In a notable ruling with significant implications for joint development residential projects, the Karnataka Real Estate Regulatory Authority (K-RERA) has determined that builders and landowners share joint responsibility for providing essential civic amenities, including water and sewage connections, to homebuyers.
The decision, made on July 30 by a K-RERA panel led by Chairman Rakesh Singh and Member J R Reddy, arose from a complaint filed by 30 residents, including L. Arun, against Adi Developers. The case pertained to the Adi North Lake project in Agrahara village, Bengaluru North taluk, developed under a joint development agreement (JDA) between Adi Developers and landowner B A Rajagopal.
K-RERA underscored that the duty to provide basic infrastructure in joint development projects cannot solely fall on the developer. Instead, landowners also bear equal responsibility, particularly when the lack of such services affects residents’ quality of life. The panel urged collaboration among the developer, landowner, and residents’ welfare association with the Bangalore Water Supply and Sewerage Board (BWSSB) to ensure final water and sewage connections are secured.
Additionally, the authority mandated that all original project documents—including title deeds, joint development agreements, approved plans, possession certificates, and necessary statutory approvals—must be transferred by both the developer and the landowner to the residents’ welfare association.
Residents claimed that despite charging homebuyers, Adi Developers neglected to secure BWSSB water and sewage connections. BWSSB had issued multiple warnings about the potential suspension of the sewage treatment plant (STP) connection, urging the parties to apply for Cauvery water and sewage links, but no action was taken.
In June 2021, BWSSB issued a demand notice for ₹91.36 lakh. While ₹30 lakh was paid, the landowner allegedly did not pay his share of ₹38.37 lakh, resulting in a missed payment deadline. There were also pending works related to water and sewage that remained unfinished, leading to ongoing hardship for residents. K-RERA invoked Section 11(4)(j) of the Real Estate (Regulation and Development) Act, mandating the transfer of the entire housing project—along with all legal and operational documents—to the residents’ welfare association. The authority noted that the failure to transfer documents hindered compliance with prior orders and delayed the provision of essential amenities.
This ruling by K-RERA emphasizes that homebuyers in joint development projects possess the right to hold both builders and landowners accountable when basic civic services are insufficient. This decision is anticipated to impact similar disputes throughout Bengaluru and Karnataka.
