The long wait for allottees of the Nadaprabhu Kempegowda Layout may have just gotten longer with the Real Estate Regulatory Authority - Karnataka (K-RERA) giving an extension to the Bangalore Development Authority (BDA) for the project.
The Forum for People’s Collective Efforts, which consists of home buyers, has objected, questioning the logic behind granting an extension of ‘four years’.
The forum has written to K-RERA pointing out that an earlier registration certificate, signed by interim chairman Kapil Mohan in May 2018, had mentioned that the registration was valid from September 2017 to March 2018. On January 14 this year, Chairman M.R. Kamble mentioned the validity of the registration as September 2017 to December 2021.
“We have observed that RERA registration number for the Nadaprabhu Kempegowda Layout, Kengeri, has been issued with two registration certificates for the same project. It should have been extension of RERA registration under Section 6 (of the RERA Act), and Section 6 does not allow renewal for more than one year. We feel that the modification of end date, which is almost four years, would set the wrong precedent,” the forum has said in its letter.
The forum has appealed to K-RERA to issue suo motu directions to BDA to compensate allottees of the project, and get all other extended projects to file compliance reports with the authority. They want home buyers to be taken into confidence regarding the completion dates.
‘Error in end date’
But K-RERA said the extension was given after a hearing, which was preceded by an error in the end date mentioned in the registration certificate.
K.S. Latha Kumari, Secretary, K-RERA, told The Hindu that there cannot be two registration certificates for the same project as it is not a manual process. “When RERA was new, builders and promoters would apply and enter the end date of their choice without understanding the concept. When the BDA applied, they asked for three months. They then realised the mistake and approached us, asking for permission to enter the correct end date. But we told them that the authority has to to decide after a hearing,” she explained.
“With regard to the extension given, the authority has heard the case and based on the order, extension has been given,” she added.
The extension was given under the provision of Section 6. Asked about home buyers’ displeasure on giving more time to the BDA, she said, “It is in the interest of home buyers. We agree that home buyers should get possession within the stipulated time. But if you revoke registration, what happens to the home buyers who have made a purchase? We are not here to make the real estate sector suffer either. Both parties will suffer.”
The BDA Commissioner was not available for comment.
A BDA official said the underground drainage and water supply works were going on, following which asphalting would be done. “We have taken up work on a war-footing and we are confident of meeting the December 2021 deadline,” the official said.
Site allottees at wits’ end
The long wait and loan repayment have left allottees of sites in the Nadaprabhu Kempegowda Layout at their wits’ end.
Suryakiran A.S, committee member, Nadaprabhu Kempegowda Layout Open Forum told The Hindu that the project was started in 2010, and applications for sites were called in 2015.
“The final allotment list came in 2016. RERA came into being in 2017, and BDA gave 2018 as the end date. In 2018, in tenders called for infrastructure works, they mentioned 2020 as the completion date,” he said, explaining the timeline of the layout.
He said around 2,000 people have paid between ₹10 lakh and ₹96 lakh (based on site dimension) for the sites, many after taking home loans. “Due to the lapse in the construction time stipulated by the banks, home loans have been converted into commercial loans and we are paying a higher rate of interest. Even now, not much is ready in the layout. Around 500 people have apparently surrendered their sites,” he said.
The forum said some of its questions remained unanswered during a hearing at RERA on Friday. These include whether BDA, which has been in the dock for delay in the Arkavathy and Kempegowda layouts, will take up new projects while the Kempegowda project is incomplete, and if there is any guarantee of the BDA meeting the new deadline.
