In 2024, several Karnataka RERA orders, such as permitting homebuyers to take over common areas of a project to allow them to complete one that had been delayed for almost a decade, impacted the city’s real estate landscape and homebuyers in general.
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Here are top Karnataka RERA orders in 2024:
1) Karnataka RERA directed a developer to hand over possession of common areas to the homebuyers’ association in south Bengaluru.
In this case, the project, Mahendra Aarna, located in Anekal, was completed by developer Mahendra Homes Pvt Ltd after obtaining the occupancy certificate. However, in its May 16 order, KRERA noted that the developer should give possession of the common facilities to the association of allottees as per RERA.
The authority pointed out that, under section 17 of the RERA Act, the developer is required to transfer actual possession of the common facilities and other titles to the association of the allottees within three months of receiving the OC.
“The Act clearly states that the respondent must maintain the common areas until it is handed over to the association. Thus, the developer is ordered to hand over the possession of common areas within two months of the order date,” KRERA said.
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2) In another matter, Karnataka’s real estate regulator had ordered homebuyers to take over and finish constructing a delayed luxury villa project in Bengaluru.
In February, the Karnataka Real Estate Regulatory Authority (KRERA) pointed out that the developer, LGCL Urban Homes LLP, has not turned over possession of the project even after 10 years. It permitted resident welfare societies to take over the project under Section 8.
The project is located in Anekal and has 73 villas and six units for the economically weaker section.
In a related matter, it directed an association of homeowners in May 2024 to take over a delayed project and complete it after the developer did not deliver the apartments on time. The developer Commune Properties Pvt Ltd and financier Anand Rathi Global Finance Ltd had violated the RERA order that had debarred the builder from selling additional housing units and prevented the financier from selling mortgaged apartments to recover the dues.
KRERA directed Anand Rathi to hand over โน4.3 crore collected from the sale of the apartments mortgaged to the association and asked the association to utilise the amount to complete the project.
3) In January 2024, the Karnataka Real Estate Regulatory Authority (KRERA) directed L&T Realty to transfer the entire amount collected from homebuyers as pre-maintenance and the common areas for the L&T Realty Raintree Boulevard project in Bengaluru to the residents welfare association (RWA).
The 25-acre complex has 2,242 flats, some of which are premium homes that cost โน4 crore.
4) In another April 2024 order, KRERA ordered Suvilas Properties, a wholly-owned subsidiary of Bengaluru-based listed real estate player Shriram Properties, to reimburse the full booking price. In this instance, the developer had said that the highrise would have 27 storeys while selling the apartment to the buyer for โน1.2 crore. However, the tower only had 20 floors.
In its order, KRERA directed the developer to return the booking amount of โน50,000 with interest to the buyer.
The Karnataka Real Estate Regulatory Authority has ordered the recovery of more than โน707 crore in 1,539 cases involving 257 delayed real estate projects in the state, of which 88% are yet to be recovered.
The data showed that as of August 31, compensation of โน79.94 crore had been recovered in 185 cases. Alternatively, over โน627.32 crore remains to be recovered in 1,354 cases.
