1. This complaint is filed under section 31 of the RERA Act against the project "Mantri Webcity 2B" developed by "Mantri Developers Private Limited" situated at Hennur Main Road, Near Southern Asian Bible college, Bengaluru for the following reliefs:-

a) Direct the promoter to refund a sum of Rs. 6,97,576/- paid by me along with interest for delay compensation at the rate of 12% from the date of payment till repayment.

b) Direct the Promoter to pay all delayed PRE-EMI instalment along with interest on the Delayed PRE-EMI instalment at the rate of 12% per annum from the respective date of delay, which has been paid by me to the Axis Bank including all processing fee etc.

c) Direct the Promoter to close the Bank loan and get me No Due certificate.

d) Compensation for the Mental Agony and pain and Damages to an extent of Rs. 5,00,000/-.

e) Compensation for unfair Trade practice to an Extent of Rs. 3,00,000/-.

f) Cost of litigation and expense to an Extent of Rs. 50,000/-. We kindly request RERA to look at our case with compassion and allow our complaint.

2. This project has been registered under RERA bearing Registration No. PRM/KA/RERA/1251/310/PR/171015/000620 and was valid till 31/03/2022. The Authority, has given COVID extension for 9 months i.e., till 31/12/2022.

3. Facts of the complaint are as under:-

"I state that the Promoter/Respondent i.e., Mantri Developers Pvt. Ltd., herein had offered a scheme to buy apartment in a residential project Mantri Web City, wherein the Promoter offered to pay PRE-EMI instalment until completion of the project and handing over the project with an option to exit out of the project with assured returns of 100% of the initial payment I state that in pursuance of the same, i booked an Apartment bearing No. L-1606 in Tower L for a total consideration of Rs. 66,08,631/- including all taxes and amenities charges. Out of the said Sale Consideration, I have paid a sum of Rs. 6,97,576/-. I state that the condition of the promoter was that I should be eligible for Bank loan from Axis Bank/INDIABULLS/AXIS Bank based on my financial capacity. I state that the promoter raised loan through us to finance the project giving certain option either to retain the apartment or return the project after certain period of time, if the project is not built satisfactorily to us or any other reason which need not be informed by me. I state that i got arranged for a loan from Axis Bank to an extent of Rs. 45,47,810/- and out of the said loan a sum of Rs. 41,12,989/- same was disbursed to the Respondent/Promoter, as such we have totally paid a sum of Rs. 48,10,565/-. I state that the Respondent/promoter as per the scheme for purchasing apartment by way of Buy-Back scheme/Assured Return Scheme, whereby, the promoter promised and assured to pay PRE-EMI instalment till the completion of the project.

I request to file detailed claim statement and additional documents during the course of hearing. I state that even after the lapse of consider time the promoter has failed to show any development and non payment of the PRE-EMI has created huge financial crisis as such I intend to exit out of the project and seek for refund of my money, pre-emi, interest, delayed compensation etc., Hence for the brief facts mentioned above we are seeking for following Reliefs:- 1. Direct the promoter to refund a sum of Rs. 6,97,576/- paid by me along with interest for delay compensation at the rate of 12% from the date of payment till repayment. 2. Direct the Promoter to pay all delayed PRE-EMI instalment along with interest on the Delayed PRE-EMI instalment at the rate of 12% per annum from the respective date of delay, which has been paid by me to the Axis Bank including all processing fee etc. 3. Direct the Promoter to close the Bank loan and get me No Due certificate. 4. Compensation for the Mental Agony and pain and Damages to an extent of Rs. 5,00,000/-. 5. Compensation for unfair Trade practice to an Extent of Rs. 3,00,000/- 6. Cost of litigation and expense to an Extent of Rs. 50,000/'-. We kindly request RERA to look at our case with compassion and allow our complaint."

4. The matter had been decided by the Hon'ble Adjudicating Officer, RERA vide Order dated 11/03/2020, and the Complainant/Allottee had preferred an Appeal (K-REAT) No. 313/2020, before the Hon'ble Karnataka Real Estate Appellate Tribunal, Bangalore. The Hon'ble Tribunal vide Order dated 11/01/2022 in the above said appeal had remanded the matter back to this Authority for fresh adjudication in view of the Apex Court Judgment in M/s. Newtech Promoters and Developers Pvt. Ltd. Vs. State of U.P. & Ors. Etc. In Civil Appeal No(s). 6745 - 6749 of 2021 reported in 2021 SCC ONLINE SC 1044.

