Understanding RERA's Role in Enhancing Transparency in Real Estate Projects: A Case Study on Pending Litigations

The Karnataka Real Estate Regulation Act,2016 (commonly known as K-RERA), Was established to promote transparency, efficiency and accountability, within the real estate sector. It aims to protect homebuyers while ensuring the developers adhere to their commitments. A recent case involving the project “Godrej Royale Woods” by Godrej Projects North Star LLP highlights the Act’s power and the importance of disclosing information related to litigations.

The Case Overview
The complainant alleged that the developers of “Godrej Royale Woods” failed to disclose ongoing litigations concerning the property while registering the project with Karnataka RERA. They sought for cancellation of the project’s registration and demanded the publication of all pending litigations on the

RERA web portal.
The developers countered these allegations by asserting that they were unaware of any pending litigations during the registration process. They argued that all required documents were submitted and verified before registration was granted. Additionally, the developers maintained that the complainant was neither an allottee nor an aggrieved party, questioning their right to file the complaint.

Key Issues Addressed

Disclosure of Pending Litigations:
RERA mandates full disclosure of any legal issues or litigations concerning a real estate project. This ensures transparency and helps prospective buyers make informed decisions. While the complainant argued that the developers violated this rule, the developers claimed there was no obligation to disclose litigation they were unaware of.

Locus Standing (place of standing) of the Complainant:
As per Section 2(d) of the RERA Act, only allottees or aggrieved persons have the right to file complaints. In this case, the complainant was neither, as they had no direct stake in the project. Thus, the Authority ruled that the complaint was not maintainable under Section 31 of the Act.

The Authority’s Observations:
While the complaint was dismissed, the Authority acknowledged the significance of the issue raised. The non-disclosure of pending litigations was deemed a violation of the spirit of RERA, which prioritizes transparency. To address this, the Authority invoked Section 37, directing the developer to update the information about litigations on the RERA web portal.
The Implications for Real Estate Enthusiasts
This case underscores several critical aspects of the real estate sector:

Transparency Is Non-Negotiable:
Buyers rely heavily on RERA registrations for accurate and complete information. Developers must ensure all details, including litigations, are disclosed to build trust.

Understanding Rights and Responsibilities:
Real estate enthusiasts and stakeholders must understand who qualifies as an “aggrieved person” under RERA. This case highlights the importance of having a direct stake in the project when filing complaints.

RERA’s Oversight and Flexibility:
Even when a complaint is dismissed, RERA has the authority to issue directions that enhance transparency. The use of Section 37 in this case demonstrates the proactive role RERA plays in protecting buyers’ interests.

Conclusion
For real estate enthusiasts, this case reminds them of the vital role RERA plays in regulating the sector. It not only enforces compliance but also addresses gaps to ensure a fair and transparent process for all stakeholders. Whether you’re a buyer, developer, or observer, understanding RERA’s provisions and judgments equips you to navigate the real estate market with confidence and ease.
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Stay tuned for more updates and insights into real estate laws and regulations as they continue to shape the industry’s future!

Understanding RERA’s Role in Enhancing Transparency in Real Estate Projects: A Case Study on Pending Litigations

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Understanding RERA’s Role in Enhancing Transparency in Real Estate Projects: A Case Study on Pending Litigations

chandanhiremath

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