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KRERA Mandates Five-Year Responsibility for Structural Defects by Developers

Karnataka RERA Orders Owners' Association to Complete Delayed Project

In a significant ruling, the Karnataka Real Estate Regulatory Authority (KRERA) has mandated that developers must address any structural defects in their projects for up to five years after handing over the possession to the residents’ associations. This decision reinforces the accountability of builders in ensuring the quality and safety of residential properties even after the initial transfer of ownership.

The Ruling and Its Implications

The ruling came after a complaint was filed by Pankaj Singh, a resident of SNR Verity in Sarjapur, Bengaluru. Singh experienced severe water seepage issues in his apartment, which the developer, SNR Square Pvt Ltd, failed to adequately address. Despite previous assurances that the problem had been resolved, the issues persisted, prompting Singh to seek intervention from KRERA.

KRERA’s order, issued on June 13, underscores that developers are obligated to repair structural defects discovered within five years of the handover, even after the formation of a residents’ association. This responsibility extends beyond the initial transfer of common areas to the association, a critical point clarified by the Real Estate (Regulation and Development) Act, 2016 (RERA). According to Chapter III, Part 4(A) of the act, developers must rectify structural defects irrespective of the conveyance deed status.

Ongoing Challenges for Homebuyers

The ruling highlights a recurring issue faced by homebuyers: developers often neglect their maintenance responsibilities post-handover. Dhananjaya Padmanabhachar, director of the Karnataka Home Buyers Forum, emphasized that many developers avoid addressing such defects, sometimes even before the formal conveyance of the apartments to the residents’ associations. This negligence often leaves homeowners grappling with unresolved structural issues, affecting their quality of life and safety.

The Sobha Arena project in Bengaluru serves as another example, where the developer allegedly refused to repair damage caused by a fire in the project’s clubhouse, passing the costs onto the association. Such incidents illustrate a broader pattern where developers shirk their responsibilities, burdening residents with additional costs and challenges.

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Strengthening Accountability

KRERA’s ruling is a step towards strengthening accountability in the real estate sector, ensuring that developers adhere to their obligations under RERA. For homebuyers, this decision provides a significant measure of protection, reinforcing their rights to a safe and defect-free living environment. As real estate regulations continue to evolve, it is crucial for both developers and homeowners to be aware of their rights and responsibilities, fostering a fairer and more transparent housing market.

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