In a landmark order, the Kerala Real Estate Regulatory Authority (K-RERA) has permitted an association of flat allottees to take over an under-construction apartment project after the promoter failed to deliver. This is the first such decision in Kerala, marking a significant precedent in safeguarding the interests of homebuyers.
The Case of MIR Cintra Project in Angamaly
The case pertains to the MIR Cintra project in Angamaly, developed by MIR Builders and Developers Pvt Ltd. Despite collecting nearly ₹15.06 crore from flat buyers, the promoter failed to complete even the structural works of the nine-storey building. The registered association of allottees, MIR Cintra Association, approached K-RERA seeking intervention.
Promoter’s Failure and Admission of Financial Inability
K-RERA had earlier directed the promoter to complete the project in a time-bound manner, granting an extension of registration. However, the promoter failed again and later filed an affidavit admitting that the company was in no financial position to either complete the construction or pay compensation to the buyers. The promoter also consented to handing over the project to the association.
K-RERA’s Special Powers Under RERA Act
Exercising its special powers under the Real Estate (Regulation and Development) Act, 2016, K-RERA allowed the association to:
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Take over the stalled project and complete all pending works, including flats and common amenities.
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Register as the new promoter of the project without paying registration fees.
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Cancel the existing joint venture agreement (JVA) between the promoter and landowners.
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Enter into a fresh JVA with the association, enabling a smooth legal takeover.
Association Plans to Revive Project
According to Sandeep Sreekumar, the legal representative of the allottees, the association of around 50 flat owners will pool funds to complete the construction. This move has given buyers fresh hope after years of legal battles and delays. The association now aims to complete the project and deliver long-awaited homes to members.
A First-of-Its-Kind Order in Kerala
The order is being seen as a milestone judgment in Kerala’s real estate sector. By empowering allottees to step in as promoters, K-RERA has sent a strong message that homebuyers’ interests will be prioritized over defaulting builders. Experts believe this decision could set a precedent for other stalled projects across the state.
