Karnataka RERA Struggles to Collect Rs 486 Crore in Builder Penalties

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    The Karnataka RERA (K-RERA) hasn’t managed to collect Rs 486 crore in penalties from builders who broke its rules. Even after seven years of K-RERA’s establishment, the slow penalty recovery process leaves complaints unresolved.

    In the past seven years, K-RERA has fined builders in 1,248 cases, totaling Rs 547.31 crore. However, only Rs 60.64 crore has been collected from 138 cases. The remaining Rs 486.68 crore is still pending collection from 1,110 cases.

    Many homebuyers feel frustrated as they’ve taken hefty loans to buy expensive flats, trusting the builders’ promises of timely delivery and amenities. Despite complaints to K-RERA, there’s been little response.

    Flat buyers complain that although K-RERA issued orders years ago, little progress has been made. Builders often challenge K-RERA orders in court, obtaining stay orders and delaying refunds to customers. For example, a builder owes Rs 90 crore to customers and is contesting K-RERA’s order in court.

    The establishment of K-RERA brought hope to many who have been cheated by dishonest builders. But prolonged delays in fund recovery dash the hopes of citizens investing in their dream homes.

    Also read : UP-RERA: Promoters Must Prove Land Ownership for Projects

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