BENGALURU: The Karnataka Real Estate Regulatory Authority (K-RERA) has ordered the builder to transfer the title of the common area to the home allottees, immediately after they form an association. The retention of the title of the common area by the builder, which was subsequently misused to mobilise resources by the promoter, has been a major issue faced by home buyers across the state.
The verdict was delivered by a bench presided over by RERA Chairman H C Kishore Chandra, while hearing a case against Signature Crest residential project developed by Signature Dwelling Private Limited on July 21, filed by Sandeep G W and Jonali Das. The project is in Gonighattapura village in Sarjapur hobli.
Responding to the verdict, Dhananjaya Padmanabhachar, convener, of Karnataka Home Buyers’ Forum, told TNIE, “It’s a landmark order in the history of RERA Karnataka, where the promoter is asked to transfer common areas to the association of allottees, which the Karnataka Home Buyers’ Forum has been stressing for very long.” The home buyers need to form a registered association of allottees under the competent authority to take the transfer of common areas to their association. “We can use this verdict as a reference point when future cases are fought by home buyers,” he said.
Ameya Usgaonkar, a home buyer, billed it as “a major, major verdict by RERA”. This will put an end to malpractices indulged in by resident associations, like money laundering and diversion of funds if this is adopted across the state, he said. “Also, the builder who transfers the flats in the name of the home buyers merely hands over the common area without a transfer in the title name. Across Bengaluru, it’s rampant to see the promoter re-mortaging the documents to obtain unsecured loans from banks and other financial institutions,” he added.
Usgaonkar said similar provisions existed under Karnataka Flat Owners’ Association (KOFA) for home buyers in the pre-RERA period, but they were not honoured by the promoters or Registrar of Cooperative Societies. In the specific complaint against the promoter of Signature Crest, the bench also ordered the builder the provide car parking space to the complainant, as per BBMP building by-laws 2003.