BENGALURU: In a recent move that could send a stern message to builders who tend to ignore orders issued by the Real Estate Regulatory Authority - Karnataka (RERA-K), 11 apartment units belonging to the builder of a Rs 130-crore residential apartment complex in RMV 2nd Stage have been attached by the Deputy Commissioner of Bengaluru Urban.
The process of auctioning them to pay the interest money owed to home buyers of the project is on.
In another significant development related to the project, the real estate developer, KRSNA Projects, has finally registered the sale deeds (crucial ownership documents) of nine apartment buyers in this posh 'Krsna Laburnum' in Dollars Colony within the last fortnight following RERA’s insistence. Dr K Balaraman, the promoter, had refused to do so earlier despite RERA issuing similar orders.
The 50 apartment units, proposed in 2014, were to be handed over to the buyers on different dates in 2016 and 2017 but it never happened, said advocate Prashanth Mirle, representing the buyers. The 3BHK unit costs Rs 2 crore while the 4BHK one cost Rs 2.5 crore. “Home buyers have paid 92% of the total cost for their apartments to the builder,” he explained.
When buyers realised the project was getting delayed, 12 of them filed a complaint with RERA-K and sought compensation for the delay. The compensation was awarded to them on October 3, 2019, but the promoter failed to adhere to the Authority’s order to pay it.
“The total interest to be paid to all buyers calculated from the time of purchase of their properties works out to nearly Rs 14 crore. Hence, the DC attached 11 unsold units so that the money could be recovered by auctioning them,” the lawyer explained.
RERA officials confirmed the developments to The New Indian Express.
The builder has obtained Occupancy Certificates for 47 apartments. “However, the pro rata charges paid by buyers for BWSSB and BESCOM connections have not been handed over to the civic utility departments. Hence, only temporary power connection is available for all with no Cauvery water supply,” said Mirle.