KRERA relief to home buyers from unregistered project

In what is being touted as a judgement that will impact a large number of home buyers who have invested in projects that are not registered under the Real Estate (Regulation and Development) Act, 2017, the Karnataka Real Estate Regulatory Authority (RERA) has ordered a developer to pay penalty until the buyers are given possession of the houses.

In a June 21 order addressing complaints by 10 home buyers against GM Infinite Dwelling (India) Pvt. Ltd. and GM Infinite E-City Town Phase-2, KRERA rejected claims of the developer seeking exemption from registration.

Booked in 2014

According to the complainants, they had booked flats in the project in 2014 and 2015 and were promised possession in December 2016 and January 2017, but the flats are yet to be handed over to them.

Among others, KRERA has ordered the developer to pay an interest from 2017 on the total amount paid by buyers who have expressed desire to continue in the project.

Unregistered projects

“As per the order, it is clear that home buyers of unregistered RERA projects can also file a complaint with RERA where project is not completed and not yet registered. Home buyers of the projects where manipulated and false CC/OC is obtained by builders who avoid RERA registration should complain to RERA. Such home buyers can pursue their cases now,” said M.S. Shankar from the Forum for People’s Collective Efforts, Karnataka Chapter.

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Printable version | Feb 25, 2020 12:47:21 PM |

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