RERA notification promising for consumers: CREDAI Bengaluru

The Bangaluru arm of the apex body for the private real estate developers association, Confederation of Real Estate Developers’ Association of India (CREDAI), has clarified that the RERA notifications brought in by the Karnataka state government are in the interest of homebuyers and would not favour the developer community. In a press conference held in Bengaluru, the president of CREDAI Bengaluru, Ashish Puravankara, asserted that RERA made a balancing act between the buyer and promoter and explained its implementation and the impact on existing and upcoming projects. He stated that it would have been further effective if the Karnataka Government’s notification had lowered the threshold of the plot area that came under the Act to 100 -150 Sq meter as against the prevailing 500 Sq meter as that would have helped check the deviations happening in the segment. He further clarified that the Government has taken steps to ensure that ongoing projects are brought under the ambit of RERA. According to the Karnataka Government notification, projects that have completed 60 per cent execution of sale deeds need not make the application to the regulatory authority. “It is to be noted here that sale deeds are executed only after the projects are completed, which is in line with the Act”, said Ashish Puravankara. Likewise, layouts that have handed over charge of civic infrastructure to the local authorities are rightfully exempted as such handing over happens only after the full completion of the project, he added. “The same is applicable to exemption of apartments that have handed over the maintenance of the common areas to the residents’ associations as such projects are completed and mostly occupied too.” The notification also exempts projects that have applied for occupancy certificate (OC) as the same is applied only when the project is completed. In the case of projects that have received partial OC, the exemption is accorded only to that phase which has received the OC. Stating that all other projects that did not fall in the above categories will come under the purview of RERA, Shankar Sastri, President, CREDAI Karnataka said, “The government of Karnataka has meticulously notified the Act in letter and spirit as compared to some other States.” While acknowledging that the RERA is stringent on several issues, bringing strict compliance on the part of developers as well as laying pressure to comply with multiple guidelines, CREDAI Bengaluru still welcomed the move “as it addresses the interests of buyers.”