Bengaluru, 16.12.2025 : The Karnataka Real Estate Regulatory Authority (K-RERA) has directed Casagrande Garden City Builders Private Limited to refund ₹52.74 lakh to a Bengaluru homebuyer after holding that the developer indulged in unfair trade practices by repeatedly altering the cost breakup of a flat and inflating the Goods and Services Tax (GST) component.
The order was passed by Authority Member G.R. Reddy, who found that the promoter failed to provide a transparent and consistent statement of costs and that its conduct was clearly established on record.
The dispute relates to the booking of a residential apartment in the project “Viva City” at Electronic City, Bengaluru. The homebuyer entered into an agreement for sale on May 27, 2024, and paid booking and advance amounts totalling about ₹33.50 lakh.
At the time of booking, the builder represented the total cost of the flat as ₹79.98 lakh, showing GST at ₹8.57 lakh. The allottee later discovered that the actual GST payable was only ₹3.81 lakh. By then, the buyer had already paid ₹32.99 lakh towards the sale consideration, incurred ₹41,650 as franking charges, and deposited ₹30,476 as TDS, which the builder had agreed to adjust against future demands.
Before Karnataka Real Estate Regulatory Authority, the homebuyer argued that despite repeated requests, the developer refused to issue a final and official cost breakup in writing. It was alleged that amounts under different heads, particularly GST, were changed multiple times, creating confusion and artificially inflating the apartment’s price. The complainant maintained that this shifting of figures left the buyer uncertain about the actual financial liability. Notably, the developer did not file any written objections to rebut these allegations.
After examining the material on record, including electronic evidence and recorded communications, the authority concluded that the promoter had failed to provide a consistent and transparent cost statement. In its findings, K-RERA observed that the respondent was refusing to give the cost breakup in writing for compliance and tax purposes and kept changing amounts under different heads, including GST. The authority held that the evidence on record clearly proved indulgence in unfair trade practices.
The authority further held that such conduct violated the obligations of a promoter under the Real Estate (Regulation and Development) Act, 2016. Referring to precedents under Section 18 of the Act, K-RERA reiterated that an allottee has an unqualified right to seek a refund with interest when a promoter breaches statutory or contractual obligations. Since the builder’s actions remained unchallenged and unsupported by any explanation, the authority ruled that the homebuyer was entitled to a full refund.
Accordingly, K-RERA directed the developer to refund the booking amount, franking charges, and TDS, along with interest calculated at SBI MCLR plus two percent, aggregating to ₹52.74 lakh, within the stipulated time. The ruling underscores the obligation of developers to maintain transparency in pricing and tax disclosures and makes clear that arbitrary changes in cost components, especially statutory levies like GST, will attract strict consequences under the RERA framework.
Cause Title: Ramkumar & Anr v. Casagrande Garden City Builders Private Limited
Case No.: Complaint No. 00729/2024
Coram: Authority Member G.R. Reddy