5. In pursuance to the matter being taken up for fresh adjudication, the notice was issued by the authority to both the parties, and the Complainant appeared on 07/03/2023, whereas the Respondent had chosen to remain absent, hence placed ex-parte. The complaint is filed for refund of the amount. The complainant has sought for refund of his amount with agreed 2X amount.

6. It is the case of the Complainant that

a) The Respondent Developer in order to attract customers/home buyers offered a pre-EMI Scheme i.e., pre-sanctioned loans in order to purchase the apartment unit/s in their project. The Complainant herein interested in the said scheme, after survey of the site for the project, located at Hennur Road, Bengaluru booked their apartment unit bearing No. L 1606, situated at 16th Floor, Tower L, in the aforementioned project on 17/05/2015.

b) In pursuance to the booking of the apartment unit, the Complainant signed off on Pre-EMI Scheme with the Respondent Developer wherein the Respondent Developer stated that the only method of purchasing the apartment unit was by opting for this Scheme, wherein the purchaser would mandatorily avail a loan solely from Axis Bank, to the extent of 75-80% of the sale consideration amount and the Complainant would only have to contribute 20-25% of the sale consideration amount. Under this Pre-EMI Scheme, the Respondent Developer assured that until June 2018 (31/06/2018), the Respondent Developer would discharge the EMI to the financial institute, i.e., Axis Bank.

c) In furtherance to the Pre-EMI Scheme, the Complainant entered into a construction agreement dated 27/06/2015 and a sale agreement dated 27/06/2015 with respect to purchase of apartment unit No. L 1606, situated at 16th Floor, Tower L, in the project known and called as "Mantri Webcity".

d) That prior to the sanction of loan to the Complainant, the Complainant along with the Axis Bank, the financial institute issued a Letter undertaking and the Respondent Developer had mutually agreed that the disbursal of loan to the Petitioner for the purpose of purchase of the apartment unit will be subject to the terms and conditions agreed upon by all three parties. Accordingly, the entire loan will be disbursed to the Respondent Developer, as such Axis Bank has disbursed the sanctioned loan directly to the Respondent Developer. In furtherance thereto, the Respondent Developer had also issued a letter dated 17/07/2015 wherein the Respondent Developer undertook to repay the entire loan outstanding in the event of cancellation of allotment by the Complainant.

e) The Complainant herein have paid a sum of (i) Rs. 6,97,576.00 on 26/06/2015 and (ii) Rs. 93,812/- on 06/04/2017, totally amounting to Rs. 7,91,388.00 paid to the Respondent Developer in the year 2014-15 towards the contribution of the Complainant. It is further submitted that Axis Bank had sanctioned a loan to the tune of Rs. 43,21,585.00, and out of the said amount, 3 Rs. 9,65,178.00 was disbursed on 25/06/2015 to the Complainant and the said amount was disbursed in favour of the Respondent Developer as mutually agreed. In addition to paying Rs. 7,91,388.00, the Complainant has paid several PRE-EMI amounts to Axis Bank as the Respondent Developer failed to pay the same on his behalf, amounting to a total of Rs. 9,88,824.00. In total, the Complainant has paid an amount of Rs. 17,80,212.00.

f) It is contractually clear that by virtue of Annexure B-1 to the Construction Agreement dated 27/06/2015, the apartment unit booked by the Complainant would be ready for handover of possession on 30/04/2018. However, the Respondent Developer has neither delivered the possession of the unit nor paid the Pre-EMI amount as agreed and thus, the Complainant on 23/07/2017 issued an E-mail to the Respondent No. 7 expressing their intention to withdraw from the project in consonance with the terms agreed upon in the Pre-EMI Scheme. It is submitted that subsequently the Respondent Developer herein acknowledged and accepted the withdrawal vide e-mail dated 02/08/2019.

g) That though the Respondent No. 7 developer accepted the notice of withdrawal filed by the Complainant, in spite of several requests, failed to refund the contribution paid by the Petitioners, as such the Petitioners were constrained to initiate the instant Complaint against the Respondent Developer.

