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By Staff Reporter
The Karnataka Real Estate Regulatory Authority (K-RERA) has delivered a stern message to builders who fail to provide essential basic facilities and maintain their properties adequately. In a landmark move, it has instructed a builder to hand over the entire maintenance fund of Rs 62.26 lakh, allocated for ‘K-RERA’ apartments, to the Resident Welfare Association (RWA). This action serves as a cautionary tale for other builders operating in the region.

In Bengaluru, numerous apartments are under the management of builders, while many are run by resident associations. In cases where builders handle maintenance, monthly fees are collected from apartment residents. Unfortunately, mismanagement is a recurring issue, resulting in frequent disputes between builders and residents.

The ‘Sharadindu State-3‘ housing project near Ranganakoppalu village, close to Pandavapura in Mandya district, was developed by Shree Senior Homes, primarily for senior citizens. Since 2016, the builder had been collecting management fees and overseeing the project. However, following the establishment of the Apartment Residents Welfare Association (RWA) in 2022, builder-led management ceased. Before this transition, a maintenance fee of Rs 4.50 per square foot was collected, amassing a substantial fund.

Complaints emerged that the builder was not maintaining the property adequately and had failed to provide essential amenities such as an emergency push button, intercom, swimming pool, and hobby room. The Senior Commune Owners’ Association, known as ‘K-Rera,’ raised concerns that the funds in the account were not being transferred to the association.

In response to this complaint, a bench led by the authority’s chairman, Dr. HC Kishorechandra, ordered the builder to complete the housing project within 60 days, as previously agreed. The builder was also directed to provide all promised amenities and to transfer the accumulated funds to the association.

It’s important to note that the entire housing project remains a work in progress. Although the project received approval in 2012, it has yet to reach completion. The developer has not transferred the undivided share of the common area to the RWA, and many required infrastructures are still pending. Consequently, Shree Senior Homes has been urged to expedite the project’s completion.

Additionally, K-RERA has taken measures to support unregistered residents’ associations. In cases where housing projects face delays, stoppages, or cancellations, RWAs now have the authority to approach K-RERA to assume control of the project. However, this authority is granted exclusively to RWAs registered under cooperative societies.

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