Exclusive: Karnataka HC pulls up state govt for not filling vacancy in KRERA, piling up cases

The appellate tribunal hears appeals (from homebuyers or developers) against orders passed by the state regulatory body.

The Karnataka High Court has taken serious note of the fact that the state government has not taken any steps to fill the vacancy for chairman in the Karnataka Real Estate Regulatory Authority (KRERA) Appellate Tribunal, thus making it non-functional, since June 2023.

Without a chairperson, the tribunal cannot hold hearings and, hence, homebuyers stuck in limbo approached the court to appeal against orders passed by the state's regulatory body, advocates said.

"The tribunal is not functional due to the absence of the chairman. Thus, the state is prima facie piling up cases at the Karnataka High Court," the order dated January 22 said.

The appellate tribunal hears appeals (from homebuyers or developers) against orders passed by the state regulatory body.

A June 15, 2023, KRERA notification read, "The chairman is relieved of duties. The bench cannot be constituted for proceedings due to the vacancy."

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The HC petition was filed by Mathew Thomas, a buyer of a flat in the Sobha City project in Bengaluru, developed by listed real estate developer Sobha Ltd.

Chaitanya SG, the advocate who represented Thomas said, "An order was passed by KRERA in September 2022 asking the developer to execute the sales deed, to provide water connection, form a residents’ welfare association (RWA) and to hand over the common areas to the RWA."

The Karnataka High Court noted that the last appeal was filed by Sobha (against the order passed by KRERA) in February 2023. "However, the same still remains pending due to the vacancy, especially when the Tribunal is supposed to dispose of the appeal within 60 days of the complaint. The state government should inform about the timeline of the new chairman before the next hearing on Feb 2," the court order said.

Homebuyers in a lurch

Chaitanya said that if no chairperson is appointed, the objective of having the regulatory body is defeated. "The complaint of the homebuyers, who paid upwards of Rs 3 crore to buy a rowhouse, is five years old since it was filed in KRERA and is before the tribunal for three years without relief," he added.

Ameya Usgaonkar, another buyer in the same project, has been waiting on his appeal before the tribunal since October 2022. "We have almost 55 buyers who are still waiting and the homebuyers in the project continue live without a water connection and fire (department) NOC (no-objection certificate). While KRERA fails to provide resolutions, buyers who have invested in crores wait for relief," Usagaonkar pointed out.

A list of questions has been sent to Sobha Ltd and the story will be updated after receiving a response.

Sources in KRERA, on condition of anonymity, said that the sluggish nature of the proceedings is largely due to understaffing. In 2022, the department had requested the state government to provide more staff.