Possession Given, Rights Denied? RERA Flags Delay, Khata Lapses & Facility Denial in Sobha Arena Case

Bengaluru | Courts/Forum Rulings

In a significant development for apartment buyers in Bengaluru, a RERA adjudication involving the Sobha Arena – The Square (Block 4) project has brought into sharp focus the gap between physical possession and legal completion. The complaint, filed under Section 31 of the Real Estate (Regulation and Development) Act, raises serious concerns on delay, denial of amenities, absence of Khata, and unfair trade practices by the promoter.

The buyers had purchased an apartment for over ₹1 crore and took possession in September 2022. However, the project had only a partial Occupancy Certificate (OC) in 2021, and a corrected OC was issued much later on 19.07.2025 following regulatory intervention. This delay became central to the dispute, with the buyers alleging that despite possession, they were denied access to promised facilities such as the clubhouse and swimming pool, and were not integrated into resident platforms.

A key issue highlighted in the case is the execution of sale deeds without Khata. The buyers contended that both land and individual flat Khatas were not in place at the time of registration, and that the promoter had failed to ensure proper municipal compliance. The records further indicate that Khata processes were completed only subsequently through BBMP intervention, underscoring administrative and compliance lapses.

The complaint also raised the issue of maintenance charges being collected prior to obtaining a valid OC, and before completion of statutory obligations. It was argued that under RERA, the responsibility for maintenance and common areas continues to vest with the promoter until full completion and transfer to the association as mandated under Section 17.

Another dimension of the case relates to unfair trade practices, including denial of access to amenities, incomplete documentation, and alleged non-compliance with statutory disclosures. The proceedings also touched upon concerns such as mortgage of project land after entering into agreements with homebuyers, raising questions on transparency and compliance with RERA provisions.

From a legal standpoint, the case reiterates an important principle:
“Possession without compliance is not completion.”

Reliance was placed on established consumer jurisprudence, including NCDRC rulings, to reinforce that delay compensation may extend until the date of valid Occupancy Certificate, even if buyers have taken physical possession.

Bengaluru Context: A Larger Pattern Emerging

This case is not isolated. With Bengaluru witnessing rapid apartment development across BBMP and emerging GBA areas, similar issues are increasingly reported:

• Registration of flats before Khata readiness

• Delayed or corrected Occupancy Certificates

• Early shifting of maintenance burden to residents

• Partial or restricted access to promised amenities

The evolving regulatory landscape, especially with integration under the Greater Bengaluru Authority (GBA) framework, is expected to bring more uniformity—but also greater scrutiny.

Public Advisory – What Buyers Must Check

Before taking possession or completing registration:

• Ensure valid Occupancy Certificate (not partial or conditional)

• Confirm Khata (land + individual unit) is in place

• Verify access to all promised amenities

• Avoid agreeing to maintenance charges before OC

• Check if common areas are transferred to association as per law

NammaWard Take

The Sobha Arena matter reinforces a critical shift in real estate regulation —
the law now evaluates not just delivery of flats, but delivery of legally compliant, fully functional living spaces.

For homebuyers, this is a reminder to move beyond brochures and possession letters, and focus on compliance-backed ownership. For developers, it signals that phased or partial compliance may no longer withstand regulatory scrutiny.

#NammaWard #RERA #BengaluruRealEstate #HomebuyersRights #Khata #OccupancyCertificate #UrbanGovernance #CourtsForumRulings