondents. And having accepted the money without executing the sale deed, the developer and the landowner have failed to keep to their promises," KRERA said.
Furthermore, KRERA emphasised that the responsibility to execute the sale deed lies with the developer and landowner, and they are required to fulfill this obligation within 30 days from the date of the order.
