Karnataka RERA Rejects Homebuyers Association's Complaint Seeking Completion Of Pending Work, Cites Lack Of Jurisdiction

Background Facts

The Homebuyer Association (Complainant) mentioned that the builder (Respondent no 1) has failed to complete the construction of amenities like Clubhouse, Multipurpose Hall, Sewage treatment plant, Solar Heated Water Supply etc. and has also not handed over possession of the original documents of the project.

The association also contended that the builder had constructed additional structure on the terrace of the project by violating the sanctioned plan issued by Bruhat Bengaluru Mahanagara Palike (BBMP). Therefore, after the complaint of the homebuyers, the BBMP directed the demolition of the illegal structure constructed on the scheduled apartment.

Therefore, being aggrieved by the conduct of the builder, the Homebuyers Association filed a complaint before the authority seeking the completion of pending work, handover of the original documents and Rs. 5,25,000/- as compensation.

Contentions of Builder

The Builder contended that a complaint has been filed with the view of harassing them and that the complaint should be dismissed as per Rule 4(iv) of the Karnataka RERA Rules, 2017. The builder also contended that the entire construction of the project was completed on 20.12.15, and the occupancy certificate was issued by the BBMP on 14.07.2017.

The builder further contended that as per Rule 4(iv) of the Karnataka RERA Rules, 2017, projects where construction works have been completed and certified by the appropriate authority and where an application for the issuance of an OC has been made as of the date of notification of the Karnataka RERA Rules are out of the jurisdiction of the authority. Thus the complaint shall be dismissed.

Observation and Direction by Authority

Authority referred the case of M/s Cambian Technologies Private Ltd. vs. Karnataka Real Estate Regulatory Authority (WP NO. Petition No. 18843/2022) where the Karnataka High Court held that projects already completed or those with a granted completion certificate do not fall under the jurisdiction of RERA.

The Authority held that the provisions of RERA, 2016 cannot be applied to the project at this stage as the builder obtained the occupancy certificate on July 14, 2017, which is more than 6 years before the filing of the complaint by the homebuyer association.

Therefore, the authority held that the project would not fall under the definition of an ongoing project, thus it does not require registration under Section 3 of RERA, 2016. Additionally, the authority held that the defect liability period of 5 years, which has been stipulated under Section 14(3) of RERA, 2016, has also expired.

Case – Creative Elegance Apartments Owners Association Versus Creative Environs Builders & Developers (India) Private Limited & others

Citation - Complaint No: 00563/ 2023

Date of Order – 26 September, 2024