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Karnataka RERA Enforcement Gets Hindered By Unregistered Housing Projects

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Karnataka RERA

The Karnataka Real Estate Regulatory Authority (RERA) is strictly regulating the developers, who are not complying with the new real estate norms. The RERA is currently facing a tough task while dealing with the unregistered housing projects, as it has no direct control over such projects. Various sources have provided information and confirmed that there are 1,294 unregistered projects across the Karnataka. And it is estimated that nearly over 800 projects from this total are in and around Bengaluru.

 

According to the Sunil Kumar, Secretary RERA Karnataka, the authority has no such direct control over the unregistered project, therefore RERA is coming down on the unregistered projects with all the possible legal means, and hence dealing with them is making it an elaborate process. The authority is depending on the sources, including advertisements and newspaper reports, complaints from buyers, web portals and official records of urban local bodies, in order to enumerate unregistered projects as there is no direct way. According to the experts, the number of unregistered projects could be much higher, if in case the mushrooming of the projects is considered.

 

There have been many notices that are being issued by the RERA to all the unregistered projects, while satisfactory explanations have been provided by the 488 project promoters and have been found to be exempt from the RERA Act. However, replies from 251 project promoters did not satisfied RERA officials and have been slapped with a second notice.

 

Regarding the third-party hearing by the adjudicating officer, the RERA officials have said that the project promoters would be called for the hearing and if found guilty they’ll be liable for punishment under Section 59 of RERA Act that includes a penalty up to 10% of project cost or imprisonment.

 

However, more than 500 unregistered projects have still not responded to the notice and RERA officials are devising a new plan of action against them. According to the Secretary RERA Karnataka, if the authority doesn’t get any satisfactory reply even after the third notice, then the matter would be forwarded to the RERA chairman, recommending the imposition of penalty.

 

So far none of the developer has been slapped with a penalty. RERA has reached the stage where no builder has been slapped with a penalty. RERA has reached the stage of issuing the third notice to 65 projects and the procedure is to be completed by March first week. According to Sunil Kumar, the first instance of imposition of penalty is expected next month, also the authority will ensure that the projects come under the RERA net.

 

The RERA Act was notified by the state government on July 10, 2017, since then the authority has registered 1,903 projects. Thousands of complaints by the home buyers have been received by RERA, and 22 orders have been passed by the adjudicating officer.

 

The project promoters had the deadline for registering themselves on or before July 31, 2017. As many of the developers had failed to do so, RERA has imposed a penalty. For a delay of a month, the builders had to pay 100% of the registration fee. And if continued in the second month then the penalty rises to 200%. The authority officials said that they have imposed the penalty up to 300%.

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