If is often seen that real estate companies become insolvent while its promoters remain wealthy. Some of these promoters and directors are also known to declare or make their entities bankrupt and embark on opening new companies under different names.
The idea is to cheat homebuyers or avoid paying compensation to them for either delay in delivering the flats or for sub-standard quality or for not honouring the commitment made at the time of signing an agreement.
Most aggrieved home buyers then lodge complaints with the jurisdictional police or file petitions in the court. As they are unaware, they mention the name of the real estate company in the complaint or petition.
They do not know that they have to include or mention the names of promoters and directors of the real estate company in the complaint.
HC order
The recent High Court order had directed petitioners to be relegated back to the Karnataka RERA for the determination of their rival contentions afresh in the execution proceedings in accordance with law. The High Court issued the order while hearing a petition filed by Vasudevan Sathyamoorthy and Priya Vasudevan.
The respondents are the state government, Deputy Commissioner of Bengaluru Urban, the Secretary of Karnataka Real Estate Regulatory Authority, the Special Tahsildar, Bengaluru North, and 23 others.
“It is clear that without the petitioners being made parties to either to the RERA order or the execution proceedings, it was impermissible for the respondent No. 4-Tahsildar to proceed against the petitioners herein and consequently, on this ground alone, I am of the considered opinion that the impugned Japti notices deserve to be quashed and the parties are relegated to execution proceedings before the RERA for adjudication of rival contentions afresh in accordance with law,’’ the High Court Judge said.
The High Court order stated that the RERA shall implead the petitioners and other directors as parties to the execution proceedings.
Karnataka Home Buyers Forum Sanchalak Dhananjaya Padmanabhachar described the order as an eye opener for home buyers.
“We recommend all home buyers who are litigating in RERA or Consumer Courts to include the Builder company name, Founders/Executive Directors of the company name and landowners names individually included as respondents in their cases to get justice,’’ Padmanabhachar said.
Retired Naval veteran commander Surendra emphasised on the need of including promoters’ names. “The RERA must amend the rules to accommodate inclusion of land owners while lodging complaints,’’ he said.
