Rs 1,000-crore RERA relief yet to reach homebuyers in Bengaluru

Bengaluru: Recently, the Karnataka Real Estate Regulatory Authority (RERA) imposed a fine of close to Rs 56 lakh on Bangalore Development Authority (BDA) for failing to provide basic amenities at the Nadaprabhu Kempegowda Layout. While this brought some relief to homebuyers, making developers and promoters pay up is crucial. 

According to data, till February, close to 2,325 homebuyers have got such relief with RERA ordering developers to pay homebuyers for inconveniences like delay in completing projects and not providing basic amenities. However, of these, only 282 promoters or developers, a mere 8.2 per cent, have paid up. In these 2,325 cases, a fine of close to Rs 1,081 crore was ordered but only close to Rs 110 crore has been recovered and given to homebuyers. 

RERA officials told DH that the revenue department was entrusted with the responsibility of recovery and the RERA did not have such powers. This, the activists said had made it difficult for the homebuyers. A transition from ‘favourable order’ to ‘money in the bank’ or ‘keys in hand’ is crucial, they said.

“The disposal of complaint is high but execution is slow. In Karnataka, the main bottleneck is the deputy commissioner’s office. Once the Recovery Certificate is issued by K-RERA, we need to follow up physically with the tahsildar or the DC office in Bengaluru (or relevant district) to ensure they initiate the attachment of the builder’s property. The DC has the power to recover the amount as “Arrears of Land Revenue,” which includes seizing and auction the builder’s property or freezing their bank accounts,” said M S Shankar from the Forum for People’s Collective Efforts.

The workload in the revenue department had only meant that these issues were put on the back burner, sources said.

However, in many cases, by the time a case is disposed of, some developers would have already moved funds or assets into subsidiary companies.

This makes it difficult for the revenue authorities to seize anything of value.

According to sources, RERA has sought a dedicated recovery cell under the revenue department to address these pending recoveries.

The recovery cell is expected to work dedicatedly in recovering dues for the RERA orders passed.

“We have held discussions with the Chief Secretary as well and recieved a positive response. We will take measures to set up a cell and work towards recovering these dues,” a senior official from the Housing Department said.