Karnataka RWA Registration Confusion: Order Contradicts High Court and State Government

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    The Karnataka Real Estate Regulatory Authority (KRERA) recently ordered a Bengaluru developer to form a resident welfare association (RWA) under the Karnataka Societies Registration Act (KSRA), 1960. However, this order has caused confusion and concern among flat owners as it contradicts previous rulings from the Karnataka High Court and the state government.

    Key Points of the Dispute:

    KRERA’s Order

    • Directed the developer of the Sai Poorna Luxuria project to form an RWA under KSRA.
    • Aims to provide relief to homebuyers for project completion and obtaining an occupancy certificate.

    Contradictions

    • High Court Orders: Multiple High Court orders, including one for Lilium Gardenia apartment, state that RWAs cannot be registered under KSRA.
    • State Government: Karnataka Registrar of Cooperative Societies and Housing Department clarify that RWAs should be registered under the Karnataka Cooperative Societies Act, 1959.

    Consequences

    • KSRA does not allow RWAs to collect maintenance charges, which is a crucial function.
    • The order creates legal uncertainty and potential challenges for homebuyers.

    Stakeholder reactions to the recent directive from the Karnataka Real Estate Regulatory Authority (KRERA) regarding the formation of resident welfare associations (RWAs) have been marked by concern and a call for coherence in legal interpretations.

    Homebuyers have expressed worry over the directive’s contradiction with existing laws. They stress the significance of consistent and compliant rulings to avoid confusion and legal complexities.

    Experts in the field have underscored the necessity for heightened awareness among both homebuyers and regulatory authorities. They advocate for an appeal against the directive to seek further relief and clarity amidst the conflicting interpretations.

    Moving forward, stakeholders await KRERA’s response to the raised questions. Meanwhile, homebuyers are deliberating the option of appealing the directive to the appellate tribunal for potential resolution. It’s imperative for authorities to strive for enhanced clarity and consistency in regulations governing RWA registrations to mitigate confusion and ensure a cohesive framework for all involved parties.

    Overall

    This case highlights the need for clear and consistent regulations regarding RWA registration in Karnataka. The current situation creates confusion and potential legal difficulties for homebuyers. It’s crucial for authorities to work together to resolve these discrepancies and ensure the protection of homebuyers’ rights.

    Also Read: Property Buyers Beware: Unlinked Aadhaar-PAN Can Lead to 20% TDS, Not 1%

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