Bengaluru's Mantri group tells SC that it has transferred possession of its delayed project

By Bricksnwall | 2024-05-03

Buyers claimed that they could not take possession of their flats because, contrary to what the developer told the Supreme Court, many properties were not ready for possession because they lacked an OC, which is required before giving over possession.

During a recent Supreme Court hearing, Bengaluru-based developer Mantri Castles Private Ltd informed the court that it had offered possession to buyers of flats in its delayed Mantri Serenity project. However, Moneycontrol discovered that numerous flats had failed to receive occupancy certificates (OCs). RERA statutes and bylaws of the Bruhat Bengaluru Mahanagara Palike (BBMP) — the city's municipal body – require OCs before possession may be offered.

On April 30, the Supreme Court (SC) took up the case based on representations submitted by Senior Counsel Bishwajit Bhattacharyya, who is representing the homebuyers.

Between 2015 and 2019, about 48 homeowners from the delayed property approached the Supreme Court after the developer failed to offer possession.

On April 2, 2024, the corporation informed the court that all buyers had received letters of ownership, although few had yet to take possession of their flats.

Following this, the court ordered that the homebuyers visit the project on April 16 and take possession from the developer.

However, Moneycontrol discovered that at least three homebuyers who toured the complex were promised ownership even though the flats lacked an OC.

"Towers 4 and 5 have partial OCs from the Bengaluru Development Authority (BDA), whereas Towers 1 and 3 have no OC.

 As a result, homeowners could not take possession on April 16," claimed a homebuyer who did not want to be identified.

Another homebuyer claimed that, despite the SC's order for the transfer, the developer unilaterally cancelled his agreement. During the April 30 hearing, the developer informed the SC that the flat was still available for possession. 

The Supreme Court has ordered a status quo on the flat pending further decisions.

Background

Buyers filed an initial complaint with the National Consumer Disputes Redressal Commission (NCDRC) when the developer failed to deliver their homes within the timeframe provided. Based on the NCDRC's advice, 48 buyers who bought flats for Rs 75-95 lakh between 2013 and 2016 filed a petition with the Supreme Court.

Moneycontrol said that the Supreme Court issued an interim judgment in November 2023 instructing the developer to transfer possession of the Mantri Serenity property to homeowners.

Despite having paid about 100% of the purchase price, homebuyers have yet to be awarded ownership. The court orders that the relevant flats/property/premises be handed over to the appellants within one week," the judgment dated November 7 stated.

A list of questions has been provided to the Mantri group, and the story will be updated after they respond.

Source: Money Control