RERA-DILUTION- A PRESS REPORT


The Real Estate (Regulation and Development) Act (RERA), which was notified on July 6 by the state cabinet and implemented on July 10, has now come in the line of fire from experts and home buyers showing reservations to the government’s notification and threatening to approach the Supreme Court over the issue.

MS Shankar, Convener, Fight for RERA (Karnataka Chapter), said, “The Act says all the projects that have not received the occupancy and completion certificates (OC/CC) shall come under the purview of RERA but Karnataka has excluded them with an explanation which goes against the spirit of the Act. Projects where development works have been completed and certificated by a ‘competent agency’, and where 60 percent of sale or lease is completed are excluded. There is no clarification given on who this ‘competent agency’ is. It is presumed it is builders, architects or engineers.”

According to the representatives of the group, by excluding projects where the sale deed of 60 per cent is completed, the rights available to consumers under RERA Act to complain about any structural defects within 5 years has been snatched away.

In addition, deviation on construction apart from the sanctioned plan, delays and non-issuance of occupancy and completion certificates for those projects which are excluded are not protected under RERA.

Members of Fight for RERA, the group that has threatened to approach the apex court against the way the federal rule has been twisted by various state governments, have alleged that the rules not only help private builders but also protect Bangalore Development Authority and Karnataka Housing Board that have failed to deliver on their schemes at various levels.

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