In a significant win for homebuyers in Bengaluru, the Karnataka Real Estate Regulatory Authority (KRERA) has ordered developer Smart Value Homes Pvt Ltd to carry out permanent repairs in a flat at New Haven Bengaluru Phase V, where recurring water seepage was reported by the buyer soon after possession. The order underscores KRERA’s stand that developers remain responsible for structural and workmanship defects for five years post-handover.
Case Background: Seepage After Possession
- The buyer purchased a flat in New Haven Bengaluru Phase V, located in Dasanapura Hobli, Bengaluru North, and the sale deed was executed in December 2023.
- Soon after moving in, the buyer noticed water seepage through the walls.
- Although the developer initially repaired the defect using sealant in November 2024, the problem resurfaced in May 2024.
- With no further response from the developer despite reminders, the buyer approached KRERA seeking redressal.
KRERA Findings & Order
After reviewing the complaint and evidence:
- KRERA noted that the buyer had reported the defect within the stipulated period and had kept the developer informed.
- The developer claimed to have resolved the issue earlier and sought dismissal of the complaint.
- However, KRERA held that the repair was inadequate, and the recurring seepage needed a permanent solution.
- The authority directed the developer to complete the necessary repairs within two months.
The KRERA order clearly stated:
“Having regard to all these aspects, I am of the view that the developer is entitled to the reliefs claimed. Accordingly, the developer is directed to resolve the water leakage issue within two months.”
KRERA’s Stand: Developers Liable for 5 Years Post-Handover
This case is not unique. In another matter involving SNR Verity, Sarjapur, KRERA on June 13, 2024, ruled that:
- Developers remain obligated to address structural defects or workmanship issues for five years from the date of possession, even if a residents’ association has taken over maintenance.
Legal experts highlighted Section 14(3) of the RERA Act:
“It shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter’s failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation.”
Advocate Akash Bantia, who practices before KRERA, explained:
“Many buyers believe that once they take possession, the builder is off the hook. But that’s not true under RERA. The five-year clause provides a crucial safety net. Homebuyers can approach RERA or the consumer court for relief in such cases.”
Quick Facts: Case Summary Table
| Particulars | Details |
|---|---|
| Project Name | New Haven Bengaluru Phase V |
| Location | Dasanapura Hobli, Bengaluru North |
| Developer | Smart Value Homes Pvt Ltd |
| Sale Deed Executed | December 2023 |
| Issue | Water seepage after possession |
| KRERA Order | Developer to resolve within 2 months |
| Relevant Law | Section 14(3) of RERA Act |
| Developer’s Initial Fix | Sealant applied in November 2024 |
| KRERA Order Date (implied) | 2025 |
Expert Advice for Homebuyers
- Report any structural or workmanship defects promptly and keep all communication in writing.
- Developers are legally required to rectify defects within 30 days, if reported within 5 years.
- If unresolved, file a formal complaint with KRERA online or offline.
FAQs
Q1: How long are developers responsible for structural defects?
A: Developers are liable for up to five years from the date of possession to fix structural or workmanship-related defects.
Q2: Can I still approach the builder if a residents’ association has taken over?
A: Yes. Even after handover to the association, developers remain responsible for defects during the 5-year period.
Q3: What if the developer refuses to fix the problem?
A: You can escalate the matter by filing a complaint with your state’s RERA authority. KRERA has the power to order repairs and even compensation.
Q4: Does RERA cover only major structural issues?
A: No. It also covers quality of construction, promised amenities, plumbing, electricals, and common areas — unless specifically excluded in the agreement.
Q5: How should I report defects to the developer?
A: Always communicate in writing (email or registered post) and keep copies of all correspondence for evidence.