India, Oct. 31 -- The Karnataka Real Estate Regulatory Authority (KRERA) has restrained a finance company from taking possession of flats purchased by a homebuyer in a mortgaged Bengaluru project, thereby protecting their ownership rights.

The order came after a buyer of two units in Aswani Sunshine, a project by Aswani Properties India Pvt Ltd, moved KRERA, stating that despite having registered sale agreements, their homes were at risk of being seized due to the developer's default on a loan. The mortgage, originally held by Indiabulls Housing Finance and later assigned to Edelweiss Asset Reconstruction Company, had not been disclosed to buyers at the time of purchase.

"The Respondent No 10 (Edelweiss Asset Reconstruction Company) is ...