Karnataka Tribunal Overturns KRERA Ruling, Grants Relief to Senior Citizen After 12-Year Villa Possession Delay
BENGALURU, India – May 14, 2025 – In a landmark decision, the Karnataka Real Estate Appellate Tribunal (KREAT) has overturned a previous order by the Karnataka Real Estate Regulatory Authority (KRERA), granting long-awaited relief to a 75-year-old homebuyer who waited over 12 years for possession of a luxury villa.
The Tribunal has directed Sterling Urban Developers Pvt Ltd, a Bengaluru-based real estate company, to immediately hand over possession of the villa (Villa No. C-96) and pay 9% annual interest for every month of delay leading up to April 2017.
“The order dated May 2023, passed by the Karnataka Real Estate Regulatory Authority, is hereby set aside,” the Tribunal ruled. “Sterling Urban Developers Private Limited is directed to hand over the physical possession of the Villa bearing No. C-96 to the allottee within one month.”
A 12-Year Wait for Justice
The senior citizen had booked the villa over a decade ago, expecting timely possession as per the agreement. However, despite repeated follow-ups, the project saw long delays, with no handover of the promised home. Initially, the complainant approached KRERA, which passed an order in May 2023 that failed to provide substantial relief.
Disappointed, the buyer escalated the case to the appellate tribunal, which not only reversed the KRERA order but imposed financial penalties on the developer in the form of interest payments for the period of delay.
Legal Backing and Tribunal’s Findings
The Tribunal cited Section 8 of the Karnataka Ownership Flats Act, which holds developers liable for delays in delivering possession, unless reasons for delay are justified under force majeure or similar circumstances.
The developer was found to have no acceptable justification for the prolonged delay, leading to the Tribunal’s strict directive. It noted that such long wait times are especially harsh for senior citizens, who often invest life savings into property for a secure retirement.
Implications for Developers and Buyers
This judgment sends a strong message to real estate developers: delays without consequence are no longer acceptable, particularly under India’s evolving regulatory environment that aims to protect homebuyers under the Real Estate (Regulation and Development) Act, 2016 (RERA).
For buyers, especially vulnerable populations such as senior citizens, this case sets a precedent. It reaffirms that justice is accessible through appellate mechanisms, even when initial rulings fall short.
What’s Next
Sterling Urban Developers has been given one month to hand over the villa and comply with the interest payment ruling. Failure to do so could result in enforcement action, including legal penalties or further compensation claims.
Meanwhile, real estate legal experts believe this case could influence upcoming RERA and Tribunal proceedings involving similar delays, with greater accountability expected from developers in Karnataka and across India.
Conclusion
This judgment by the Karnataka RERA Tribunal not only corrects a long-standing injustice for a senior citizen but also reaffirms the growing strength and role of real estate regulatory mechanisms in India. It marks a significant win for homebuyers, reinforcing their right to timely possession and fair compensation in the face of unjust delays.
