Possession Isn’t The Finish Line: Karnataka RERA orders builder to complete promised amenities
In a significant interpretation of the RERA Act, the Authority held that possession alone does not discharge a developer’s statutory obligations toward homebuyers.
The judgement reminds consumers that accepting possession does not mean forfeiture of their rights to get agreed services completed. (AI Image)
Handing over the apartment keys is the culmination of what has usually been a long property-buying process for most homebuyers. However, for Bengaluru resident Yoganandan Jagannathan, it became the start of a new fight after taking possession of his flat.
Almost 10 years after taking possession of his apartment at the New Haven Bengaluru Phase I project, Jagannathan filed a complaint with the Karnataka Real Estate Regulatory Authority (K-RERA), claiming that several facilities were left incomplete and the developer did not hand over common amenities to the society’s association.
According to an order passed on June 3, 2026, K-RERA said possession-taking does not complete a builder’s liability under the Real Estate (Regulation and Development) Act, 2016 if developers do not provide amenities that they promised buyers.
Jagannathan had purchased a flat in the project, developed by Smart Value Homes (Peenya Project) Pvt. Ltd. and Tata Value Homes Ltd., for around Rs 40 lakh and took possession in February 2017. The township has nearly 1,800 apartments, with around 1,300 homes sold.
However, according to the complaint, residents continued to face issues long after moving in. Issues such as non-provision of DG power backup to residents (which allegedly was promised by the developer as part of the project), non-completion of amenities and non-transfer of common facilities/maintenance accounts/documents with the apartment owners’ association were among the list of complaints shared by the buyer.
The homebuyer requested various reliefs including restoration of DG power back-up supply, completion of amenities and refund of certain maintenance-related charges besides the handing over of common amenities/facilities and all project-related accounts to the apartment owners association.
K- RERA partially allowed the complaint after hearing both parties. The Authority asked the developer to provide DG power backup connection to the complainant’s apartment and ordered him to complete all amenities mentioned in the sale agreement.
More importantly, the Authority ordered the developer to transfer the land khata, BESCOM electricity meters, water meters, corpus fund, escrow account balance and maintenance accounts to the authorised association of allottees within 90 days.
However, K-RERA declined the complainant’s request for refunds of maintenance charges, municipal taxes and certain other monetary claims.
The order upholds a critical interpretation of RERA that states delivery of possession is not the end of a builder’s obligation. He also needs to deliver what he promised to build, along with handing over operative common facilities and transferring common area maintenance (CAM) records and society items to the association within the time-frame specified under the law.
The order could give hope to lakhs of homeowners across India who have taken possession of their projects but are still waiting for promised amenities to be delivered. The judgement reminds consumers that accepting possession does not mean forfeiture of their rights to get the agreed services completed.
