Karnataka RERA Issues ₹707 Crore Recovery Orders Amid Project Delays
BENGALURU: The Karnataka Real Estate Regulatory Authority (K-Rera) has issued recovery orders totaling more than ₹707 crore in 1,539 cases involving 257 projects in the state. The recovery orders were issued due to project delays and the failure of builders to pay compensation or make refunds within the stipulated time. However, affected homebuyers have yet to receive any money.
Project Delays Leave Homebuyers in a Difficult Situation
Sudhakar Lakshmanaraja, 37, is one of the many homebuyers who have been caught in the situation of having to pay rent and interest on loans for a flat that remains incomplete. Lakshmanaraja purchased his flat in 2018 with the promise of getting possession by 2019. However, nearly half of the project in Thanisandra remains incomplete. As a result of the delay, K-Rera issued a recovery order against the builder/promoter in 2022. Unfortunately, after two years, affected homebuyers are still waiting for their compensation or refunds to be paid.
The Ineffectiveness of Rera’s Recovery Process
Homebuyers like Sudhakar Lakshmanaraja are frustrated with the ineffectiveness of K-Rera’s recovery process. Despite having the power to issue recovery orders, K-Rera does not have the authority to recover the money owed. That lies with the district administration. Only 11% of the ₹707 crore has been recovered in 185 cases, leaving builders still owing homebuyers more than ₹627 crore in 1,354 cases.
Experts Propose Solutions
Real estate investigator and secretary of the Bangalore City Flat Owners’ Association, Advocate Anil Kalgi, highlighted the issues with the current process. He pointed out that K-Rera first orders the builder to pay compensation, and if that goes unpaid, the recovery order is issued. However, the enforcement of this order lies with the district commissioner (DC). Kalgi questioned how the DC would be able to recover the funds, especially if the projects themselves are incomplete or have not even started.
To address these challenges, Dhananjaya Padmanabhachar, sanchalak of the Karnataka Home Buyers’ Forum, suggested the appointment of a special revenue recovery officer under K-Rera. This officer would be responsible for executing the recovery orders and ensuring that homebuyers receive their due justice in a timely manner.
The Need for Stronger Implementation of Rera Laws
Vikram Rai, president of the Bangalore Apartments Federation, expressed his concerns about the varying implementation of Rera laws in different states. He emphasized that Rera is meant to ensure that builders deliver properties as promised, both in terms of quality and timeliness. However, strict implementation is lacking in Karnataka and other states.
Overall, the delays and inefficiencies in the recovery process have put homebuyers like Sudhakar Lakshmanaraja in a challenging situation. With the issuance of recovery orders by K-Rera, there is hope for compensation. However, until the authorities take stronger actions to enforce these orders and ensure the timely recovery of funds, the plight of homebuyers in Karnataka will continue.
