KRERA Orders Refund by Shriram Properties Over Misinformation

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    The Karnataka Real Estate Regulatory Authority (KRERA) has instructed Suvilas Properties, a subsidiary of Bengaluru-based Shriram Properties Ltd (SPL), to reimburse a homebuyer for providing incorrect information before the sale.

    In this instance, the developer sold an apartment worth Rs 1.2 crore, claiming the high-rise had 27 floors with RERA approval. However, the project only had 20 floors.

    On April 17, KRERA ruled that the developer must refund the booking amount of Rs 50,000 along with interest. The project, named ‘The Poem,’ was acquired by Shriram Properties in 2022.

    The project is located near Yeshvanthpur Hobli in north Bengaluru and is ongoing with RERA registration valid until 2026.

    After reserving the flat, the homebuyer, Amitkumar Kuhikar, discovered on the RERA website that the project had only 20 floors, contrary to what was claimed by the developer.

    Despite promises of RERA approval, the developer could not provide a timeline. As a result, on March 23, the homebuyer requested a cancellation and refund of the amount paid.

    KRERA found that the developer provided incorrect information about the number of floors and RERA approval. Despite reminders, the developer did not refund the money.

    KRERA ordered the developer to refund the full amount with interest.

    Currently, ‘The Poem’ project has two additional complaints regarding refund issues registered at the authority.

    In another case last year, the developer failed to register a sale agreement as required by the RERA Act, resulting in KRERA ordering SPL to refund the entire amount with interest.

    In November 2022, SPL acquired 100 percent equity of Suvilas Realities Private Ltd, allowing it to develop 0.65 million square feet with potential revenue of Rs 400 crore.

    Also read : Bollywood Star Amitabh Bachchan Invests in Luxury Villa in Alibaug

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