Karnataka High Court Criticizes Panchayat over Issuance of Occupancy Certificate of Retirement Home Project without Inspection

Karnataka High Court Criticizes Panchayat over Issuance of Occupancy Certificate of Retirement Home Project without Inspection

The Karnataka High Court admonished the Kannamangala Gram Panchayat for granting an occupancy certificate to a retirement home project without conducting any inspection to verify the actual condition of the site.

Justice M Nagaprasanna, while declining to intervene in Karnataka RERA's decision categorizing the 'Serene Urbana' project as an "on-going project," noted that the apartment complex lacked essential amenities such as water and power supply.

The court observed that none of the amenities promised to attract retired home buyers were present at the site. Essential facilities such as a sewage treatment plant and lifts were not installed, and the water supply was incomplete. The court criticized the competent authorities responsible for issuing occupancy certificates, cautioning them against granting such certificates to developers without proper inspections and verification of amenities.

In order to prevent similar situations from arising in the future, the bench issued a directive. That going forward, authorities must conduct thorough inspections of the property and ensure compliance with the law before issuing occupancy certificates. The court observed that officers handling files related to the issuance of occupancy certificates will be held responsible and accountable for any certificates issued in the absence of proper inspections.

The court dismissed the petition filed by M/s Ozone Urbana Infra Developers Pvt Ltd., contending that the project is not eligible for registration as it falls outside the scope of the Karnataka Real Estate (Regulation and Development) Rules, 2017. Rule 4 of the mentioned Rules mandates that promoters of all ongoing projects lacking a completion certificate must apply to the Regulatory Authority.

The court highlighted that the occupancy certificate had been issued without inspecting the property, constituting a clear violation of the law. It cautioned developers about the significant financial commitments made by homebuyers, especially those investing in retirement homes, who often utilize their life savings or borrow from financial institutions. This exposure to legal recovery actions underscores the importance of ensuring compliance with regulations. The court emphasized that citizens, particularly retirees, should not be subjected to unnecessary challenges in securing accommodation. The court while dismissing the petition observed “It is necessary to bear in mind that retired people should not be made to re-tire themselves.”

The developer were instructed to register with the Karnataka Real Estate Regulatory Authority within a period of four weeks.

Case Title: M/s Ozone Urban Infra Developers PVT Ltd AND Karnataka Real Estate Regulatory Authority & Others.