Karnataka High Court stays application of RERA norms for BDA projects for which land acquisition notifications were issued prior to May, 2017

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Justice Suraj Govindaraj passed the interim order on a petition filed by the BDA challenging the applicability of RERA provisions to its development activities carried out under the BDA Act and more particularly for the projects for which land acquisitions process had commenced prior to enforcement of the RERA. | Photo Credit: K. MURALI KUMAR

The High Court of Karnataka has stayed the operation and applicability of the Real Estate (Regulation and Development) Act, 2016, (RERA) to certain residential layouts and housing scheme projects undertaken by the Bangalore Development Authority (BDA) for which preliminary notifications for acquiring lands were issued prior to the commencement of the RERA framework.

Justice Suraj Govindaraj passed the interim order on a petition filed by the BDA challenging the applicability of RERA provisions to its development activities carried out under the BDA Act and more particularly for the projects for which land acquisitions process had commenced prior to enforcement of the RERA.

Pointing out that the BDA undertakes a large-scale formation of layouts based on statutory land acquisition processes, which are often subject to uncertainties relating to timing, possession, and completion of acquisition proceedings, it was argued on its behalf that treating the BDA’s projects as “ongoing real estate projects” under the RERA would impose obligations that are not practically compatible with the statutory framework governing acquisitions under the BDA Act.

The BDA has moved the High Court after its contention that the authority does not come under the provisions of the RERA was rejected both by the Karnataka-Real Estate and Regulatory Authority (K-RERA) and the Karnataka Real Estate Appellate Tribunal. This was following the litigations by allottees of Nadaprabhu Kempegowda Layout for delay in completion and a severe lack of fundamental infrastructure like water, roads, electricity, and sewerage by the BDA.

Both the authority and the tribunal had decla