In a major relief to distressed homebuyers, the Karnataka Real Estate Regulatory Authority (KRERA) has permitted the Abhinandan Residency Welfare Association to assume control and complete the long-delayed Abhinandan Residency project in Belagavi. The real estate project, which remains only 40% complete, has been stalled for more than a year following the death of the developer in March 2022.
Background of the Project
Abhinandan Residency was being constructed by North Karnataka Metro City Developers and Builders, led by its proprietor, Raju Doddabommannavar. After his sudden demise on March 15, 2022, the developer’s office was shut down, and no authorised representative or legal successor came forward to manage or continue the project. This left hundreds of homebuyers paying EMIs without possession or clarity about the future of the project.
The project’s RERA registration expired in 2022 without renewal or extension requests from the stakeholders. The Authority also noted that the interim order to freeze the project’s escrow account remains in place to safeguard finances from any misuse.
KRERA Order and Legal Grounds
After reviewing detailed submissions and physical progress of the site, KRERA concluded that the case falls within the provisions under Section 8 of the Real Estate (Regulation and Development) Act, 2016. Section 8 empowers the Authority to intervene when a promoter becomes non-functional and the project remains incomplete.
The Authority stated that conditions justified administrative intervention to protect homebuyers’ interests and enable project completion. The order emphasised that although associations cannot demand takeover as a matter of right, this particular case fulfills all criteria necessary for an administrative transfer.
Authority’s Directions
KRERA has authorised the Abhinandan Residency Welfare Association to complete the remaining construction work under the supervision of the Authority and obtain all necessary statutory approvals. The association has also been granted access to the existing escrow account.
Additionally, they may raise funds through the sale of unsold flats and shops owned by the original developer. Legal heirs of the deceased promoter have been directed to appear before the Authority and submit all documents and records within 30 days.
Completion Timeline and Monitoring
The Association has been given 24 months to finish the project and must submit progress reports every three months. KRERA’s decision is expected to restore confidence among affected homebuyers and set a precedent for similar stalled real estate projects across Karnataka and India.
This step is seen as a progressive move to prevent abandoned real estate developments from turning into financial tragedies for families who have invested their life savings.
Conclusion
The KRERA order marks a critical intervention to safeguard consumer rights and ensure delivery of long-awaited homes. By empowering homebuyers collectively, the Authority reinforces the core objectives of RERA — accountability, transparency and timely completion.
