THIRUVANANTHAPURAM: Landowners engaged in illegal plot development activities will face the heat. The Kerala Real Estate Regulatory Authority (K-RERA) has initiated action against plot development projects that have not obtained approval from the local self-government and the regulatory authority. As per the state government’s building rules, all plot development projects have to obtain development permits from the local authority. Plot development projects with a land area exceeding 500 sq m should obtain registration from the K-RERA as well.
K-RERA chairman P H Kurian said illegal plot development is rampant in the state. Of the total 855 projects registered with the authority, only 20 are plot development projects. “We’ve received complaints from customers who invested in unregistered projects. These projects neither have K-RERA registration nor a development permit from the LSG. The authority has sent show-cause notice to the promoters. The hearing on the petition will begin only after the registration,” he said.
The authority has now asked the Local Self-Government Department to issue a direction to local bodies for the strict implementation of building rules on plot development.
Kurian warned land owners who assign the whole task of property sale with real estate agents. “They should ensure that mandatory sanctions are obtained. As per the law, penal action is to be taken against the land owner, not intermediaries. The authority can impose a fine up to 10 per cent of the project cost in such cases,” he said.
Customers, both home buyers and entrepreneurs, are also advised against investing in projects that do not have a development permit from the LSG and K-RERA registration, if applicable. “It will be a cumbersome task for buyers who invested in unregistered projects to get legal remedy for breach of promise by the promoter. The K-RERA can hear the petition only after coercing the builder to obtain registration. It will take time,” he said.
Promoters who do not have ownership of the project land should enter into a registered joint development agreement with the land owner. A copy of the agreement should be submitted along with the application for registration with K-RERA.
Registration mandatory
All plot development projects in rural and urban areas should obtain development permits from the LSG
All projects exceeding 500 sq m land should obtain K-RERA registration
Buyers should insist on LSG permit and K-RERA registration
Landowners will face legal action for non-registration, not their real estate agents