KRERA has ruled that both developers and landowners are jointly responsible for arranging water and sewerage connections in joint development housing projects. The decision follows complaints from 30 homebuyers of a Yelahanka project who had paid for utilities but are still waiting for connections due to non-payment of dues to BWSSB. KRERA also directed both parties to hand over all necessary project documents to the residents' association. The order strengthens buyer rights and holds landowners accountable, even if the power of attorney has been revoked.
KRERA has passed a strong order clarifying that in joint development real estate projects, landowners cannot shift full responsibility to developers when it comes to securing water and sewerage connections. The ruling came after 30 homebuyers from a residential project in Yelahanka, Bengaluru, filed a complaint. They claimed they were promised BWSSB (Bangalore Water Supply and Sewerage Board) connections and had already paid for them, yet the connections were still not provided.
KRERA found that while BWSSB had issued a demand notice of INR 91.36 lakh, the payment was not made, causing the challan to lapse. The developer has paid INR 30 lakh and assured the authority that an additional INR 23 lakh would be paid within two weeks. The remaining INR 38.37 lakh is the responsibility of the landowner, who has not yet made any payment.
The authority clearly stated that both the developer and landowner must coordinate to obtain the water and sewerage connections and cannot pass the burden entirely on one party. KRERA also instructed them to hand over all relevant documents including title deeds, joint development agreements, sanctioned plans, occupancy certificate, and all other statutory approvals to the Residents Welfare Association (RWA).
KRERA referred to a previous Supreme Court judgment, which held that landowners involved in joint development agreements cannot avoid liability by simply revoking the power of attorney granted to the developer. The landowner remains legally bound by the obligations of the project and must ensure compliance with statutory requirements.
This ruling comes at a time when Karnataka is dealing with widespread delays in real estate project deliveries. Over 2,600 housing projects across the state have either lapsed or expired. In response, the state government has announced the formation of a dedicated 'Recovery Cell' to enforce KRERA orders and recover pending dues from developers.
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