This ruling came as the court allowed a petition filed by M/s Columbia Pacific Communities Pvt Ltd, Bengaluru, a company engaged in providing specialized senior-care services. The petitioner had been collecting common area maintenance charges from residents of Serene Urbana Apartments located in Kannamangala, Devanahalli.

Columbia Pacific Communities challenged a January 11 order issued by K-RERA, which had ruled that a complaint filed by the Serene Urbana Apartment Owners’ Welfare Association against Ozone Urbana Infra Developers Private Limited, the project developer, as well as the service provider and others, was maintainable.

The petitioner argued that the association’s disputes with the developer were unrelated to its role as a service provider and that it was unnecessarily dragged into the matter.

The complainant-association maintained that the service provider was collecting common area maintenance charges from apartment owners and insisted that its inclusion in the proceedings was essential, as the dispute with the developer could not be resolved without involving the petitioner.

After examining the records, Justice M. Nagaprasanna observed that the association’s complaint predominantly involved disputes with the developer, Ozone Urbana Infra Developers Private Limited.

The complaint sought to restrain the petitioner from mortgaging land, infrastructure, and assets, as well as from increasing common area maintenance charges until issues with the Serene Urbana Project were resolved. The judge noted that most of the prayers in the complaint were directed at the developer and other respondents, with only ancillary requests involving the petitioner.

The court highlighted that the petitioner’s agreements with individual apartment owners were limited to providing specific services, as outlined in the “services agreement.” Justice Nagaprasanna remarked that the petitioner had no obligations concerning the development or other activities of the apartment complex. Consequently, the court held that the petitioner could not be held liable for the liabilities of the apartment owners or the developer.

The court emphasized that the petitioner was being unfairly implicated in the proceedings due to disputes unrelated to its role. “For the folly of others, the petitioner is sought to be dragged into these proceedings. In the considered view of this court, the complaint against the petitioner, who is only a service provider, is not maintainable,” the judge stated.

In its ruling, the High Court concluded that the complaint against Columbia Pacific Communities Pvt Ltd was not maintainable, affirming that the service provider could not be held accountable for the disputes between the apartment owners’ association and the developer.

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On December 6, the SC upheld its sale by Indiabulls Housing at a public auction in 2019 under the Sarfaesi Act to a little-known Pune developer, Honest Shelters, which paid Rs 705 crore for it.

“The SC has not only clarified that the NCLT (National Company Law Tribunal) cannot look into the auction sale earlier conducted under the Sarfaesi Act by the secured lender, but has also upheld the orders passed by the high court and MahaRera with respect to rights and obligations of Honest Shelters for completion of the project and handing over the apartments to homebuyers,” said a source connected with the project.

Of the 164 apartments, 76 have been booked and the remaining are unsold. The source said all requisite permissions are in place, the civil construction is complete and part occupation certificate (OC) up to the 27th floor has been received. A flat buyer told TOI that although part OC was received more than a year ago, the builder had failed to hand over a single flat since then. But the source said a part OC won’t allow for a handover since amenities and facilities are yet to be created and made functional. “It is a common practice across all large projects. The handover of interiors will happen by March 2024,” he said.

“Honest Shelters has since made requisite changes in the project to be in full compliance with the building codes. The additional expense involved for the builder, including that for construction, is over Rs 580 crore,” he said.

In 2010, Shreeram Urban Infrastructure Ltd, currently under liquidation, took loans of over Rs 900 crore from Indiabulls Housing Finance Ltd for the project, but defaulted on them. The project was in a limbo for almost a decade.

The project has been mired in a series of litigations, leaving dozens of doctors, builders, fund managers, stock brokers, corporate honchos and NRIs high and dry. Aggrieved purchasers, who formed the Palais Royale Members’ Association, have already paid 20-100% for their homes, each measuring between 4,000sq ft and 8,000sqft. Some of the larger flats were sold for over Rs 50 crore each.

Work commenced in 2009, but charges of building violations by NGO Janhit Manch followed soon after. In 2019, the SC cleared the project completion by overturning a Bombay HC order and dismissed the appeal filed by the NGO.

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