The Karnataka Real Estate Regulatory Authority (K-RERA) has intensified spot inspections to verify claims of developers on the status of projects. This comes in the wake of complaints pouring in from homebuyers now that the pandemic pangs have eased.
In a first, the authority comprising the RERA chairman and members directly conducted spot inspections. It visited three major apartment projects based on the complaints and ordered compensation and interest payment for the delay in delivering flats in several cases. “We have decided to carry out spot inspections as it gives us a better idea about the complaints of consumers and claims of the developers. It also helps us expedite the hearing and dispose of cases quickly,” said K-RERA chairman HC Kishore Chandra.
Chandra said the authority had received about 80 complaints against the promoters of a project they visited and orders have been issued in favour of consumers in 60 cases. The promoters have been asked to pay compensation and interest (about 10% of the paid amount that includes SBI’s marginal cost-based lending rate plus 2%) as most of the complaints were about the failure of developers to deliver flats within the agreed date.
Most of the complaints related to another project were about consumers not getting the promised amenities and the main grouse against the third developer was non-completion of project.
It is observed that K-RERA isn’t equipped with a dedicated squad to conduct spot inspections, a long-pending demand. K-RERA officials have appealed to the government to set up a RERA taskforce with prosecution powers. While the government is yet to respond, K-RERA has formed a team of retired engineers and is carrying out spot inspections. Officials said the team of engineers conducted 48 spots inspections over the past couple of months.
“Since the real estate sector showed clear signs of recovery, there have been more transactions and complaints. The number of complaints has seen a surge after the second wave receded last August and we need to step up measures like spot inspections,” said a K-RERA official. The authority is saddled with 6,765 pending complaints. It has disposed of 3,078 so far.
The uptick in complaints has apparently prompted the authority to go for spot inspections in selected cases. “It is the first time since the RERA Act came into force that K-RERA itself has started inspecting projects. It is a welcome development since some signs of proactive steps are being witnessed,” said E Suhail Ahmed, a RERA advocate.
However, not everyone is pleased with the development. In fact, a section of RERA activists describes it as mere cosmetic. “It is only a small gesture compared to the pending complaints and a lot more is expected from K-RERA. In fact, the authority should be given suo motu powers to conduct spot inspections and its report should be published to ensure transparency,” said MS Shankar, general secretary, Forum for People’s Collective Efforts.
