In a significant ruling that settles a long-standing ambiguity, the Karnataka Real Estate Regulatory Authority (K-RERA) has clarified that residential projects which applied for Occupancy Certificates (OC) before May 1, 2017, are not required to be registered under the Real Estate (Regulation and Development) Act, 2016. The decision comes in response to complaints filed by homebuyers alleging incomplete construction in projects such as Hamilton Homes and Fidussa Homes near Electronics City.
This ruling reaffirms that projects with OC applications filed before the enactment of the RERA Act are exempt from registration, even if some finishing work remains pending. K-RERA dismissed the complaints, stating that the projects in question had met legal compliance before the law took effect.
Hamilton Homes and Fidussa Homes Complaints
Homebuyers SR Balaji and others from Doddathogur filed complaints with K-RERA regarding the Hamilton Homes project developed by SJR Prime Corporation. The primary concern was that the project remained incomplete and should have been registered under RERA for transparency and accountability.
The complainants also cited similar issues with the Fidussa Homes project, launched in 2012. Out of the 359 flats planned in the project, 120 were incomplete, and several core services like water supply and waste management systems were yet to be handed over. Additionally, the developer had not transferred the common areas to the resident welfare association.
OC Application Precedes RERA Deadline
K-RERA reviewed the documents and found that the developer had submitted the OC application in December 2016 and received the certificate on May 17, 2017. Since the RERA Act came into effect on May 1, 2017, the project did not fall under the registration requirements.
Referring to the Karnataka High Court’s 2022 judgment in the case Cambian Technologies Pvt Ltd vs K-RERA, the Authority reiterated that if a developer had applied for and obtained OC or Completion Certificate (CC) before May 1, 2017, the project would not be subject to RERA registration—even if some work like painting, tiling, or other internal finishing was pending.
Final Verdict: Complaints Dismissed
The complaints were heard by a single-member bench consisting of K-RERA Chairman Rakesh Singh and Member GR Reddy. After considering the developer’s arguments and verifying the OC application date, the Authority concluded that the project had fulfilled its obligations in time.
The minor internal works cited by homebuyers were deemed post-possession activities that do not constitute ongoing construction. As such, the complaints were dismissed, and the builder was found to be in compliance with all legal norms.
This order is likely to influence how similar disputes are handled in the future. It provides much-needed clarity for developers and homebuyers alike, emphasizing that the date of OC application is the deciding factor for RERA registration—regardless of minor finishing works.
