KRERA pulls up Bengaluru developer for delay in issuing khata to a homebuyer

KRERA pulls up Bengaluru developer for delay in issuing khata to a homebuyer

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Karnataka Real Estate Regulatory Authority (KRERA) has pulled up Bengaluru-based real estate developer for failing to provide a homebuyer with their khata document for the apartment within two months as promised in the agreement.

KRERA pulls up Bengaluru developer for delay in issuing khata to a homebuyer
KRERA has pulled up a Bengaluru developer for failing to issue a homebuyer’s khata within the promised two months. (Representational Image) (Pexels )

“The developer is hereby directed to facilitate and assist the homebuyers in the transfer of Katha to his name within 30 days from the date of this order,” the KRERA order said.

A khata is a legal property account maintained by Bengaluru’s civic body that records ownership details and is required for paying property tax and carrying out property transactions.

KRERA said the transfer of title is deemed complete only after execution of a registered conveyance deed, issuance of the occupancy certificate, and transfer of khata in the allottee’s name.

Also Read: Karnataka RERA: Projects that applied for OC before RERA came into effect need not be registered

Buyer flags financial strain

The homebuyer told the authority that the delay had caused significant financial stress for their family.

“The builder had promised to issue the khata within 60 days of registration. It is almost 110 days, and they are still delaying the issue of the khata. This has affected our financial commitments, including loan EMI and rent,” the buyers said in their complaint, seeking relief and compensation for the delay.

The homebuyer argued that without the khata, they were unable to complete key formalities linked to ownership, despite having taken possession of the apartment and starting EMI payments to banks.

Also Read: Karnataka Tribunal sets aside KRERA order, grants relief to senior citizen after 12-year delay in villa possession

KRERA order

In its order, the authority referred to the terms of the sale deed dated January 3, 2025, to underline the contractual obligations between the parties.

KRERA pointed to Clause 136 of the sale deed, which provides that the purchaser is entitled to have the khata changed in his name and that the vendor has no further claims or rights in this regard.

“The allegation that the developer has to change the Katha to the name of the homebuyer and that its responsibility is on the developer only is not forthcoming in the terms and conditions of the sale deed,” adding that the contract, as executed, is binding on both parties.

“Therefore, there is a duty cast upon the developer to facilitate transfer of katha to the name of the homebuyers,” the order said.

“For newly constructed Apartments, the katha must be registered first by the builder and then transferred to the allottees. While the developers handle the initial bulk Katha registration for the Property, it is the individual allottee’s responsibility to complete the final transfer into their name,” it said.

KRERA said, under Section 17(1) of the RERA Act, transfer of title is deemed complete only upon execution of a registered deed of conveyance, along with the issuance of an occupancy certificate by the competent authority and transfer of khata in favour of the allottee.

“If the respondent fails to comply, liability will be determined and compensation ordered in due course,” the authority said.

A list of queries has been sent to the developer. The story will be updated if a response is received.

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