The High Court of Karnataka has said that officials appointed by the State government should conduct inquiry and take a decision when they receive complaints against promoters from flat purchasers over matters such as defects in building/material used and unauthorised changes that go against the agreement specifications.
The court also said that if a case is made out in the grievance of the purchaser, the authorised officers should ask the promoter to make “true and full disclosure of all transactions in respect of a separate account” maintained for sums taken as advance or deposit, including those taken towards share capital for the formation of a co-operative society or a company, or towards outgoings such as municipal or other local taxes, tax on income, water charge and electricity charge.
A Division Bench comprising Chief Justice Abhay Shreeniwas Oka and Justice Pradeep Singh Yerur passed the order while disposing of a PIL petition filed by Bangalore City Flat Owners’ Welfare Association.
The association had sought directions to the State governments and authorised officials to implement the provisions of the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 to safeguard the interests of flat purchasers. It also stated that the State authorities had not responded to its complaints on violation of the provisions of the Act by promoters.
While making it clear it had not considered the provisions of the Real Estate (Regulation and Development) Act, 2016 in this petition, the Bench declined to give a direction to the government to delegate powers to the registrar of cooperative societies for the implementation and execution of the Karnataka Ownership Flats Act on the lines of the law in Maharashtra.
The Bench also said that flat purchasers would have to approach the competent courts under Section 15 of the Karnataka Ownership Flats Act with their complaints against promoters for violations punishable with a fine or imprisonment of up to four years, or both.
