RERA Karnataka-State all set to notify new real estate rules

RERA Karnataka-State all set to notify new real estate rules

The Karnataka government will notify the Real Estate (Regulation and Development) Act by 1st May 2017. This act aims at protecting consumers’ interests and enhances transparency in the real estate sector.

According to the state housing minister Mr. M. Krishnapa, the ministry will hold a meeting this week to finalize the draft rules and then will put it before the cabinet.

According to some home buyer’s associations, the implementation of the RERA Act may get delayed due to the shilly-shallying nature of the government in setting up the regulatory body. They also alleged that small builders including MLAs from Bangalore are pressurizing the government not to include certain rules prescribed by the Central government in the Karnataka RERA Act. They want the government to notify rules in such manner that the projects launched after the implementation of the Act should be considered under the ambit of the State's Act.

Ruling out the allegations, Mr. Rajeev Chawla, additional chief secretary to the housing department said, “Most of the procedures have been completed and we are in the last stage of notifying the draft rules for RERA Karnataka.” He also added that the government is bound to implement the undiluted real estate rules from 1st May 2017 and soon a devoted office will be established for the same.

Highlights of the Draft Rules

  • The rules will be applicable for every on-going and under-construction project
  • The developers will have to register under construction project with the regulatory authority within 3 months of the implementation of the Act
  • Developers will have to place 70% of the money collected from the buyer in an escrow account
  • Registration will mandatory for all commercial and residential real estate projects where the land is over 500sqm or includes eight apartments
  • Each phase will be considered as a stand-alone real estate project and the promoter will have to obtain the registration certificate for each phase
  • Flouting the rules will attract a penalty up to 10% of the project cost or imprisonment

The Central government implemented the RERA Act, on 1st May 2016, and asked all states to adopt it within six months.


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Old Comments :

    prahalad

    Whether the RERA is applicable to developers of plots(sites), only, those who are not into construction. What is the status of implementation of RERA in karnataka.

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