In a landmark ruling with far-reaching implications for joint development residential projects, the Karnataka Real Estate Regulatory Authority (K-RERA) has held that both builders and landowners are equally responsible for providing essential civic amenities such as water and sewerage connections to homebuyers.
Background of the Case
The case arose from a complaint filed by 30 residents, including L. Arun, against Adi Developers regarding the Adi North Lake project in Agrahara village, Bengaluru North taluk. The project was executed under a joint development agreement (JDA) between Adi Developers and landowner B A Rajagopal. Residents alleged that despite collecting charges from homebuyers, the developer failed to secure final water and sewerage connections from the Bangalore Water Supply and Sewerage Board (BWSSB).
BWSSB had issued multiple notices warning about the suspension of the sewage treatment plant (STP) connection and directed the parties to apply for Cauvery water and sewerage links. In June 2021, BWSSB raised a demand notice for ₹91.36 lakh, but only ₹30 lakh was paid. The landowner allegedly failed to pay his share of ₹38.37 lakh, leading to missed deadlines and incomplete works, causing prolonged inconvenience to residents.
K-RERA’s Key Directions
The K-RERA bench, comprising Chairman Rakesh Singh and Member J R Reddy, issued the order on July 30, directing that:
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In joint development projects, both developers and landowners share equal responsibility for providing basic infrastructure.
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The developer, landowner, and residents’ welfare association must work together to obtain final BWSSB water and sewerage connections.
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All original project documents — including title deeds, JDAs, approved plans, possession certificates, and statutory approvals — must be handed over by both parties to the residents’ welfare association.
Legal Provisions Invoked
K-RERA invoked Section 11(4)(j) of the Real Estate (Regulation and Development) Act, 2016, which empowers the authority to ensure that all project documents and legal records are transferred to the residents’ welfare association for effective project management. The bench observed that the non-transfer of these documents was hampering compliance with previous orders and delaying the provision of essential amenities.
Impact on Future Projects
This ruling is expected to influence similar disputes in Bengaluru and across Karnataka, strengthening the accountability of both builders and landowners in joint development projects. By clarifying that civic amenity obligations cannot rest solely with the developer, K-RERA has reinforced the rights of homebuyers to demand complete and functional infrastructure before or soon after possession.
Conclusion
The K-RERA decision serves as a precedent for ensuring that homebuyers are not left in limbo when basic services are missing. For ongoing and future JDAs, this ruling underscores the importance of shared responsibility, timely completion of civic works, and full cooperation between all stakeholders.
