RERA rules get okay with rider

RERA rules get okay with rider

RERA rules get okay with rider
The State Cabinet on Wednesday approved the rules for the Real Estate (Regulation and Development) Act, 2017, with a rider that ongoing projects with 60% work completed will not come under the ambit of the legislation.

The Cabinet had thrice deferred notifying the Karnataka Real Estate (Regulation and Development) Rules, 2017, aimed at protecting consumers’ interests and enhancing transparency in the real estate sector. Though Parliament  passed RERA last year, it was not implemented in the state for want of rules.

Briefing reporters, Law Minister T B Jayachandra said, “We have retained most of the provisions in RERA. A relaxation is being given to projects wherein 60% work has been completed and sale deeds have already been executed by the builder. The Karnataka rules are being notified after studying the rules in other states,” Jayachandra said.

It is said that the government was under pressure from builders to exempt on going projects from the purview of the Act.

Asked who would certify that a project was 60% complete, Jayachandra said, “There will be clarity when the rules are notified. It will be done in two or three days,” he said.

Under RERA, developers are required to refund or  compensate buyers with interest on par with State Bank of India’s highest marginal cost of lending plus 2% within 45 days of default in handing over possession of the property.

The rules provide for compounding of punishment with imprisonment for violation of the order of Real Estate Appellate Tribunal for payment of 10% of project cost in case of developers and 10% of the cost of property purchased in case of allottees and agents. Compliance with reasons for delay is mandatory within 30 days of compounding. The rules also fix fees for registration of projects and real estate agents.

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