BENGALURU: In a move that has sent alarm bells ringing for real estate developers across the state, the Karnataka Real Estate Regulatory Authority (RERA) has just released the first list of building projects which are not approved by it, along with the names of the developers. The list, made public on its website (http://rera.karnataka.gov.in/) under the ‘Applications Rejected’ section, puts in jeopardy the housing projects of all the 20 developers whose names have been displayed.According to Section 5(1) (b) of the Real Estate Regulation and Development Authority Act, 2016, these firms are barred from taking up real estate projects in the state.
A flurry of activity was witnessed at the RERA office on K G Road with builders thronging the place in response to notices issued by the Authority. According to Kapil Mohan, Karnataka chairman of RERA, “We have already sent three notices to builders who are yet to register with us. The third notice makes it mandatory for them to be present at a public hearing to explain why they are yet to register with us. Thirty developers have been sent notices and they are here to present their case.”
As on date, 854 real estate projects across the state have been certified by the regulatory authority. “Applications of 619 others are being processed and 20 applications have been rejected,” Mohan said. Asked about the status of the developers who have been denied approval, he said, “They can appeal against it in the Karnataka Appellate Tribunal and then in the High Court.”
The reasons for denying a RERA certification to projects can be many, he explained. Builders have to provide four lists of certificates — Land Use (sale deed or joint development certificate, Katha,
encumbrance certificate, sanctioned plan); Engineering (NoC from Fire department, Karnataka State Pollution Control Board);
Accounting (report from the directors of the company, balance sheet, IT returns) and Town Planning certificates (building plan). “If the builder is unable to produce these records, they will not get certification from RERA,” he added.
Builders had time till July 31
The Centre’s RERA Act, 2016, which aims to bring about transparency in the real estate sector and protect home buyers, came into effect on May 1, 2017. State issued a gazette notification on its rules on July 11. It mandates registration of all projects built on 5,000 sqft or above.Developers had been asked to register all their projects by July 31.
Home buyers relieved
Thanks to RERA, individuals who have invested in houses can now expect refund of their investments in case of violations or breach of trust on the part of the developers. IT professional T Sandeep was the first person in the city to be refunded `9,00,064 from a builder after he lodged a complaint with RERA. “I had paid an initial amount for a 1,400 sqft house in Electronics City. Later, I changed my mind and wanted a refund.” Sandeep had pursued the builder for a year and made numerous calls. “I visited the office 10 times seeking a refund, but never got it,” he says. Finally, he approached RERA for justice and the money was paid to him in October this year. Sandeep has a word of caution for other property buyers. “I paid the deposit since the person was a reputed builder. I think all who invest in property need to take care that the builder has registered under RERA. This will ensure justice in case anything goes wrong.” Three more individuals are set to get refunds of amounts ranging between Rs 5 lakh and Rs 7 lakh paid to separate builders in Marathahalli, Sadashivanagar and Koramangala after complaining to RERA.