The Karnataka Real Estate Regulatory Authority (KRERA) has pulled up a Bengaluru-based developer for failing to issue the khata to a homebuyer despite handing over possession of the apartment. The regulator has directed the builder to ‘transfer and facilitate’ the khata in the buyer’s name within 30 days of the order date.
“The Respondent is hereby directed to transfer and facilitate the transfer of Khata to the name of the complainant within 30 days from the date of this order,” the KRERA order said.
A khata is an official property record issued by Bengaluru’s civic authority that establishes ownership and is mandatory for paying property tax and carrying out legal property transactions.
For newly constructed apartments, the khata must first be registered by the builder and subsequently transferred to the allottees. While developers are responsible for initiating bulk khata registration for the project, individual allottees must complete the final transfer into their names, an earlier KRERA order had noted.
Also Read: KRERA pulls up Bengaluru developer for delay in issuing khata to a homebuyer
The case
The case relates to a flat purchased for around ₹60 lakh in 2021, for which the sale agreement was executed in the same year. In his complaint, the allottee informed KRERA that the project was incomplete and that the developer had failed to secure an occupancy certificate and a khata, despite committing to do so.
{{/usCountry}}The case relates to a flat purchased for around ₹60 lakh in 2021, for which the sale agreement was executed in the same year. In his complaint, the allottee informed KRERA that the project was incomplete and that the developer had failed to secure an occupancy certificate and a khata, despite committing to do so.
{{/usCountry}}The developer, however, denied the allegations, terming them “false”, and argued that issuance of the occupancy certificate was linked to the outcome of a long-pending land dispute. The developer told KRERA that after the buyer took possession of the apartment and the sale deed was executed in his favour, it had provided an individual electricity meter, water connection, separate car parking, a sewage treatment plant (STP) and rainwater harvesting facilities.
The developer also cited financial distress, noting that apartment sales in the project stalled during the pandemic, leading to losses.
Also Read: Karnataka RERA: Projects that applied for OC before RERA came into effect need not be registered
KRERA reiterates promoter obligations, sets deadlines
Rejecting the developer’s arguments, KRERA underlined that statutory obligations under RERA cannot be diluted due to financial difficulties or pending litigation.
“As per section 14 of the RERA Act, it is a bounden duty and obligation of the developer to complete the project as per the sanctioned plan, layout plans and specifications as approved by the competent Authorities,” the regulator said.
“And the promoter is responsible for obtaining the completion certificate or the Occupancy Certificate, or both as applicable, from the relevant competent Authority as per local laws or other laws for the time being in force and to make it available to the allottees individually or to the association of allottees, as the case may be,” the order said.
KRERA directed the developer to complete all pending works related to the flat within 90 days and ordered the builder to “transfer and facilitate” the khata in the homebuyer’s name within 30 days from the date of the order.