h) That the Complainant through telephonic conversations and e-mails have requested Axis Bank to recover the loan amount from the Respondent Developer but Axis Bank, though accepts the same, but have been initiating recovery proceedings against the Complainant. As such, the Complainant were constrained to issue Email dated 13/08/2020 to Axis Bank asking the institution to proceed legally against the Respondent Developer for the loan outstanding in Loan account No. 00196660004862.

i) That the Complainant had approached the Hon'ble High Court of Karnataka, and the Hon'ble Court vide Order dated 27/10/2021 in WP No. 19046/2021 had restrained Axis Bank from initiating/continuing any sort of precipitative action including but not limited to any civil or criminal proceedings in order to recover the purported loan outstanding against the Complainant herein with respect to the loan account No. PHR000901465829.

7. On the above averments, the following points would arise for our consideration:-

1. Whether the Complainant is entitled for the relief claimed

2. What Order

8. Findings to the above points are as under:-

1. In the Affirmative

2. As per final order

FINDINGS

9. Our findings on point No. 1: The grievance of the Complainant is that their apartment was not completed within the promised possession date, i.e., 30/04/2018 and since they were given the option to withdraw from the purchase from the Respondent Developer by signing a Pre-EMI Scheme document at the very conception of the purchase, the Complainant availed the said option of withdrawal.

10. Accordingly, the Complainant withdrew from the purchase vide email dated 23/07/2017 withdrawing from the purchase and the same was accepted and acknowledged by the Respondent Developer vide Email dated 02/08/2019.

11. In view of the withdrawal of the Complainant from the purchase of the apartment unit and the acceptance of the Developer of such withdrawal, there is crystal clear indication that both the parties are bound by the terms and conditions of the Buy Back scheme, Sale and construction agreement. In view of the Respondent Developer's admission and acceptance of the complainant's withdrawal, and the same forthcoming from all available records submitted before this Authority, there has been delay is giving possession, and therefore the Complainants are entitled to the relief of refund of the entire amount paid to the Respondent Developer. Accordingly, the point raised above is answered in the positive.

12. As the matter with respect to the recovery of the loan outstanding is pending adjudication in WP No. 19046/2021 on the file of the Hon'ble High Court of Karnataka, this Authority has decided not to interfere with the same and has restricted its scope of adjudication to whether the Complainant is entitled to refund of his contribution of the amount to the Developer.

13. With respect to the aspect of refund of 2x amount to the Complainant, it is notable to mention that the said nature of relief has been provided for in the Pre-EMI scheme Document. However, by virtue of the Apex Court decision in M/s. Newtech Promoters and Developers Pvt. Ltd. Vs. State of U.P. & Ors. Etc. In Civil Appeal No(s). 6745 - 6749 of 2021 reported in 2021 SCC ONLINE SC 1044, this Authority does not have powers to grant any compensation reliefs, and the same has been granted to the Hon'ble Adjudicating Officer, RERA. As such, the Complainant is at liberty to approach the Hon'ble Adjudicating Officer and file appropriate complaint, in accordance with law for such compensatory claims.

14. Therefore it is incumbent upon the Respondent to refund the amount with interest which is determined as under:

15. Accordingly, the point raised above is answered in the Affirmative.

16. Our findings on point No. 2:- In view of the above discussion, this complaint deserves to be allowed. Hence, we proceed to pass the following order.

ORDER

In exercise of the powers conferred under Section 31 of the Real Estate (Regulation and Development) Act, 2016, the complaint bearing No. CMP/190628/0003413 is hereby allowed.

1. Respondent is hereby directed to pay the amount of Rs. 28,29,393/- (Rupees Twenty Eight Lakh Twenty Nine Thousand Three Hundred and Ninety Three Only) towards refund along with interest to the complainant within 60 days from the date of this order, calculated at 9% from 26/06/2015 to 30/04/2017 and at SBI MCLR+2% from 01/05/2017 to 06/03/2023.

2. The interest due from 07/03/2023 up to the date of final payment shall be calculated likewise and paid to the complainant.

3. The complainants are at liberty to enforce the said order in accordance with law if the respondent fails to comply with the above order.

4. The developer is directed to pay Rs. 5,000/- as cost towards this petition.