Karnataka wants amendments to Real Estate Bill

Published: 04th August 2016 06:44 AM  |   Last Updated: 04th August 2016 06:44 AM   |  A+A-

BENGALURU: A clause in the Real Estate Bill that prevents promoters from accepting more than 10 per cent of the cost of a plot as an advance payment while starting a project, has forced the State to write to the Centre seeking an exemption for cooperative housing societies.

Cooperation and Sugar Minster Mahadev Prasad told reporters on Wednesday that  the Chief Minister had written to the Centre in this regard as the clause made it difficult to implement housing under the Karnataka Cooperative Societies Act, 1959. Under The Real Estate (Regulation and Development) Act, 2016, a promoter cannot accept more than 10 per cent of the cost of an apartment, plot or building as an advance payment or application fee without first entering into a written agreement for sale with such a person and register the  agreement for sale.

He said as housing societies developed plots, money was pooled by the people to purchase land. “With the new Bill, it will be difficult to proceed with the project with just 10 per cent from buyers. So we hope for an amendment, or else it will create a problem for us. We want this to stay under our own Act.”

Dues cleared by sugar factories

Referring to the dues owed by sugar factories to farmers, the minister said that 46 out of 66 sugar factories, which had to clear dues for the last three years, had already paid up. “We had issued a circular stating that those companies who paid the dues would be given exemption from road tax and purchase cess. After this, many companies cleared the dues. About `193 crore had to be paid to the farmers,” he said. The remaining 20 factories who have not cleared the dues will not be given the exemption, he added.

A shortfall in the production of sugarcane is expected this year. “We produced 376 lakh tonnes of sugarcane last year. This year, we are expecting only 300 lakh tonnes and the factories have to manage with this,” Prasad added.

Dasara meeting

Chief Minister Siddaramaiah will chair a high-level meeting on Thursday to discuss the modalities for the Dasara festival in Mysuru. 

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