Bengaluru homebuyers win full refunds, interest and compensation after 20-year delay

Twelve homebuyers, fronted by Manjula Doma Roy Verghese, collectively invested Rs 1,15,50,000 in the Gruha Kalyan Erica residential scheme in Bengaluru, yet possession has not been delivered for over twenty years. Citing Supreme Court precedents that treat delayed handover as a service deficiency, the real-estate commission ordered the developer to refund the full amount with 9% interest calculated from each deposit date, payable within 45 days, after which the rate escalates to 12%.

The builder was also mandated to pay Rs 35,50,000 as compensation for the prolonged harassment and to reimburse the plaintiffs’ legal expenses. Six additional complaints against the same builder received identical orders, while a separate case was closed and remaining applications were resolved. The decision underscores the judiciary’s stance on protecting buyers from protracted project delays.