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Sunday, July 21, 2024

K-RERA yet to recover Rs 486 crore as penalty from builders

The Karnataka-Real Estate Regulatory Authority (K-RERA) is yet to recover Rs 486 crore penalty from builders for violating its orders. It has been seven years since K-RERA came into force. With a slow recovery of penalties, complaints are left in the limbo.

So far, in the last seven years, K-RERA has imposed a penalty in 1,248 cases and the penalty amount added up to Rs 547.31 crore. Till now, penalty has been collected in 138 cases and the total penalty collected is Rs 60.64 crore. It is yet to recover Rs 486.68 crore from 1,110 pending cases.

A citizen said, “As the prices of flats are quite high, most of us have borrowed loans by paying huge interest. While buying, the builders promise us the moon saying that they will provide all the amenities and deliver the houses in the given time but most of us defy deadlines and we have no other choice.

Despite pleading with the builders there is no response and this is when we have approached K-REARA. However, it is sad to note that despite orders from K-RERA, there has been no response.”

Many flat buyers say that the K-RERA had passed the orders years ago and yet nothing much has happened. Many of the builders have failed to return the money for complainants.

Meanwhile, officials said that in most of the cases, the builders have approached various courts and have got stay orders. For example, a prominent builder has to repay Rs 90 crore to the customers and challenging the K-RERA order, the builder has approached court and the cases are still going on.

The Real Estate Regulation and Development (RERA) Act, 2016 is considered as one of the landmark legislations passed by the Government of India. Its objective is to reform the real estate sector in India, encouraging greater transparency, citizen centricity, accountability, and financial discipline. This is in line with the vast and growing economy of India as in future many people will be investing in the real estate sector.

Another citizen said that the establishment of K-RERA had brought them immense joy, given the countless individuals who have fallen victim to unscrupulous builders. “Many have invested significant sums in pursuit of their dream homes, only to be left empty-handed.If the recovery of funds is prolonged unnecessarily, it shatters the hopes of citizens,” they said.

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