Karnataka RERA Issues 400 Recovery Orders

The Karnataka Real Estate Regulatory Authority (K-RERA) has issued nearly 400 recovery warrants against builders for not honouring its orders, over one and a half years.

While the issuance of recovery certificate has helped many homebuyers to strike an out-of-court settlement deal, the rate of recovery – a responsibility of Deputy Commissioners – has been poor in almost all cases, said a press release. The delay has only added to the miseries of buyers who have invested their hard-earned money to buy what they believed would be their dream house, added the release.

A part of recovery list, uploaded on the K-RERA website, shows homebuyers have invested anywhere between Rs 42 lakh and Rs. 1.88 crore towards purchasing an apartment in the city. Names of many prominent builders too are on the list. Officials are likely to upload the names of all the builders who have not honoured RERA’s judgements in the coming week.

Some of the real estate projects include: RJ Lake Gardenia, Mantri Web City, Nitesh Cape Cod Phase 1, Aryan Golden Arena and GM Ambitious Enclave, added the release.

It further said that so far, K-RERA has received over 4,400 complaints from homebuyers and the regulatory authority has passed nearly 2,300 judgments against builders.

KS Latha Kumari, Secretary at K-RERA said many builders are coming forward to compensate the homebuyers soon after recovery warrants are issued. “They are aware that such warrants damage the image of their company. They opt for out of court settlements. On our part, we have also conducted a joint-meeting with Deputy Commissioner and tahshildars to improve recovery rates. We have also offered manpower and logistical support to the district administration,” she said.