The Karnataka Real Estate Regulatory Authority has ordered recovery of more than ₹707 crore in 1,539 cases, involving 257 delayed real estate projects in the state of which 88% amount is yet to be recovered.
As of August 31, compensation to the tune of ₹79.94 crore has been recovered in 185 cases, the data showed. Alternatively, over ₹627.32 crore remains to be recovered in 1,354 cases.
K-RERA Chairman Rakesh Singh told HT.com that he is holding consultations with relevant stakeholders in an attempt to devise an effective strategy within the bounds of the regulatory authority to expedite the recovery process.
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“They (revenue officials) must have made reasonable efforts but it has to be expedited and taken to a logical end… What happens is that they have their own load of work and this is also a part of their job,” he reasoned.
“There can be two options: 1) We keep on trying to expedite the process and there can be a reasonable, remarkable improvement. 2) We can have a new model wherein a separate structure can be created under overlap of RERA and revenue acquisitions,” Singh added.
Singh, who was recently placed at the helm of the regulatory body, said that grievance redressal of allottees would be one of the primary targets during his tenure.
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Legal provisions
According to the Real Estate (Regulation and Development) Act, 2016, if a builder fails to pay compensation or refund money to homebuyers, the regulatory authority can issue a revenue recovery certificate (RRC), directing the state revenue department to recover the money from the builders.
In other words, while the real estate regulatory authority is empowered to issue a revenue recovery order, the power to retrieve the money lies with the district administration.
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“The current ecosystem is not working out. Dealing with two departments is a pain. So if we can have a revenue recovery official within RERA, who has the same powers as the District Commissioner, that would be the best model,” said Dhananjaya Padmanabhachar, Sanchalak, Karnataka Home Buyers Forum.
