In a significant development, the long-standing dispute between Shriram Properties Limited and Shriprop Dwellers Private Limited has finally come to a resolution. The Karnataka Real Estate Appellate Tribunal facilitated the settlement, bringing an end to the legal battle over a delayed real estate project. The case, identified as Appeal No. (K-REAT) 31/2023, gained attention due to its implications on the real estate sector in Karnataka. Let's delve into the details of this case and the outcome reached through the agreement.
Background of the Case:
Shriram Properties Limited, a renowned real estate developer, was involved in the development of the "SHRIRAM SUMMIT" project located in Veerasandra Village & Hebbagodi Village, Bengaluru Urban. Shriprop Dwellers Private Limited, the allottee, had entered into an Agreement for Sale with the promoter on April 10, 2018, for the purchase of a specific flat in the project.
This Appeal is filed under Section 44 of the Real Estate (Regulation and Development) Act, 2016, before this Tribunal praying to call for the records and set aside the order dated 28th October 2022 passed by the 1st Respondent- Authority, in CMP/220329/0009283.
Allegations of Delay and Complaint Filing:
Due to a delay in project completion and subsequent possession handover beyond the agreed-upon timeline, the allottee filed a complaint with the Karnataka Real Estate Regulatory Authority (RERA). Seeking compensation in the form of interest for the delayed period, the complainant lodged CMP/220329/0009283 against Shriram Properties Limited.
RERA Authority's Order and Appellant's Challenge:
After careful consideration of the complaint, relevant documents, and arguments presented by both parties, the RERA Authority passed an order on October 28, 2022. The order, issued under Section 31 of the Real Estate (Regulation and Development) Act, 2016, directed Shriram Properties Limited to pay Rs. 13,86,081/- as compensation within 60 days. The amount represented the interest calculated from December 31, 2019, until July 5, 2022, at MCLR + 2%.
Appeal and Settlement:
Displeased with the RERA Authority's decision, Shriram Properties Limited exercised their right to appeal the order. However, during the course of the appeal process, both parties engaged in negotiations and reached a settlement. This resulted in the filing of a Joint Memo, formally documenting the agreed terms and conditions of the resolution.
Terms of Settlement:
The Joint Memo, dated March 24, 2023, was signed by the authorized representatives of Shriram Properties Limited, the appellant, and the 2nd respondent-allottee, Mr. Prout Chakma. The settlement, entered into voluntarily and without any coercion, resolved all claims mentioned in the original complaint and the subsequent appeal.
Disposal of the Appeal and Tribunal's Order:
Considering the settlement reached by the parties, the Karnataka Real Estate Appellate Tribunal disposed of the appeal in accordance with the terms of the Joint Memo. The Tribunal ordered the release of the amount deposited by Shriram Properties Limited at the time of filing the appeal, along with any accrued interest, in compliance with the proviso to Section 43(5) of the Act.
The resolution of the Shriram Properties' appeal at the Karnataka Real Estate Appellate Tribunal marks an important milestone in the real estate sector. The amicable settlement between the parties involved not only avoids prolonged litigation but also highlights the significance of dispute resolution mechanisms in the industry. This case serves as a reminder of the importance of adhering to agreed timelines and addressing grievances promptly to maintain trust and accountability in the real estate market.
In conclusion, the Karnataka Real Estate Appellate Tribunal's role in facilitating the resolution of the Shriram Properties' appeal demonstrates the effectiveness of alternative dispute resolution methods within the legal framework. The settlement reached between the parties ensures closure to the dispute and emphasizes the importance of timely project completion and adherence to contractual obligations in the real estate sector.
Note: The information provided in this article about Karnataka Real Estate Regulatory Authority (KRERA) is for informational purposes only. It is not intended as legal or professional advice and readers should consult qualified professionals for advice specific to their circumstances. The information provided in this article is based on the APPEAL NO. (K-REAT) 31/2023 before the Karnataka Real Estate Regulatory Authority
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