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KRERA orders developer to pay Rs 28 lakh as flood compensation

The Karnataka Real Estate Regulatory Authority (KRERA) has held that flooding in an apartment complex cannot be considered an “act of God” and ordered the builder to pay Rs 1 lakh in damages to homebuyers at a Bengaluru project as compensation.

“The materials on record prove as evidence that the developer has opened a temporary gate in the backside of the apartment complex of Sterling Ascentia next to under-construction Tower 3 and 4, thereby flooding basements of Towers 5 and 6 (out of a total of six towers),” the KRERA order dated March 17 said.

The residents of Towers 5 and 6 suffered mental agony because the promoter Sterling Developers failed to take quick action, the authority’s order added.

Additionally, it held that several amenities like the clubhouse have not been completed as per the sanctioned plan and asked the developer to pay Rs 1,000 and Rs 500 to homebuyers a month until the clubhouse and other promised amenities like basketball and tennis court are completed, respectively.

“Though the water was drained out, the problems caused to the homebuyers cannot be ruled out. Additionally, the developer has not provided the promised clubhouse or other amenities,” the order mentioned.

KRERA ordered the developer to pay Rs 1 lakh to each of the 28 homebuyers and the monthly compensation until the clubhouse and other promised amenities are completed.

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