In a major blow to real estate player GM Infinite, the Karnataka Real Estate Regulatory Authority (K-RERA) has ordered it to pay penalty until buyers get possession of their houses. The order has been issued on the basis of complaints filed by the homebuyers of GM Infinite E-City Town Phase-2 in Bengaluru for not meeting the project deadline.
The K-RERA also ordered the developers to pay a penalty for not registering the project under the Real Estate Regulation and Development Act, 2017.
The buyers claim that the developers were showing occupancy certificate (OC) issued by civic authorities Bruhat Bengaluru Mahanagara Palike (BBMP) and Bengaluru Development Authority (BDA), and delivering unfinished flats.
"We have sold 900 units in the first phase and 1,399 units in the second phase of the project. Our customers are satisfied with our service," said Gulam Mustafa, the MD of GM Infinite, the TOI reported.
"Only 10 buyers complained as they had vested interests. Three of them have withdrawn their complaints. As far as K-RERA's intervention is concerned, we had clarified to the authority that if the complainants want, we are ready to pay compensation. Still, K-RERA issued this order. It's unfortunate," he added.
Mustafa also claimed that the project was not registered under the RERA Act because it was completed before the act came into force on July 10, 2017. At that time, GM Infinite had reportedly applied for the OC and the completion certificate.
According to the complainants, they had booked the flats between 2014 and 2015. The developers had promised to hand over the flats by July 2017 but failed to do so.
Though the project was incomplete, the BDA allegedly issued OC to GM Infinite in June 2018. The complainants claim that they have proof of the flats being in an uninhabitable condition when the developers asked them to complete the formalities.
The complainants also claim that the civic authorities are also involved in the case. They questioned how the BDA can issue OC if the project is not complete. BDA commissioner N Manjula said that she will look into the matter and take strict action against the offenders.