Karnataka RERA yet to extract Rs.486 crore of penalty from Builders Developers

The Karnataka Real estate Regulatory authority has not yet received Rs. 486 crore penalty from builders for violating its orders. K-RERA has come into force since seven years, and so far it has imposed a penalty in 1,248 cases and the penalty amount added up to Rs. 547.31cr. Till now, penalty has been collected in 138 cases and the total penalty collected is Rs 60.64 crore. But, it has not yet recovered Rs. 486.68 crore from 1,110 pending cases.

One of the citizens said, “As the prices of flats are quite high, most of us have borrowed loans by paying  paying huge interest. While buying, the builders promise us the moon saying that they will provide all the amenities and deliver the houses in the given time but most of us defy deadlines and we have no other choice. Despite pleading with the builders there is no response and this is when we have   approached K-REARA. There has been no response.”  

On the other hand, officials said that, in maximum cases the builders have approached various courts and have got stay orders. For an example, a prominent builder has to repay Rs.90crore to the customers and challenging the K-RERA order, the builder has approached court and the cases are still going on. 

The Real Estate Regulation and Development (RERA) Act, 2016 is known as one of the landmark legislations passed by the Government of India. Its main objective is to redefine the real estate sector across India. It is encouraging greater transparency, citizen centricity, accountability, and financial discipline. This is aligned with vast and growing economy of India as in future many people will be investing in the real estate sector. 

Another one of the citizen said, that the foundation of the K-RERA had brought them immense joy, given the countless individuals who have fallen victim to unscrupulous builders. Many of the persons have invested quite a hefty amount to make their dream home a reality, but haven’t got it in return. RERA is strengthening the rules and regulations of real estate market, so, that the citizens gets what they pay for.