Living in Bengaluru, Buying Elsewhere: Why a Tribunal Refused Rs 37 Lakh in Rent for a Delayed Flat

A Whitefield resident booked a unit in a Jaipur housing scheme in January 2012. Possession was promised by the end of 2014, then by the end of 2017. It finally came on 22 March 2022. By then he had paid Rs 54,94,197, partly through a home loan. He had already won Rs 11,16,422 in delay interest. Then he went back for more: Rs 37,13,061 for the rent he had paid on his home in Bengaluru, plus compensation for missing amenities and mental agony.

The Rajasthan Real Estate Appellate Tribunal said no to the rent. In Appeal No. 103/2026, it held that rent paid in Bengaluru, where he chose to live, "is not a loss caused by the delay in this project", that rent after possession could not be blamed on the delay, and that paying rent on top of delay interest "would be paying twice for the same loss". It upheld only a modest award based on what his home loan actually cost him over and above the delay interest. For Bengaluru residents who buy homes in other cities, the ruling is a careful guide to what can and cannot be claimed.

The short answer. The Rajasthan REAT upheld an Adjudicating Officer's award of Rs 1,50,000 for extra loan cost, Rs 30,000 for mental agony and Rs 20,000 in costs, and rejected claims of Rs 37,13,061 for rent and compensation for amenities. Compensation, it said, "must be based on proof and not on guesswork". The trade-off for buyers: a separate compensation claim is available even after winning delay interest, but only for a loss you can prove that the interest did not already cover.

What happened in the Jaipur housing scheme case?

According to the Rajasthan REAT judgment in Appeal No. 103/2026, the Air Force Naval Housing Board launched a Jaipur scheme for serving and retired Air Force and Naval personnel through a welfare society on a "no profit no loss" basis. The buyer, whose address is in Whitefield, Bangalore, paid Rs 1,01,000 on 12 January 2012 against a total of Rs 36,50,000, and got an allotment letter dated 9 February 2012 with possession by the end of 2014.

The scheme was relaunched at a revised cost, and a revised allotment letter of 27 November 2014 put possession at the end of 2017. He took an HDFC Bank loan and paid in instalments, a total of Rs 54,94,197. A possession letter came on 9 July 2021, before the completion certificate of 28 October 2021 and the occupancy certificate of 20 June 2022. He took possession on 22 March 2022.

In earlier proceedings, the Rajasthan RERA Authority on 23 November 2023 awarded interest at 10.75% per annum, and the tribunal in Appeal No. 159/2024, on 25 October 2024, extended it to run from 1 January 2018 until possession. The buyer then filed a separate compensation complaint. The Adjudicating Officer, on 16 October 2025, awarded Rs 1.5 lakh for financial loss, Rs 30,000 for agony and Rs 20,000 for costs. The buyer appealed for much more.

Can you claim compensation after already getting delay interest?

Yes. The tribunal relied on the Supreme Court's Newtech Promoters judgment: refund and interest are decided by the Authority, while compensation under Sections 12, 14, 18 and 19 is decided by the Adjudicating Officer under Section 71, having regard to Section 72. "So, a compensation complaint is a separate remedy and is not barred by the earlier orders," it said. But the interest already granted matters, "to make sure that the same default is not compensated twice".

It also held the welfare housing board to be a promoter, noting that Section 2(zk) "makes no difference between commercial builders and welfare societies", and that a clause taking away all interest and compensation for delay "cannot override the allottee's right under Section 18". Our explainer on Section 71 and 72 compensation before the Adjudicating Officer sets out the factors the tribunal applied.

Why was the Bengaluru rent claim rejected?

The tribunal gave three reasons. First, the buyer lives in Bangalore and the rent receipts were for Bangalore premises. He had "not pleaded or shown that he would have moved into the Jaipur flat but for the delay, or what rent he would have saved in Jaipur". Rent paid "for a house in another city for his own convenience is not a loss caused by the delay in this project".

