Request to keep cooperative societies out of RERA

Housing societies file writ petition with the HC appealing to exempt them from RERA. The State Government has brought cooperative societies also under its purview. The cooperative societies function according to the regulations of Cooperative Act 1959. The Cooperative Societies are non-profit based outfits, RERA does not apply to them.

As many as 14 housing societies, including the Karnataka State Employees Housing Society, have filed a writ petition with the High Court appealing to direct the State Government to exempt the housing societies to keep out of the purview of the Real Estate (Regulations and Development) Act 2016, reported Kannada Prabha.

The single judge bench comprising justice B S Patil heard the argument regarding the application and issued notices to secretaries of Union Law Department, Central Urban Development Department and chief secretaries of State Housing Department and State Cooperative Department. The hearing was adjourned.

RERA is actually an Act implemented by the Central Government. The State Government has accepted it and formulated its own rules and regulations. However, the State Government has brought cooperative societies also under its purview. But the cooperative societies function according to the regulations of Cooperative Act 1959. Hence RERA does not apply to cooperative societies says the application.

The Cooperative Societies are non-profit based outfits. Instead they develop layouts and distribute sites at  lower rates. Members pay amount in small installments. Hence RERA rules do not apply to them.  Bringing them under RERA is unconstitutional the application argues.