The Karnataka Real Estate Regulatory Authority (KRERA) has dismissed a complaint filed by Godrej Properties against a homebuyer who refused to pay the balance amount until the developer furnished land litigation documents for the Godrej Aqua project that is still pending in the Devanahalli civil court. The KRERA found that the civil litigations of the project area were pending since January 24, 2019, and the sale agreement was signed in July of the same year. The authority concluded that homebuyers cannot be held liable for not completing the payments, and that developers must disclose the discrepancies on the official website so that prospective investors can be alerted.
The Karnataka Real Estate Regulatory Authority (KRERA) has dismissed a complaint filed by Godrej Properties against a homebuyer who refused to pay the balance amount until the developer furnished land litigation documents for the Godrej Aqua project that is still pending in the Devanahalli civil court. The buyer had signed the sale agreement in July 2019 and only became aware of the pending case later.
The KRERA order dated February 8 states that developers are obligated to display discrepancies in land litigation on the “official website of the project” to alert potential investors. The KRERA found that the civil litigations of the project area were pending since January 24, 2019, and the sale agreement was signed in July of the same year.
The authority concluded that homebuyers cannot be held liable for not completing the payments, and that developers must disclose the discrepancies on the official website so that prospective investors can be alerted. KRERA directed the developer to furnish the documents as per the checklist within two months of the order and dismissed the developer's complaint as premature.
The KRERA ruling has been deemed a landmark decision, and it is the responsibility of the developer to be transparent about the land documents. Homebuyers have every right to ask for a refund along with compensation for non-disclosure of the documents and can challenge the developer at the RERA court.
Godrej Aqua spans 7.18 acres and has 540 units spread across nine towers. The handover date is mentioned as January 2023 onwards, according to the Godrej Properties website. The KRERA order highlights the importance of developers being transparent about land documents and their obligation to disclose discrepancies on the official project website so that prospective buyers can be aware of potential issues.
Homebuyers also have the right to request documents and challenge developers in the RERA court. This ruling is significant in a market where disputes over land ownership are common, and developers often use disputed land parcels to maximize profits. However, the KRERA has not been strictly verifying and following the documents uploaded by the developer on the KRERA website, which means that homebuyers must remain vigilant and approach the courts for relief if they find discrepancies.
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