In a significant development, Karnataka RERA Orders homebuyers to take over and complete a luxury villa project in Bengaluru that has been delayed for over a decade. The Karnataka Real Estate Regulatory Authority (KRERA) invoked section 8 of the RERA Act, empowering resident welfare associations to intervene and complete projects in cases of prolonged delays and developer negligence.
The project in question, located in Anekal, comprises 73 villas and six economically weaker section units. Despite being 85 percent complete, the developer, LGCL Urban Homes LLP, failed to deliver possession even after ten years of commencement. Frustrated by the persistent delays, the Residents Welfare Association (RWA) registered as a cooperative society approached KRERA seeking intervention.
Karnataka RERA Orders, dated February 22, recognized the legal standing of the RWA under the Karnataka Cooperative Societies Act, 1959, and mandated the association to take over the project for completion. The authority highlighted the developer’s failure to submit mandatory quarterly reports and its involvement in complaints related to other projects in Bengaluru.
In terms of funding, homebuyers have already paid Rs 14.3 crore to the landowner for power and infrastructure. KRERA directed the remaining project costs, estimated at Rs 26 crore, to be sourced from the sale of unsold inventories or through additional contributions from homebuyers, to be recovered in the future.
The order also instructed the developer to hand over all approved documents and no objection certificates to the RWA. The association was given a timeline of 18 months from the order date to complete the project, ensuring that homebuyers finally receive possession of their long-awaited properties.
This decision by KRERA sets a precedent for addressing the staggering number of delayed projects in Bengaluru, which currently stands at over 26,030, valued at Rs 28,072 crore. It emphasizes the authority’s commitment to protecting the interests of homebuyers and holding developers accountable for project delays and non-compliance with regulatory norms.
