BENGALURU: Builders in the state have paid just 12.5% of the total penalty amount they owe to homebuyers -- just Rs 79.94 crore out of Rs 627.32 crore levied by the Karnataka Real Estate Regulatory Authority (K-RERA). Data made public on Sunday (September 29) by the authority reveals that of the 1,354 recovery warrants it issued, just 185 have been successful.
These recovery figures are realised up to August 31. RERA has uploaded it on its website following a representation submitted to it on August 9 by the Forum for People’s Collective Efforts (FPCE), an umbrella body of homebuyers.
Responding to the data, M S Shankar, general secretary, FPCE, called for a joint meeting of homebuyers with revenue, housing and RERA officials to chart out the way forward to recover the penalties. “The Real Estate Act (RERA) was enacted by Parliament in 2016 to protect the life savings of homebuyers. Execution of the orders for recovery of the compensation is most crucial. However, despite clear provisions in the law and favourable orders from the regulatory authorities directing the builders to return their money and/or handover possession, the orders are not honoured by builders. This is leading to homebuyers running from pillar to post to get the orders implemented,” he told TNIE. “It is a sheer case of lack of regulatory enforcement,” he added.
He alleged that there was no seriousness by the state government for the enforcement of the RERA Act, which stipulates that the orders need to be honoured by developers within 60 days.
A source familiar with the issues told TNIE, “The deputy commissioners or tahsildars, who are supposed to implement the orders, are already overburdened. The issue of non-payment of dues is only going to pile up as more orders are issued.
RERA-K needs to take proactive steps to deal with the issue from its end. Most builders in the state are working on multiple projects and visit the regulator’s office repeatedly to obtain consent. RERA needs to crosscheck if they have paid the past dues before giving them any new sanction.” The other option is for the BBMP or the BDA or the BMRDA, which the builders approach to get their building plan sanctioned, to make it mandatory for builders to submit a declaration that they have upheld the orders of RERA.
Dhananjaya Padmanabhachar, convenor of Karnataka Home Buyers Forum, said, “There needs to be a revenue officer within RERA who owns the responsibility of recovery from promoters and pays it to homebuyers. This officer should have powers to attach the properties of the promoters or even issue an arrest warrant when the orders are not honoured.”