RERA in a soup for violating rules as Bengaluru residents move Lokayukta

RERA in a soup for violating rules as Bengaluru residents move Lokayukta

It is accused of supporting the developers over homebuyers

A group of residents of an apartment in Bengaluru's society Kothnoor has moved the Lokayukta to probe the Real Estate Regulatory Authority (RERA) for allegedly overlooking the rules to favor a builder.

In April 2021, the residents approached RERA alleging that the builder violated the plan sanctioned by the administrative body Bruhat Bengaluru Mahanagara Palike (BBMP) and other authorities.

The documents showed that the builder had obtained the sanctioned plans for two projects. The first project (Schedule A) was spread over 2 acres 38 guntas, while the extent of the second project (Schedule B) was 2 acres 10 guntas.

A complainant Shailesh Charati claimed that the builder sold 245 apartment units in Schedule A by promising independent amenities. The main concern of the residents was the builder's move to make the amenities (including a sports facility and a clubhouse), a common property of owners of the apartments in Schedule B.

When the residents approached RERA, the real estate regulator dismissed the case by citing the sale deed in which the buyers had agreed to the utilization of the amenities by owners of apartments outside Schedule A. RERA overlooked the notice by the state environment impact assessment authority for violating the sanction plan and merging the projects.

Charati apprised Lokayukta about RERA overlooking the documents and cherry-picking the points to benefit the developer/promoters.

(The Revised Master Plan 2015 states that builders developing land measuring 20,000 sqm or higher, should hand over 15 percent of the land to the Bangalore Development Authority (BDA) to build parks, open spaces, and other amenities).

Charati argued that to bypass the rule, the builder split the 5.2 acres into two projects. He stated, "If the builder argues that they belong to the same project, he has denied 31.2 guntas of land for the BDA, which is a major violation."

Another erroneous decision of RERA

Meanwhile, in yet another complaint to the Lokayukta, a buyer, Dhananjaya Padmanabhachar, the founder, and convenor of the Karnataka Home Buyers' Forum, sought an inquiry against RERA for its unilateral order declaring a dispute as 'settled' after keeping it pending for two years.

In October 2013, Padmanabhachar had booked an apartment and the builder promised possession of the property by October 2016. In September 2020, he approached RERA complaining that the builder failed to hand over the apartment even four years after the expiry of the deadline.

He sought possession, an occupancy certificate, and compensation for the delay. But RERA kept the matter pending for two years.

Padmanabhachar stated, "They gave the hearing dates, but nothing was done. I decided to take the case to the National Consumer Dispute Redressal Commission (NRDRC) and conveyed this to RERA. I filed an application seeking withdrawal of the complaint in August 2022. But I was shocked to get an order from RERA declaring the matter as 'settled'. This was done despite knowing that I was taking the matter to NCDRC."