RERA verdict fines builder, puts smile on buyers’ faces

BENGALURU: A recent order by the court of the Real Estate Regulatory Authority-Karnataka (RERA-K) ordering a builder to register its property under RERA within 60 days and the penal charges imposed on it has brought relief for many homebuyers. The order by the Court against the Platinum City project on HMT Road, near Peenya Metro station, was made public on December 2 though the verdict was delivered on November 6. This marks the first project for which RERA has issued show cause notice for non-registration as well as asked the builder to pay 10% of the project cost as penalty. It offers relief not only to the 1,000-plus buyers of houses in Platinum City but also offers hope for home buyers of different projects.

The case was filed by Pankaj Jaiswal and 7 others against its promoter Ziaulla Sheriff. Jaiswal had bought a 3BHK home at Platinum City in 2010 and is a resident here. A relieved Jaiswal told TNIE, “The builder did not take any steps to help us get our Occupancy Certificate (OC) through the civic agency concerned. In the absence of the OC, we could not get our ‘A’ katha certificate. Our homes could neither be sold or mortgaged to raise resources. Nor did the builder form a registered association and hand over the maintenance corpus to it as mandatory under the Karnataka Apartment Ownership Act,” he explained.  

Water supply from the Bangalore Water Supply and Sewerage Board and power through BESCOM was not provided. “We were supplied tankers and it was billed. We also had to pay commercial rates for the electricity used. It is a relief that RERA has asked the builder to reimburse the expenses we incurred on all these counts,” Jaiswal added. 

The court order also directed the promoter to form an Association and permit it to maintain the building. A sum of Rs 29 crore collected for maintenance has to be transferred to the Association, the order said. Intercom, earmarking of car parking, removal of encroachments on terrace areas of the building, free membership to amenities like Club House, swimming pool and gym were among other directions issued by the court comprising RERA Chairman M R Kamble and members Adoni Syed Saleem and D Vishnuvardhana Reddy.

Another present resident requesting anonymity said, “This is a landmark, comprehensive judgement, setting a precedent for similar cases in Karnataka. Such a clear verdict is seldom given.” M S Shankar, General Secretary, Forum for People’s Collective Efforts, said, “We welcome this landmark judgment. This order should deter similar illegal behaviour by the erring builders. The three-member K-RERA bench has proved to have teeth to bite by issuing show cause notice to levy penal charges of 10% under sections 59 (1) of the RERA Act.”

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