Karnataka RERA orders homebuyers to take over the project

The real estate board of Karnataka has mandated that purchasers take over from the developer a luxury villa project that has been delayed and see it through to completion.
The developer, LGCL Urban Homes LLP, has not given over possession of the project, even after ten years, according to the Karnataka Real Estate Regulatory Authority (KRERA), which invoked section 8 of the RERA Act, which permits resident welfare societies to take over a project.
There are more than 26,030 behind-schedule projects in Bengaluru, valued at more over Rs 28,072 crore. Previously, homebuyers may approach the authority to take over and finish projects that have been delayed on their own, according to KRERA Chairman Kishore Chandra.
Eight years after construction began, the Residents Welfare Association (RWA) moved the authority, registering as a cooperative organization and arguing that the project was still unfinished.
The RWA stated that about 85% of the project is finished and that the remaining 25% will require spending Rs 26 crore.
“It is lawful for the homeowners to form a RWA in accordance with the Karnataka Cooperative Societies Act, 1959. The ruling, issued February 22, stated, “The developer has not honored the project’s completion, and the RWA has no choice but to take over the project for completion.”