The Karnataka revenue department has attached 11 apartments worth Rs 25 crore in a delayed luxury project in Bengaluru, a document reviewed by Moneycontrol showed.
Currently, the process of auctioning the attached apartments is under way to recover money for the homebuyers, Prashanth Mirle, who argued for the homebuyers said.
Additionally, the developer, KRSNA Projects, has started registering the sale deeds of 50 apartments in the project, following a Karnataka Real Estate Regulatory Authority (KRERA) order.
The posh Krsna Laburnum in north Bengaluru was proposed in July 2014 and was to have been handed over to buyers in September-October 2016. Situated across ‘Billionaire's Street’ in Dollars Colony, each apartment costs Rs 3-4 crore.
After the initial delay, the homebuyers filed a RERA complaint for compensation in February 2019. KRERA passed an order in November 2019, directing the developer to pay delayed compensation at 2 percent per annum from May 2017.
“However, the developer failed to comply with the KRERA orders,” Mirle. “In between, there have been two high court cases – one stayed and another disposed of – where the developer tried to stop the revenue department from attaching the assets.”
Following that, the Bengaluru Urban Deputy Commissioner moved to attach the assets.
Initially, the developer completed the building structure and obtained a partial occupation certificate from the Bruhat Bengaluru Mahanagara Palike (BBMP) in 2021, Mirle said.
“At that time, and even now, clearances from Bangalore Water Supply and Sewerage Board, Bangalore Electricity Supply Company and environmental clearances are pending,” he added.
Under BBMP bylaws, a partial occupancy certificate (OC) is allowed for different floors of a building under “exceptional" cases. It was not clear how the partial OC was issued for Krsna Laburnum. Mirle said the developer obtained partial OCs for 47 of the 50 apartments.
“After the partial OC was issued, when the developer did not register the sale deeds, we filed another KRERA complaint in February 2022,” Mirle added.
On October 31, 2022, KRERA directed the developer to register the sale deeds within 15 days.
“And within a couple of days, the developer has started to register the sale deeds,” Mirle said.
A set of questions has been sent to the developer. Moneycontrol will update the story after receiving a response.
Senior citizens in limbo
Mirle said the majority of the homebuyers are aged above 65. Two families have already moved in.
Krishnam Raju, 73, who invested about Rs 2.5 crore in Krsna Laburnum, and his wife were the first to move in.
“We were staying in a rented house. But after waiting for nine years, we could not wait any more,” Raju said.
Currently, the project has no permanent water and electricity is supplied through a commercial line. Raju said only one of the four elevators is functional. Security and common amenities are missing. The developer is yet to deliver 16,000 square feet of common amenities, including a clubhouse.
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