The Karnataka Real Estate Regulatory Authority (KRERA) has pulled up a developer for failing to obtain the mandatory completion certificate (CC), a lapse that allegedly caused Mysuru homebuyers to face a 100% property tax penalty imposed by local authorities. In its order, the regulator observed that the developer had not fully complied, despite earlier directions in similar cases involving the same project.
KRERA directed the developer to secure the completion certificate from the competent authority and submit it to the regulator, along with a detailed compliance report outlining completed amenities and infrastructure works, as well as pending tasks. The developer has also been asked to provide a clear, time-bound action plan specifying when all remaining amenities, shared facilities and statutory compliances will be completed.
“The developer shall obtain the completion certificate from the competent authority and submit the same before this authority. The developer is directed to submit a detailed compliance report/action plan before this authority, clearly specifying the list of amenities and infrastructure works already completed and those remaining to be completed in the project,” the order said.
It further stated that the developer must identify a clear, time-bound schedule indicating when, and within what timeframe, each of the pending amenities, common facilities, and statutory compliance will be completed.
The case pertains to the residential project Astrum Grandview Phase I, in Mysuru, developed by Astrum Value Home. Launched in 2014, buyers alleged prolonged delays in the completion of common amenities, non-execution of statutory documents and failure to secure the Completion Certificate (CC), even years after handing over possession.
Nine years later, amenities remain incomplete
Homebuyers informed KRERA that they paid the entire sale consideration, including advance maintenance, club membership charges and a corpus deposit of ₹1 lakh per allottee.
“Possession letters were issued between 2020 and 2022, and several sale deeds were executed in favour of the complainants. However, despite such possession and registration, the Respondent has not completed the project in its entirety, not obtained the Completion Certificate / Completion Report, not executed the Deed of Declaration, not formed or handed over the Association of Allottees, and not completed the promised comhad paid the entire sale consideration, including advance maintenance charges, club membership charges, common amenities,” the order noted
The absence of a completion certificate has subjected several flat owners to a 100% penalty in property tax assessment by local authorities, it said. “Due to non-obtaining of the Completion Certificate, several complainants have been subjected to a 100% penalty in property tax assessment by the local authorities,” the order said.
Buyers further alleged that the developer deviated from the sanctioned plan, made unauthorised alterations, carved out and sold additional plots without consent, and reduced the undivided share of land of existing apartment owners.
KRERA order
In its findings, the authority held that the developer had failed to complete the project and promised amenities within the stipulated timeline.
“However, even after the lapse of nearly nine years, the Respondent has admittedly not completed several common amenities and facilities promised under the Agreement for Sale, brochures and representations made at the time of booking,” the order said.
The regulator rejected the developer’s contention that Phase I and Phase II were independent and that amenities were being developed in stages. “The Respondent, while admitting partial completion, has sought to justify the delay on the ground that development is being carried out in phases and that certain amenities are still under execution,” it said.
“Section 11(4)(a) mandates that the promoter shall be responsible for all obligations until conveyance of common areas to the association. Section 17 mandates a statutory obligation on the promoter to execute the registered conveyance deed in favour of the association of allottees, and hand over common areas and common facilities within the prescribed time,” the order said.
“The plea of phased development cannot be used as a tool to postpone compliance or deny legitimate rights of the allottees. The records reveal that even after an earlier order passed by this authority directing completion of amenities and formation of an association, the developer has failed to fully comply,” it said.
“In the event of failure to comply with the directions issued in this order or failure to submit the compliance report, the Authority shall initiate action under Section 63 of the Real Estate (Regulation and Development) Act, 2016, without further reference,” the order said.
A list of questions has been sent to the developer. The story will be updated if a response is received.
