Karnataka State real estate body faces problems over fine collection from builders

Recovering penalty amount from builders is a real challenge for K-RERA. As per the current rules, RERA issues recovery orders and sends them to the district administra-tions. Only if K-RERA is given the power to recover penalty amount, home buyers will get justice, feel industry sources

Bengaluru: Recovering the fines imposed on builders and promoters who violated the rules has become a major headache for the Karnataka Real Estate Regulatory Authority (‘K-RERA’). According to the figures of ‘K-RERA’, revenue recovery orders have been issued in 1,539 cases against builders who violated the rules, including not handing over flats on time, in the state so far, out of which Rs 707 crore is to be recovered from the builders. However, in only 185 cases, only Rs 79 crore, or 12 percent, has been recovered. The remaining Rs 627.32 crore is to be recovered.

The responsibility of collecting the fines by implementing RRCs has been entrusted to the respective District Collectors and Tahsildars as per the RERA rules. However, they are already suffering from the workload of the revenue department and are tak-ing unnecessary days off. Due to this, it is not wrong for home buyers to flock to the offices of the district collectors and tehsildars. On the other hand, builders are not paying attention to the orders of the authority.

Although the rule stipulates that developers should respect RERA orders within 60 days, it has not been of any use. Therefore, there is a cry for the power to implement the orders to the currently ‘toothless’ K-RERA. Many organizations including FPCE, Karnataka Home Buyers Forum, Karnataka Flat Owners Association, which are fighting for the effective implementation of the RERA Act in the state, are submitting petitions to the government and putting pressure on it.

There should be a revenue officer in ‘K-RERA’ to recover the dues from builders and promoters. The home buyers are demanding that the officer be given the power to seize the properties of builders who do not pay the fine to the home buyers as or-dered and to issue arrest warrants if the order is not complied with.

Three years ago, when K S Lathakumari was the K-RERA secretary, she had submit-ted a proposal to the government saying, “The orders issued by the Karnataka Real Estate Regulatory Authority (K-RERA) against builders who do not provide flats to home buyers on time are not being implemented. Despite the orders in their favor, the number of home buyers flocking to the District Collector’s office for relief is increasing day by day. Therefore, the authority should be given the power to enforce RERA or-ders and RRCs. A separate enforcement department should be allowed to be opened.”

But no one knows what happened to that proposal. This has been discussed many times at the government level, and there has been interest in finding a solution to this. But the home buyers are of the opinion that no work is being done in that regard.Recovering penalty amount from builders is a real challenge for ‘K-RERA’. As per the current rules, RERA issues recovery orders and sends them to the district administra-tions. Only if K-RERA is given the power to recover penalty amount, home buyers will get justice, said M S Shankar, General Secretary, FPCE.