It seems like Karnataka state government has been consuming too much time for notifying their respective RERA norms. During this transition period, the market conjecture is revolving around whether the state law will protect buyers’ rights who are investing in new development or who have already invested in any existing project. Buyers invested in existing realty units are not definite about the projection of their rights with the Real Estate (Regulation and Development) Act, 2016 or RERA implementation.
Despite union government’s repetitive compulsion states failed to submit their RERA rules by April 30, though RERA came into action on its scheduled time i.e. on May 1, 2017. Again the authority gave another 3 months’ period buffer time to the states that have not finalized their rules. Meanwhile, 18 states and UTS have submitted their RERA rules. Karnataka was the first state notifying the draft rules last year. But the state is yet to finalize its rules and form a state-level Regulatory Authority (RA). Now buyers apprehend that the housing department will dilute the rules to safeguard builders who have applied for project occupancy certificate or part of completion certificate and accordingly those projects will be shielded. They think that the state will nod in the favor of builders as it’s getting pressurized by the builders’ lobby.
“Dilution of RERA rules and overdone delay in RERA implementation are taking the law behind time. Most of the states that have submitted their respective RERA norms either tempered the principle codes or didn’t establish a state regulatory authority to monitor states’ footsteps in order to process the RERA implementation,” -said West Bengal RERA expert Mr. Mahesh Somani
As per the leading property portal in Kolkata at least 8000 projects in Bengaluru are either delayed or getting interest charges under delay in possession. Government is delaying its RERA rules as it wants to facilitate the builders with applying occupancy and completion certificate. Homebuyers who have invested in the existing projects were left unsatisfied with the latest cabinet decision. They claimed that the decision was partial. Fight for RERA, a group of prospective homebuyers, indicted the state's Congress government of favoring developers and moving away from the basic RERA rules. They also speculate that during this interim period many illegal proceedings will bloom. They will meet the CM and ask him to direct all the sub-registers not to register properties without completion certificate or OC under RERA ambit. Similarly the planning area authorities and the local civic bodies should also be ordered to be dedicated and cautious while issuing certificates.
-Somani Realtors News Network