KOCHI : The Kerala Real Estate Regulatory Authority (KRERA) has ordered Kochi-based Galaxy Homes to pay an interest rate of 16.85% per annum for failing to complete an apartment and deliver it to a customer. The order was issued by KRERA member M P Mathews following a complaint filed by Sunil Nambiar, a resident of Ponnuruni, Vyttila.
It was in November 2018 that Sunil paid Rs 25,000 as advance for buying a flat with a specified car parking area in an apartment Galaxy Emerald to be constructed on 27.107 cents of land at Elamkulam. The agreed value of the flat was Rs 59.54 lakh, including all taxes. A sale agreement was executed on December 12, 2018, with the delivery date promised to be on November 30, 2020. Sunil availed a loan of Rs 47.95 lakh and paid around Rs 50.95 lakh towards the purchase of the flat.
However, when the construction of the flat was not completed even on June 11, 2022, the builders organized a meeting with purchasers. At the meeting, it was agreed that flats would be delivered by November 30, 2022, on assurance that in case the work was not completed, the purchasers would be paid rentals at a rate of 18% of the invested amount from December 2022.
But the promised date of delivery was further extended to March 31, 2023, and purchasers agreed on assurance of rental terms. However, when the deadline was not met again, it prompted Sunil to approach the KRERA with a complaint. While considering the case in September 2023, the KRERA ordered Sunil to pay the remaining Rs 9.32 lakh to the builder. The builder was directed to hand over possession of the apartment, duly completed as per the agreement within 15 days.
Though Sunil paid the balance amount, Galaxy Homes did not hand over the flat’s possession as per KRERA order. In a report filed by the assistant executive engineer of the Kochi corporation, it was stated that project land falls under the wetland category and CRZ Zone 2. Hence, the building permit was not renewed. Meanwhile, the builder has challenged the matter regarding the permit before the Kerala High Court.
In case the builder fails to comply with the order, Sunil is at liberty to recover the amount from the respondent and their assets as per the Real Estate Act and Rules.
Builders booked
Kadavanthra police have also registered a case against Galaxy Homes MD P A Ginas and three directors Suniya Ginas, Muhammed Nuayin Ginas and Nuriyan Ginas following a complaint filed by Sunil for cheating, and criminal breach of trust