In a notable decision furthering the interests of home buyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has ruled in favor of a residential society in Nagawara, instructing them to assume ownership and control of a high-end project that the builder left unfinished for the past seven years.
Furthermore, the authority has granted permission to the society to vend the unsold apartments as a means to generate resources for the project's completion. On August 3rd, the RERA panel, consisting of Chairman HC Kishore Chandra and members Neelamani N Raju and GR Reddy, approved the Hanging Gardens Nagawara Flat Owners’ Co-operative Society for this course of action.
The construction of the "Hanging Gardens" project near Hebbal in Nagawara was initiated by Orchid Elite Developers Private Ltd, formerly known as Prisha Properties India Pvt Ltd, in the 2014-2015 timeframe. Envisioned as a three-tower apartment complex spanning nine floors, comprising 132 flats, the initial agreement outlined a completion target of 2016. Regrettably, by that time, just under half of the project had been finished.
Selling between Rs 1.5 crore and Rs 2 crore, the builder successfully marketed 45 units of 3-BHK flats. However, the completion of the project faced obstacles as the builder cited financial challenges for the inability to finalize the work," remarked Anil Navali, President of the society, in a conversation with The New Indian Express.
The RERA registration for the project was finalized by March 30, 2021. Many pledged amenities, including the clubhouse, had not yet commenced, as Navali highlighted. "While certain buyers had paid 80% of the project expenses, others had settled the entire sum."
Confronted with an unresolved predicament, buyers sought RERA's intervention in 2021. "After undergoing 22 hearings spanning a period of eighteen months, the president confirmed that the authority ruled in our favor." The association has pinpointed a new promoter willing to fund the project and raise capital by selling unsold flats, he appended.
The RERA directive stipulates an 18-month timeline for the society to conclude the project's work. The order additionally places a hold on the current account maintained by the original promoter. "All responsibilities of the initial promoter, inclusive of the funds acquired, will remain under their purview," Anil clarified.
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