Bengaluru RERA tribunal orders Rs 34.4 lakh refund with interest after 9-year homebuyer battle

After nearly a decade of waiting, Bengaluru homebuyers Kiran Sarath and his mother Saubhagya finally secure justice as the RERA Appellate Tribunal orders a builder to refund their advance with interest, setting a major precedent in Karnataka’s real estate sector.

For Bengaluru residents Kiran Sarath and his mother Saubhagya, the dream of owning a home turned into a nightmare that stretched across nine years. Their long wait for justice has finally ended, as the Karnataka RERA Appellate Tribunal directed a city-based builder to refund their advance of Rs 34.4 lakh along with 9% annual interest.

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The duo had booked a flat in 2013 at the Soudela Queen Gate project near Begur-Hulimavu Road. Over the years, they paid nearly half of the flat’s price, only to see endless delays and broken promises. Despite repeated assurances, the builder neither handed over the apartment nor completed registration, even as other buyers received agreements promising quicker delivery.

By 2022, BBMP issued only a partial Occupancy Certificate, yet the flat remained undelivered. Frustrated, the buyers walked away, demanding their money back. Though RERA initially ordered a refund in 2023, it denied them interest, claiming they had opted out voluntarily.

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Unwilling to accept this, the buyers appealed. The tribunal, after reviewing emails and evidence of construction delays, ruled that the builder had violated Section 13 of the RERA Act by collecting more than 10% of the flat’s cost without a registered agreement. The tribunal also noted the unreasonable timeline, nearly a decade to secure even a partial OC.

The order now ensures that Kiran and his mother receive not only their Rs 34.4 lakh but also interest for the years lost, turning their personal struggle into a landmark victory for homebuyers across Karnataka.

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