Karnataka RERA Orders Owners' Association to Complete Delayed Project
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In an unprecedented move, the Karnataka Real Estate Regulatory Authority (KRERA) has directed an association of flat buyers to take over and complete a delayed real estate project. This decision comes after the developer, Commune Properties Pvt Ltd., failed to deliver the promised apartments on time.

The Case

The Commune One project, located in Anekal taluk in Bangalore, was originally scheduled for completion by December 2019. The project included 384 flats across five towers, but only about 200 units were handed over, and those lacked essential amenities and occupancy certificates. Furthermore, the developer had mortgaged the entire project to Anand Rathi Global Finance Ltd. in 2017 without the consent of the homebuyers, raising concerns among the buyers.

Violations and Financial Mismanagement

KRERA noted that both the developer and the financier violated orders that prohibited the sale of additional apartments and the mortgaged units. Despite collecting over 90% of the funds from homebuyers, the developer diverted the money, leaving the project incomplete. Anand Rathi exacerbated the situation by selling 18 of the mortgaged flats, including some already sold to homebuyers, for Rs 4.3 crore.

Karnataka RERA order

In response to these violations, KRERA has ordered Anand Rathi to transfer the Rs 4.3 crore collected from these sales to the buyers’ association. This fund is intended to aid the completion of the project. The authority cited Section 8 of the RERA Act, empowering the buyers’ association to complete the project within two years. Additionally, KRERA has allowed the association to sell unallotted apartments to raise further funds for the project’s completion.


This landmark Karnataka RERA order aims to protect homebuyers’ interests and ensure the completion of stalled real estate projects. By empowering the buyers’ association and enforcing strict measures on the developer and financier, KRERA sets a significant precedent in the real estate sector.

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