Karnataka Rera recovery cell plan shelved, welfare bodies disappointed | Bengaluru News


Karnataka Rera recovery cell plan shelved, welfare bodies disappointed

Bengaluru: A proposed cell to streamline recovery of dues in cases adjudicated by the state’s Real Estate Regulatory Authority (Rera) has been dropped, disappointing homebuyers. Instead, the govt has appointed a special deputy commissioner for Bengaluru Urban district to handle recovery of pending amounts.Officials said discussions were held on forming a dedicated recovery committee, but the plan was shelved as such a body would lack legal powers to enforce collections. Under existing rules, recovery authority rests with the respective district deputy commissioners, while agencies can only issue recovery certificates for action.Officials said 2,394 recovery certificates have been filed so far, with 317 cases currently listed for recovery.Earlier, the govt and Rera had proposed a dedicated recovery cell to enforce K-Rera orders. Announced in July 2025, the move came after complaints from buyers who had sought revenue recovery certificates (RRCs) against builders who failed to pay despite K-Rera orders. Officials had noted that slow recovery often forced homebuyers to approach the high court for compensation.“There appears to be a legal and technical hurdle in setting up the cell,” said MS Shankar, general secretary of the Forum for People’s Collective Efforts. He said the issue was recently discussed with the housing secretary, during which it emerged that a special deputy commissioner has already been tasked with recovering Rera-issued revenue recovery certificates within eight weeks.A joint meeting involving the revenue department, housing department and K-Rera to finalise the modalities of the special DC’s role, he said, could help address the issue. “The proposal had been under consideration for some time and the officer was recently vested with powers,” he added.According to FPCE data compiled from the K-Rera website, as of Jan 23, 2026, a total of 2,325 RRCs worth Rs 1,081.84 crore had been issued. Only 282 RRCs amounting to Rs 110.3 crore have been recovered so far, reflecting a recovery rate of 8.2% in number and 9.8% in value.Homebuyers’ associations have called for better coordination among govt departments overseeing the issue. “While Rera does not have direct recovery powers, there is a need for an empowered mechanism to monitor recovery by forwarding dues to revenue authorities. A specialised team, including Rera officials, would help streamline coordination and address homebuyers’ woes,” said Satish Mallya, president of the Bangalore Apartments’ Federation.“A practical reform would be to bring revenue recovery services under the Sakala framework, ensuring time-bound disposal of RRC cases with accountability measures, including penalties for delays by officials,” said Dhananjaya Padmanabhachar of the Karnataka Home Buyers Forum. He said authorities should also launch dedicated recovery drives and use available legal powers, including arresting defaulting promoters who fail to comply with RRC proceedings.Special DC for recoveriesTo speed up recovery of dues, the revenue department appointed a special deputy commissioner for Bengaluru Urban district in April. Officials said the post was created due to the high volume of recovery cases in the city, which made it difficult for regular district officials to manage the workload. The special DC is responsible for overseeing recovery proceedings, issuing notices, coordinating with departments, and ensuring execution of recovery certificates. Authorities said nearly Rs 7–8 crore has been recovered since April 2026.Special DC Jayamadava said one challenge is that builders often obtain stay orders or transfer properties to relatives before proceedings begin, making recovery difficult. He said amendments have been proposed to allow authorities to trace and attach linked properties and accounts, strengthening enforcement powers.Proposals have been submitted to modernise the recovery mechanism through an online portal.What is RRC?A revenue recovery certificate is issued by the regulatory body when a builder, promoter, allottee or real estate agent fails to comply with an order to pay compensation, interest or penalty to the homebuyer. Once issued, the amount mentioned in the RRC is treated as an arrear of land revenue, and the matter is forwarded to the district revenue authorities — usually the DC or tahsildar — for recovery.



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