HomeLatestKarnataka homebuyers await ₹667 crore refunds

Karnataka homebuyers await ₹667 crore refunds

Karnataka homebuyers await ₹667 crore refunds

Karnataka’s real estate sector faces a mounting crisis, with homebuyers struggling to recover ₹667 crore in refunds for delayed projects. According to Karnataka Real Estate Regulatory Authority (KRERA), only ₹92 crore has been recovered across 233 cases from a total of 1,660 recovery orders passed. This amounts to a mere 14% success rate, leaving over 1,400 cases unresolved. Legal and administrative challenges exacerbate the issue, raising questions about the efficiency of the current recovery mechanism.

KRERA is empowered under the Real Estate (Regulation and Development) Act, 2016, to issue revenue recovery certificates (RRCs) directing the district administration to recover money from defaulting builders. However, systemic inefficiencies have slowed the process, with ₹486 crore pending recovery as of January 2024—a figure that has since surged by 37% to ₹667 crore. Legal experts attribute the delay to projects being categorised as land arrears, making auctioning a challenging and often unfeasible option. This bureaucratic bottleneck leaves affected buyers without a definitive timeline for relief.

The human cost of these delays is evident. Homebuyers are grappling with severe financial stress, compounded by the uncertainty surrounding their investments. Dhananjaya Padmanabhachar, Director of the Karnataka Homebuyers’ Forum, highlighted the devastating impact of developers’ non-compliance with KRERA orders. “This erodes trust in the regulatory framework and deepens the financial struggles of homebuyers,” he noted. Another buyer, awaiting ₹40 lakh from a delayed project, voiced frustration over the lack of decisive action, urging the government to blacklist defaulters to safeguard buyers’ rights.

From a sustainability perspective, stalled real estate projects contribute to urban sprawl and waste of resources, while incomplete developments burden local infrastructure. Resolving these disputes efficiently is essential to maintain a sustainable urban landscape. Promoting accountability among developers not only protects homebuyers but also ensures judicious use of land and resources, aligning with broader goals of sustainable urban growth.

The Karnataka real estate sector’s predicament underscores the urgent need for stronger enforcement mechanisms, transparent processes, and government intervention to safeguard homebuyers and restore confidence in the market.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_img

Most Popular

Recent Comments

Shirdi Welcomes Its First Net-Zero Carbon Retreat

0
Shirdi Welcomes Its First Net-Zero Carbon Retreat Eco Hotels and Resorts Limited is set to redefine sustainable hospitality in Shirdi with the launch of 'The...

Ahmedabad Embraces Vertical Growth with New Towers

0
Ahmedabad Embraces Vertical Growth with New Towers Ahmedabad is experiencing a seismic shift in its urban landscape, with skyscrapers rapidly reshaping the skyline. This transformation,...
Mumbai SRA Project Exit Earns Build Capital 19.76% IRR

Mumbai SRA Project Exit Earns Build Capital 19.76% IRR

0
Mumbai SRA Project Exit Earns Build Capital 19.76% IRR Mumbai SRA project has delivered a strong financial outcome for Build Capital, as the firm successfully...
Delhi Commercial Real Estate to Boom with MPD-2041

Delhi Commercial Real Estate to Boom with MPD-2041

0
Delhi Commercial Real Estate to Boom with MPD-2041 Delhi’s commercial real estate sector is on the brink of a major transformation, driven by the ambitious...
Lodha to Buy 3.4-Acre Land in Jogeshwari for Housing

Lodha to Buy 3.4-Acre Land in Jogeshwari for Housing

0
Lodha to Buy 3.4-Acre Land in Jogeshwari for Housing A well-known real estate company is planning to purchase a 3.4-acre land parcel in Jogeshwari West,...