The Karnataka Real Estate Regulatory Authority recently ordered recovery of more than Rs 707 crore in 1,539 cases, involving 257 delayed real estate projects in the state of which 88% amount is yet to be recovered.
According to the RERA 2016, while the real estate regulatory authority is empowered to issue a revenue recovery order, the power to retrieve the money lies with the district administration. No wonder, K-RERA is facing criticism for its ineffective recovery process, leaving homebuyers in financial distress.
K-RERA's own statistics reveal a disturbing trend - despite issuing recovery orders worth over Rs 707 crore in 1,539 cases, involving 257 projects, only Rs 79 crore (11%) has been recovered in 185 cases. Homebuyers are still owed more than Rs 627 crore from 1,354 cases.
Industry professionals point out that the actual recovery relies on the district administration, which has no time limit to follow, and this loophole allows builders to delay payments indefinitely.
Even in Maharashtra, the MahaRERA recovered compensation of Rs 175 crore so far out of Rs 672.91 crore dues from real estate developers. So far, MahaRERA has issued 1,117 warrants to 423 housing projects to recover Rs 672.91 crore, of which it has managed to get a total of Rs 175 crore from 131 projects, linked to 268 complaints. In order to improve its penalty recovery rate, MahaRERA is in the process of appointing a retired tehsildar. With the new appointment of a retired tehsildar, the recovery process is expected to improve further.
Meanwhile, the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has issued more than 8,575 recovery certificates amounting to Rs 3,015 crore so far, and only about 32% of this amount has been recovered till date.
Despite RERA's assurances of expediting the process, homebuyers continue to face agonizing delays, casting doubt on the authority's effectiveness in providing timely relief.
Legal experts suggest the best way to implement the recovery process is to have a special revenue recovery officer with similar powers as the District Commissioner to make the recoveries within stipulated timelines.
For now, RERA across the country remains a toothless tiger unable to protect home buyers' interests. Giving more executive powers to RERA is crucial to make it an effective regulatory body in true sense for the common man.
