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Time of India
4 days ago
- Business
- Time of India
Big relief for homebuyers! Karnataka government plans special cell to recover dues from builders
Bengaluru: Here is a ray of hope for homebuyers in Bengaluru and other parts of the state as the govt is finally cracking the whip on errant builders: A dedicated 'Recovery Cell' is in the final stages of being set up to ensure that real estate developers, who defy Karnataka Real Estate Regulatory Authority (K-Rera) orders with regard to compensating buyers, are held accountable and forced to pay up. This move comes after years of frustration for homebuyers, who neither received property ownership nor got compensation, despite clear directives from K-Rera. Speaking to TOI, Rera chairman Rakesh Singh confirmed most of the groundwork was completed and a final call on whether the cell should operate under Rera or revenue dept will be taken in a meeting to be chaired by the chief secretary next week. In fact, the concept of a recovery cell was mooted in the backdrop of non-adherence by realtors to Rera orders. "Though homebuyers were getting orders in their favour, the builders just shrugged off Rera directives and there was no accountability. But by establishing a recovery cell, compliance levels will go up," sources pointed out. You Can Also Check: Bengaluru AQI | Weather in Bengaluru | Bank Holidays in Bengaluru | Public Holidays in Bengaluru As per official data, Rs 724 crore is yet to be recovered from over 1,500 builders across the state as of May 31, 2025, with Bengaluru urban topping the list with Rs 710 crore. Composition of recovery cell The cell will focus exclusively on implementing Rera orders and will be led by a special deputy commissioner. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo It will include two grade-1 tahsildars, two headmen, and supporting clerical staff. The officers will be authorised under Section 40(1) of Real Estate (Regulation and Development) Act, 2016, and Rule 25 of Karnataka RERA Rules, 2017. The cell will be empowered to treat these dues as arrears of land revenue and take coercive action, including attaching the properties of defaulting project promoters. Rera has also recommended this cell be brought under Sakala Mission framework to ensure time-bound execution. Box Homebuyers praise the move Homebuyers say this initiative of setting up the cell will help protect their rights. M S Shankar, national general secretary, Forum For People's Collective Efforts, said: "Though Rera Act has strong provisions to protect the interests of the real estate sector in general, and homebuyers in particular, it is currently criticised as a 'toothless tiger' — mainly due to poor recovery of money awarded to homebuyers under Rera orders. Officials are now planning to set up a dedicated recovery cell exclusively to recover dues from such orders. This is good news for homebuyers and could go a long way in resolving the ongoing issues surrounding refunds." Dhananjaya Padmanabhachar, convenor, Karnataka Home Buyers Forum, said, "Once Rera passes the orders, it is the responsibility of the revenue dept to enforce the recovery and ensure that homebuyers get justice. However, the revenue department often remains inactive and fails to take timely action. It is crucial to have dedicated revenue recovery officers either within Rera or revenue department to ensure effective recovery. These officers should also be empowered to attach the properties of defaulting promoters. Additionally, the revenue recovery mechanism should be brought under the Sakala Mission to ensure time-bound enforcement." Box 2: Recovery case details as on May 31, 2025 (District wise, Rs in Cr) District No. of cases where revenue recovery was ordered (Total RRC issued) Amount to be recovered from realtors Amount actually recovered Balance payable by realtors Bengaluru Urban 1,762 806.9 96.4 710.6 Bengaluru Rural 4 82.5 lakh - 82.5 lakh Mysuru 18 4.6 56.4 lakh 4.1 Dharwad 7 3.2 - 3.2 Belagavi 7 69.2 lakh 43.1 lakh 26.2 lakh Dakshina Kannada 13 4.1 - 4.1 Udupi 4 1.4 - 1.4 Total 1,815 821.8 97.4 724.4 *Figures rounded off Source: K-RERA
Hans India
05-07-2025
- Business
- Hans India
Recovery cell to be set up in Revenue dept for builder dues under RERA
In a major move to safeguard the interests of homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has proposed the creation of a dedicated Recovery Cell within the Revenue Department to recover over Rs 650 crore in pending dues from builders who have violated RERA norms. The decision comes amid growing criticism that K-RERA has failed to enforce its own orders against builders who have not delivered flats on time or violated other regula-tory conditions. Despite issuing Revenue Recovery Certificates (RRCs), several builders have continued to ignore the directives, prompting the need for a more fo-cused mechanism for enforcement. Currently, the task of enforcing RRCs lies with district collectors and tahsildars. How-ever, their existing administrative burden—including handling elections, census du-ties, and national events—has resulted in minimal focus on recovering these amounts. According to officials, just 62 out of 565 RRC cases have resulted in actual recovery, amounting to only Rs 18.7 crore, while the remaining 594 cases involve a backlog of Rs 347.44 crore yet to be 10 major builders account for nearly Rs 347 crore in unpaid penalties. Among them, Ozone Urbana Infra Developers Pvt. Ltd. leads the list with Rs 201 crore pending across 229 cases, of which only Rs 7.53 crore has been recovered so far. The idea for the Recovery Cell was supported by a proposal submitted by Forum for People's Collective Efforts (FPCE), a citizens' rights group advocating for strict im-plementation of RERA provisions. Welcoming the move, National General Secretary of FPCE, MS Shankar said, 'We commend the decision to consider setting up a ded-icated recovery cell to handle builder defaults under RERA. If implemented, Karna-taka will become the second state in the country to have such a system.' The new cell is expected to ensure swifter enforcement of K-RERA's compensation orders, prevent fraudulent practices by errant builders, and offer long-overdue relief to affected homebuyers. The formal proposal has now been submitted to the state gov-ernment, and discussions are underway to operationalize the cell in the coming months.