Second, the claim ran from January 2018 to May 2024, but he took possession on 22 March 2022. "Rent after possession cannot be blamed on the delay," and his plea that the unit was unfit to live in was "a bare statement" without any specific defect. Third, he had already received interest at 10.75% on all his deposits for the delay period. "Interest is the accepted measure of compensation for loss of use of money and of the unit during the delay," the tribunal said, and rent for the same period would be double payment.

What loss did the tribunal accept?

It accepted the Adjudicating Officer's method of measuring "the extra burden the appellant actually bore": the gap between the cost of his home loan and the delay interest he received. The Adjudicating Officer found about 12% on the loan against 10.75% simple interest and awarded about Rs 1.5 lakh. The tribunal called this "a fair way to measure the loss that delay interest did not cover" and found no error.

Why did the amenities claim fail?

The tribunal said a buyer claiming for missing amenities "must first show what was promised, and then show which of those things were not provided". The buyer had a long list in his pleadings but had not shown, from the brochure, allotment letters or sanctioned plans, which amenities were promised to him, or proved which were missing. "A list of items in the pleadings or in the memorandum of appeal is not proof," it said, and no photographs, inspection report or correspondence filled the gap.

It noted the Supreme Court's DLF Southern Homes judgment that promised amenities must be provided, and Sections 11(4)(a), 14 and 18(3) of the RERA Act, but said these "help a buyer only when the promise and the failure are shown". The Section 12 claim for false statements failed for the same reason, and the argument that delay itself was a "false assurance" was rejected because delay is compensated under Section 18(1).

The buyer also argued that the possession letter of 9 July 2021 came before the occupancy certificate. The tribunal said his reliance on Section 19(10) did not help: that provision requires an allottee to take physical possession within two months of the occupancy certificate, but "does not make an earlier offer of possession illegal, and does not by itself give a right to compensation". He had taken possession in March 2022, shown no loss tied to the timing of the offer, and not raised missing amenities with the builder or the residents' association, which has run the project since 2022.

What should a Bengaluru resident buying in another city keep on file?

If you live in Bengaluru and buy a home elsewhere, any future claim will turn on evidence. Our report on a K-RERA order on missing amenities and compensation shows the same need for proof closer to home. Keep these records from day one.

1. The brochure, allotment letters and agreement, with every amenity promised marked clearly.
2. A written note of your intended use of the home, such as moving in on possession, if that is your plan.
3. Home loan statements showing the interest rate and EMIs paid during any delay.
4. Rent receipts only for the period up to possession, if you claim rent as a loss.
5. Photographs, inspection reports or letters showing any defect that stops you from living in the flat.
6. Written complaints to the builder or residents' association about missing amenities, with dates.
7. Receipts for legal and filing costs, and any medical records if you claim for agony.

The order, passed in Rajasthan on a Jaipur project, is persuasive guidance for Karnataka rather than a ruling there, but it applies central law and Supreme Court judgments. Its message to Bengaluru buyers is consistent: claim what you can prove, and expect delay interest to be treated as the main compensation for the delay itself.

Frequently asked questions

Can I claim my Bengaluru rent if my flat in another city is delayed?

Not without proof that the rent was caused by the delay. In Appeal No. 103/2026, the Rajasthan REAT rejected Rs 37,13,061 in Bengaluru rent because the buyer had not shown he would have moved to Jaipur but for the delay, and because rent overlapped with the delay interest he had received.

Can I get compensation after RERA has already awarded delay interest?

Yes. Relying on the Supreme Court's Newtech judgment, the tribunal said a compensation complaint before the Adjudicating Officer is a separate remedy not barred by earlier interest orders. But the same default cannot be compensated twice, so the claim must be for a loss the interest did not already cover.

How was the extra home loan cost measured?

The Adjudicating Officer compared the buyer's loan cost of about 12% with the 10.75% simple interest he received for the delay, and awarded about Rs 1.5 lakh for the gap. The tribunal called this a fair way to measure the loss that delay interest did not cover.

What proof do I need to claim for missing amenities?

The tribunal said you must first show what was promised, from the brochure, allotment letters or sanctioned plans, and then prove which promised items were not provided. A list in your pleadings is not proof. Photographs, inspection reports or written complaints can help fill that gap.

Last updated 2026-11-15. PropNewz Team.