The Karnataka Real Estate Regulatory Authority (K-RERA) has directed Eco Life Developers to constitute and register an association of allottees within 60 days, reinforcing the statutory obligations of developers towards homebuyers even after possession has been handed over. The authority has also ordered the developer to complete the necessary formalities for transferring common areas and the associated rights and titles to the association or the competent authority, as applicable.
The order was passed following a complaint filed by Swetha Rangaswamy, a homebuyer who alleged that Eco Life Developers had failed to fulfil key statutory requirements despite the completion of apartments and the handover of possession to residents.
According to the complaint, Rangaswamy and other allottees had been waiting for the developer to facilitate the formation and registration of their association with the competent authority. The association is required to take charge of common areas and receive the corresponding rights and title in accordance with the provisions of the Real Estate (Regulation and Development) Act, 2016.
Homebuyers Raise Concerns Over Registration Documents
Rangaswamy alleged that the developer had not provided the necessary documentation to establish that the association had been formally registered. When homebuyers sought proof of registration, the respondents reportedly stated that an association had already been registered under the Karnataka Apartment Ownership Act, 1972.
However, according to the complaint, the developer failed to furnish a certificate of registration issued by the competent authority to substantiate this claim.
The absence of the required documentation raised concerns among residents regarding the formal transfer of common areas and the completion of the statutory procedures governing the management of the property. The formation and registration of an association are important steps in enabling homebuyers to collectively manage shared facilities and exercise their rights over common areas.
The complaint highlighted that the issue remained unresolved even after the apartments were completed and possession had been handed over to the allottees.
K-RERA Directs Compliance With Statutory Obligations
In its order, K-RERA directed the respondents to take the necessary steps to constitute and register the association of allottees before the competent authority within 60 days, in accordance with applicable laws.
The authority also instructed the developer to fulfil its obligations under Sections 11(4)(f) and 17 of the Real Estate (Regulation and Development) Act, 2016. These provisions address developers’ responsibilities concerning the formation of an association or other collective body of allottees and the execution of conveyance documents.
The order further requires the respondents to execute the necessary conveyance or other transfer documents relating to the common areas and the undivided proportionate title in favour of the association of allottees or the competent authority, as applicable.
K-RERA stated that the respondents must take the required steps within the scope of their legal obligations to complete any outstanding statutory formalities.
Focus on Post-Possession Compliance
The order highlights that a developer’s responsibilities do not necessarily end with the completion of apartments or the delivery of possession. Formal registration of the allottees’ association and the transfer of common areas and associated property rights are important aspects of completing the legal and administrative processes of a housing project.
For homebuyers, these formalities provide a framework for collective management of common facilities, maintenance responsibilities and the exercise of rights over shared property. Proper documentation also helps establish the legal standing of the association and clarify the transfer of responsibilities from the developer to the residents.
The 60-day deadline gives Eco Life Developers a defined period to complete the outstanding requirements. The case also draws attention to the role of state RERA authorities in addressing complaints related to developers’ statutory obligations after possession.
The direction reinforces the need for developers to complete registration, conveyance and other legally required procedures within the prescribed framework, ensuring that homebuyers receive not only possession of their apartments but also the documentation and rights associated with collective ownership and management of their residential projects.
