Homebuyers left in the lurch for compensation under Karnataka RERA
Hundreds of homebuyers are waiting to get monetary compensation from defaulting builders even though it’s been months since the Real Estate Regulatory Authority, Karnataka penalised them for not delivering on their promises.
Lacking powers to enforce its orders, RERA has referred the cases to deputy commissioners of districts, asking them to auction properties of defaulting developers and pay out compensation.
Since its inception in July 2017, RERA has heard 3,750 complaints, of which it disposed of 1,150 in favour of homebuyers.
Most complaints related to the failure of builders to complete projects and RERA ordered developers to pay their customers compensation. If builders fail to comply with orders, the authorities can attach the properties, auction them and compensate buyers from the proceeds. But not a single buyer has been paid compensation so far.