KOCHI: Anil Mathews, a public relations professional, sold his apartment in Mumbai to book an apartment in his hometown in Kochi in 2017 by paying Rs 30 lakh and another Rs 15 lakh later. Even after more than five years, the apartment project -- Nucleus Raymont -- has not been completed and home buyers like Mathews in the project have first approached Kerala-Real Estate Regulatory Authority (K-RERA), before moving the National Company Law Tribunal.
“If you calculate the interest amount too, my Rs 60 lakh has been blocked for the last five-six years, and we have no clue when the issue will be finally resolved through the insolvency code. Anyway, my dreams of resettling to Kochi have been dashed for now,” lamented Mathews. He said the others and he in the project approached NCLT as the insolvency code overrides K-RERA.
Nishad N P, managing director of Nucleus Premium Properties Pvt Ltd, which is facing insolvency, blamed the 2018 flood and Covid-induced crisis for the company’s failure to complete the project on time. “We have been fully cooperating with K-RERA and all our projects comply with the mandatory K-RERA registration. We are cooperating with the resolution process and also have gone for an appeal. We have taken steps to ensure that we complete all announced projects on time and deliver them to our valued consumers,” he added.
There are also those who have burnt their pockets by investing in commercial spaces in Kerala. Jaison Anithanam of Kaduthuruthy, who had booked a 752-sq-ft built-up space paying 60% upfront (Rs 54 lakh) in Unitech’s Rs 750-crore shopping mall-cum-hotel project in Kochi when it was launched in 2010, has lost all hope. “The company has been taken over by the government under the direction of the Supreme Court.
A new board came up with a resolution plan like selling some of the real estate properties and moving some unfinished projects to others. But the priority is given to residential projects and their owners which number around 24,000. Ours being commercial is given only secondary preference,” said Jaison.
Though the K-RERA came into effect in May 2017 to provide greater accountability by real estate companies and to safeguard the interests of the consumers, lack of awareness and companies not complying with the rules continue to make the sector vulnerable.
In 2021 alone, a total of 327 complaints were received at K-RERA from consumers against several projects of real estate firms in the state. K-RERA chairman P H Kurian said though the establishment of authority in Kerala has brought in some transparency in the functioning of real estate companies in the state, the situation needs drastic improvement as many companies still operate without RERA registration.
“The complaints against companies delivering apartment projects are less compared to those into independent dwelling units and villa projects,” he said, adding that K-RERA has decided to conduct a series of campaigns to sensitise the public and the real estate players about the regulatory role of K-RERA.
“A lot of small-time companies are getting into the real estate business offering independent houses in five- to ten-cent plots. These companies find means to circumvent certain plot approval rules. Finally, it’s the consumers who are affected by it. We want people to reach out to K-RERA whenever they have any doubts on a project,” he added.
K-RERA’s entry
Though the K-RERA came into effect in May 2017 to provide greater accountability by real estate companies and to safeguard the interests of the consumers, lack of awareness and companies not complying with the rules continue to make the sector vulnerable.