KOCHI: In a groundbreaking ruling, the Kerala Real Estate Regulatory Authority (K-RERA) has permitted a flat allottees association to assume control of an under-construction apartment complex from its developer.
K-RERA exercised its special authority under the Real Estate Regulation and Development Act, 2016, to facilitate the takeover of the nine-storey apartment complex located in Angamaly. The registered association, MIR CINTRA, approached K-RERA after the promoter, MIR Builders and Developers Pvt Ltd, failed to deliver the flats to the allottees. The association highlighted that despite collecting ₹15.06 crore from them, the developer had not even completed the structural work of the building.
Although K-RERA directed the promoters to finish the project within a specified timeframe and extended their registration, the completion was not achieved. The promoter later admitted in an affidavit that their financial situation was so poor they couldn’t even pay compensation. Additionally, the promoter agreed to transfer control of the project to the flat allottees association.
The order, stemming from suo motu proceedings initiated in July last year, states, “The association may take over the MIR Cintra project and carry out all remaining construction work, including the building of apartments and shared amenities. The association will also be allowed to register as the project’s promoter and will be exempt from any registration fees. The existing joint venture agreement (JVA) between the promoter and the landowners will be annulled, and the landowners will be instructed to enter a new JVA with the association to facilitate the takeover.”
Sandeep Sreekumar, the association’s legal representative, stated that they plan to complete the remaining work by pooling funds from around 50 flat owners who are members of the association. “This order, a first of its kind from K-RERA in the state, brings immense relief to the allottees who have been legally contesting for years, and they are optimistic about reviving the project,” he mentioned.
