The Karnataka Real Estate Regulatory Authority (K-RERA) has managed to recover only `91 crore of the `758.85 crore penalties imposed on 278 builders for violating regulations, leaving `666 crore still outstanding. According to K-RERA’s latest report, as of December 31, 2024, the authority has collected just 12% of the dues from builders, while 88% remains to be recovered.
This slow recovery has left numerous homebuyers, who are still awaiting their rightful compensation, running between the offices of Deputy Commissioners and Tehsildars for relief.
Sources said that K-RERA has issued Revenue Recovery Certificates (RRCs) for 1,660 cases involving a total of `758.85 crore.
Out of these, only 233 cases have seen successful implementation, resulting in `91.33 crore being collected and disbursed to affected homebuyers. In previous years, recovery rates were around 10-11%, increasing slightly to 12% in 2024.
However, the penalty backlog continues to grow, with dues rising from `400 crore in 2023 to over `650 crore in 2024.
Despite K-RERA’s mandate that builders must comply with orders and pay compensation within 60 days, many developers have failed to adhere. The responsibility for recovering these penalties has been delegated to district administrations, including Deputy Commissioners and Tahsildars, who are already overburdened with other duties.
On the other hand, officials have been accused of delaying action, leaving homebuyers in the lurch. While K-RERA has been issuing orders to address complaints, many of these directives remain unimplemented, causing further frustration among homebuyers.
A home buyer said, “We have urged K-RERA to appoint dedicated revenue officers to expedite recovery. They are demanding stricter measures, such as seizing the assets of defaulting builders and issuing arrest warrants if orders are not followed.” The list of defaulters includes several high-profile developers For instance, a prominent developer alone owes `178 crore. These cases highlight that even reputed builders are failing to comply with K-RERA’s orders.
Source Homevior.in
