BENGALURU: The Karnataka Real Estate Regulatory Authority (K-RERA) has issued a significant ruling, prohibiting Sanchaya Land and Estate Private Limited from entering into any sales agreements or executing sale deeds for apartments, as well as creating third-party interests until the project is completed and an occupancy certificate is obtained from the relevant planning authority.
This decision follows complaints from approximately 100 home buyers against the developer, who failed to deliver flats booked in March 2013, which were promised by December 2014. The developer was tasked with constructing 650 flats in a group housing project called The Green, located in Kapur village, Kasaba Hobli, Anekal taluk. Home buyers have already paid 90% of the total cost.
The ruling determined that the builder had not only failed to finish the construction but also breached regulatory norms. “The Registrar is instructed to freeze the accounts of the promoters in accordance with Section 4(c) of the RERA Act to facilitate the completion of the remaining development work,” states the judgment signed by K-RERA Chairman Rakesh Singh and Member GR Reddy.
Moreover, the ruling mandates the promoter to establish the Association of Allottees under the Karnataka Co-operative Societies Act or Companies Act within 30 days. “The promoter must provide the Authority with a list of all allottees, including their contact information for Phases I and II of The Greens. The costs associated with this formation will be borne by the promoter, and the association will have the first right to oversee the project,” the ruling indicates.
K-RERA has also stated it will take suo-moto action against the respondent for any violations under Sections 60, 61, 63, and 69 of the Act, without the need for complaints from allottees.
Buyers’ Relief
Home buyers have expressed their support for the landmark ruling by K-RERA, citing the long delays in construction.
“As one of the first 100 home buyers who booked my flat in March 2013, I learned about The Greens through an advertisement. I was to receive possession by December 2014, yet my flat remains unfinished. I’ve been paying both EMI and rent. I’m pleased that K-RERA has acknowledged the challenges faced by home buyers,” said Sanchita Banerjee, a home buyer.
“Unfortunately, hundreds of home buyers were trapped in this scam. K-RERA’s judgment offers us comfort.”
–Sudhir Menon, home buyer
Echoing her sentiments, Sudhir Menon expressed his satisfaction with the K-RERA ruling: “Unfortunately, hundreds of home buyers fell victim to this scam. The K-RERA judgment brings us some relief.”
Raghunathan KC, president of The Greens Buyers’ Association, also welcomed the K-RERA decision, noting the ruling came after a five-year wait since filing in 2019. “It has clearly exposed the fund misappropriation by the builder, who collected 90% of payments and yet lacks a physical office or staff. This landmark judgment serves as a warning to all errant and fraudulent builders,” he stated.
