Karnataka RERA Empowers Homebuyers to Complete Delayed Bengaluru Project

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In a rare move, Karnataka's Real Estate Regulatory Authority (KRERA) has issued an order directing homebuyers to take control of a delayed luxury villa project from the developer, LGCL Urban Homes LLP. The project, located in Anekal, comprises 73 villas along with 6 economically weaker section units. The order, invoking section 8 of the RERA Act, empowers resident welfare associations to assume responsibility for the project's completion. This intervention comes after 10 years of construction without possession handover, as reported by the residents' welfare association (RWA).

I. Background of the Delayed Project:

The residents' welfare association approached KRERA, highlighting the prolonged delay of the Bengaluru project, which remains incomplete even after eight years since construction commencement. The project's significant delay and non-compliance with possession timelines prompted the regulatory authority's intervention.

II. KRERA's Utilization of Section 8:

The KRERA order relies on section 8 of the RERA Act, which grants resident welfare associations the authority to step in and complete a project if the developer fails to meet obligations. This unique provision aims to protect the interests of homebuyers and ensure project completion in cases of prolonged delays and non-compliance.

III. Scale of Delayed Projects in Bengaluru:

Bengaluru grapples with a staggering 26,030 delayed projects, collectively worth over Rs 28,072 crore, according to KRERA data. The regulatory authority, under Chairman Kishore Chandra's guidance, has previously communicated that homebuyers have the option to approach KRERA to take charge and complete delayed projects themselves.

IV. KRERA's Directive:

The order from KRERA mandates that the residents' welfare association assumes control of the luxury villa project, emphasizing the developer's failure to hand over possession despite a decade-long construction period. This directive aligns with KRERA's commitment to ensuring homebuyers' interests are safeguarded in instances of prolonged delays and non-compliance with possession timelines.

Karnataka RERA's order empowering homebuyers to take over and complete the delayed Bengaluru project signifies a proactive stance in addressing the challenges posed by delayed constructions. By invoking section 8 of the RERA Act, the regulatory authority ensures that resident welfare associations can step in to safeguard the interests of homebuyers and drive project completion. This intervention is crucial in a city with a significant backlog of delayed projects, underlining KRERA's commitment to resolving issues and protecting the rights of property buyers.