RERA | Karnataka High Court Raps Panchayat For Issuing Occupancy Certificate Without Inspection, "From Within Four Corners Of AC Chambers"

The Karnataka High Court recently pulled up the Kannamangala Gram Panchayat for issuing occupancy certificate to a retirement home project without carrying out any inspection as to the actual state of the site.

While refusing to interfere with Karnataka RERA's order declaring the project 'Serene Urbana' an "on-going project", Justice M Nagaprasanna observed that the apartment complex did not even have water and power supply.

"None of the amenities that were assured and promised to lure the retired home buyers were in place. Sewage treatment plant was yet to come up. Lifts were not provided...Water supply was not complete...Therefore, it is necessary to admonish the competent authorities who are empowered to issue occupancy certificates not to sit in four corners of their air-conditioned chambers and issue occupancy certificates, to the developers, for their asking," Court said.

To avoid such situations in the future, the bench directed that henceforth, authorities shall inspect the property, satisfy themselves whether occupancy certificate can be issued in terms of law, and only then issue such occupancy certificate, "failing which those officers who handle such files where grant of occupancy certificate is sought, would be solely responsible and accountable for issuance of illegal occupancy certificates."

Court thus dismissed the petition filed by M/s Ozone Urbana Infra Developers Pvt Ltd. which sought to argue that the project is not registerable as it stands excluded under Karnataka Real Estate (Regulation and Development) Rules, 2017. Rule 4 of the said Rules states that promoters of all ongoing projects which have not received completion certificate shall make an application to the Regulatory Authority.

Court said the occupancy certificate was granted without even inspecting the property and thus, was blatantly contrary to law. It reminded the developers that homebuyers, particularly those investing in retirement homes, sometimes use up their entire lifetime's savings or raise money from financial institutions which exposes them to recovery action under the law. Thus, it advised them not make those citizens run pillar to post, to secure accommodation. "It is necessary to bear in mind that retired people should not be made to re-tire themselves," Court remarked and dismissed the developer's plea.

The developer has been asked to register itself before Karnataka Real Estate Regulatory Authority within 4 weeks.

Appearance: Advocate V.Sanjay Krishna for Petitioner.

Advocate Girish K V for R1.

Advocate G.Suriya Narayanan FOR C/R2

Citation No: 2024 LiveLaw (Kar) 74

Case Title: M/s Ozone Urban Infra Developers PVT Ltd AND Karnataka Real Estate Regulatory Authority & Others.

Case No: Writ Petition No 26194 OF 2023

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