Landowners & Builders Equally Accountable for Project Delay: Karnataka-RERA

Bengaluru, May 8: Karnataka RERA has ruled that landowners and builders are equally accountable for project delays, dismissing a complaint over a delayed Bengaluru housing scheme and disputed financial management issues.

Case Background

The complaint pertained to BS Susheela Ramamurthy, who owns two acres of land in Dodda Kallasandra village. The complaint concerned the builder's failure to complete the project, Maangalya Park Avenue, on time and alleged misuse of funds meant for construction. The project was originally launched by Pioneer Developers and subsequently transferred to Maangalya Ventures Private Limited, but remained substantially incomplete even after respondents collected money from allottees and borrowed Rs 22 crore.

K-RERA Ruling

K-RERA made it clear that the complainant, being a landowner, cannot seek any relief or remedy against the promoter. "We are of the considered view that no scope is left for further discussion when the complaint itself is not maintainable. This complaint deserves to be dismissed," the RERA order reads.

What the Law Says

As per Section 2(zk) of the RERA Act, 2016, a promoter includes a person who constructs a building or develops land into a project for selling plots or apartments. The authority ruled that landowners and promoters both shall be deemed jointly liable for responsibilities under the Act.

Expert View

Welcoming the K-RERA judgment, Dhananjaya Padmanabhachar, Sanchalak of Karnataka Home Buyers Forum, said landowners have equal responsibility under RERA as builders. "The K-RERA order gives a clear direction, stating that landowners cannot misuse RERA in disputes between themselves and builders," he said.