3 years of RERA, yet 3.3 lakh home buyers at a loss in Karnataka

BENGALURU : Nearly 3.3 lakh property buyers who invested in 1,100 projects in the State are waiting to register their homes and fear that their funds are stuck, despite the existence of the Karnataka Real Estate Regulatory Authority (K-RERA), meant to safeguard buyer interest, says the Forum for People’s Collective Efforts.

Collating data on housing projects in Karnataka up to December 3, available on the RERA web portal, M S Shankar, secretary of the forum’s State chapter, said, “As of today, 1,100 projects are stuck. Assuming each property costs at least Rs 50 lakh, and up to 80% of the money has been paid up by nearly 3.3 lakh buyers, which is an average of Rs 40 lakh, it translates to a whopping Rs 120 lakh crore blocked in the projects.” Shankar said 1,044 projects remain unregistered with RERA, while developers of 866 projects claimed they have been completed. Of the 4,410 projects which have applied, 3,704 have been registered, he said. 

“The minute details of the projects, quarterly reports and financial balancesheets are still not put up on the website, despite many representations to K-RERA and the State Government,” he pointed out. Nearly 1,400 developers are yet to submit their reports, but at least details of those who have submitted need to be put up,  he added.

RERA Secretary K S Latha Kumari said it is not possible to display details furnished by the developers until they are thoroughly verified by an empanelled in-house team. “We cannot put up details of those who have submitted alone. We have issued a warning to upload quarterly reports by December 31. After details are submitted and verified, they can be displayed on its website for the public,” she said.

Conceding that RERA still has much to do, she added that the organisation was formed only in July 2017 and was doing its best to help buyers. Among the buyers who have invested in properties which have been prolonged indefinitely are those who sought to buy 1BHK apartments at Pashima Brookfields in Bidrahalli. Col (retd) M Narasimha paid Rs 22 lakh to buy a flat for his son here. 

“Work began in August 2013 and was supposed to conclude by August 2016. It is now four years after the deadline has elapsed and only 50% of the project is ready.” The buyers have now approached the National Company Law Appellate Tribunal seeking justice, he added.