India, April 27 -- The Karnataka Real Estate Regulatory Authority has directed a Bengaluru-based developer and its partner to pay Rs.12 lakh annually to a homebuyer towards 'loss of rent' after failing to hand over possession of a flat despite executing the sale deed. It also ordered Rs.2 lakh as compensation for 'mental agony.'

'This court cannot ignore the prevailing rental/commercial realities in a metropolitan city such as Bengaluru. Apart from the financial loss, the complainant has also suffered inconvenience, uncertainty and hardship due to the failure of the respondents to give the rent of the said flat to the complainant," KRERA said in its order.

In this case, the developer, Surya Homes, and its partner, Bagpack Suites Bangalo...