Homebuyers may stand to benefit from the provisions of the Real Estate (Regulation & Development) Act notified by the Karnataka government on Monday. It, among other things, brings a huge number of ongoing projects under the purview of the law.
The government had come under criticism for the draft rules published last week which said ongoing projects, where 60% development work had been completed or 60% of the apartments/houses/plots had been registered and executed, would not come under the purview of the Act.
If the OC has already been applied for, the building is exempt from RERA regulations.
Buyers felt that the provision gave a leeway to the developers to slip out and there was also confusion as to how a consensus could be reached on such an arbitrary number.
That part seems to have been addressed. As per the notification published on Monday, only ongoing projects “where all development works have been completed as per the Act and certified by the competent agency“are exempted from RERA. The 60% sale lease deed provision stays.
“We were not expecting this, “Shriram Properties managing director Murali said, when asked about his response about the rules. Sobha managing director JC Sharma said though the law is customer friendly, any retrospective law is bad and goes against natural justice. Most of my ongoing projects, where I have not applied for an occupancy certificate, will come under RERA, “Sharma said.
According to the notification, a builder can apply for an OC only if it has been certified by a competent agency -in this case by an architect. If the OC has already been applied for, the building is exempt from RERA regulations. “The rules are stringent because builders have to get in place waterlines, electricity lines and other things before applying for OC, “Suhail Rehman, director of Asse Builders, said.
E Suhail Ahmed, advocate and legal consultant at RERA Consultants, said the rules are not much of a dilution from the central legislation. “They are almost in line with the Act as far as its application to ongoing projects is concerned, “Ahmed said. If a project comes under RERA, buyers would be in a position to file a complaint in case there is a delay or if the building has not gone by the approved plans.
(This article was originally published in The Times of India)