Years after the implementation of the Real Estate Regulation and Development Act (RERA), prominent builders in Karnataka continue to disregard recovery orders issued by the Karnataka Real Estate Regulatory Authority (K-RERA). Consequently, distressed homebuyers, despite having favorable orders, find themselves pursuing justice through the courts and various government offices.
When RERA was first enacted, there was hope that victims of real estate fraud would receive prompt assistance. Unfortunately, that expectation has largely gone unfulfilled. A striking illustration of this is that ten major builders collectively owe Rs.347 crore in penalties to homebuyers but have yet to settle these debts.
According to data obtained through an RTI query, as of May 15, K-RERA had issued 656 revenue recovery certificates (RRCs) against prominent builders/promoters in 565 cases, amounting to `366.20 crore. However, actual recovery has only been achieved in 62 cases, totaling a mere `18.70 crore.
The remaining 594 cases involve unpaid penalties amounting to Rs.347.44 crore. Activists have pointed out that despite the substantial outstanding amount, K-RERA has demonstrated minimal interest in taking decisive action.
The authority seems to be evading responsibility by shifting the burden to revenue officers, as reported by complainant homebuyers. According to Section 63 of the RERA Act, non-compliance with authority orders should incur daily penalties on builders, potentially reaching up to 5% of the estimated cost of the housing project.
Nevertheless, K-RERA has not effectively enforced Section 53 of the Act. “Even though homebuyers possess favorable orders, many remain unaware of the enforcement mechanisms. If RERA authorities themselves are unable to enforce their orders, buyers are left with no choice but to escalate the matter to civil courts, which is not a feasible solution,” stated an activist.
