Bengaluru : KRERA noted that the delivery and completion date of the project was in 2019, well before the start of the pandemic in 2020.
The Karnataka Real Estate Regulatory Authority (KRERA) has ordered developer Shriram Properties to pay default interest on the pre-EMI component paid by the buyer after failing to hand over the apartment in accordance with the building agreement, for the Shriram Summitt project in Bengaluru.
The project was due to be handed over in 2019. The buyer, Sabyasachi Maiti and his wife Debjani Ghosh Maiti, booked the project in 2018 for around Rs 72.4 lak. Delayed by about three years, the Shriram Summitt project developed by Shriram Properties was supposed to be handed over in 2019. The Authority rejected appeals from the developer that the delays were caused by COVID-19.
KRERA rejected the appeal filed by the developer citing Covid-19 as the reason for the delay and asked the developer to pay late payment interest at the SBI's marginal cost of funds (MCLR) based lending rate, with 2 additional % per annum from 2018 to 2018. up to Rs 34.6 lakh, until the date of possession in 2022, within 60 days of order.
“The developer shall also pay interest on the amount paid by the buyer for the subsequent period of delay in paying late interest at the same rate,” the August 17 order adds.
Banks use MCLR to calculate the interest rate for various loans, including home loans.
