Residents being deprived of RERA benefits, says MP Rajeev Chandrasekhar in letter to CM Siddaramaiah

As per Sections 20 and 43 of RERA, the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal are to be established and incorporated by the State Government within a period of one year from the date on which RERA came into force i.e., within a period of one year from May 1, 2016.

To this effect, the State Government is also required to formulate rules. It is unfortunate that government of Karnataka has failed to notify the Rules, thereby, depriving the benefits of RERA to the residents of Karnataka; and also indefinitely delaying the commencement of the process of appointment of the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal.

MP Rajeev Chandrasekhar (who was also part of the select committees of Parliament - Real estate Regulatory bill), has been fighting to get the RERA implanted in Karnataka all along and has written to the state government to implement RERA in Karnataka.

So the MP has again written a follow up letter to his earlier letter citing the above reasons.

Dear Shri Siddaramaiah avare,

Sub: Enforcement of the Real Estate (Regulation and Development) Act, 2016 (“RERA”) in Karnataka.

Ref: My letter dated July 1, 2016, titled “Regarding the appointment of an Officer as a Regulatory Authority by the State Government of Karnataka for the interim period under

the Real Estate (Regulation and Development) Act, 2016”.

I write to you to regarding the inordinate delay by your government in notifying the Karnataka State Real Estate (Regulation and Development) Rules and the failure to constitute: (i) the Real Estate Regulatory Authority; and (ii) the Real Estate Appellate Tribunal. The Executive ought to have completed these activities by May 1, 2017.

You will no doubt be aware that RERA was enacted by the Parliament and received the assent of the His Excellency, the President of India on March 25, 2016. Most of the provisions of RERA, including Section 20, were brought into force on May 01, 2016. Among others, Section 20 of RERA required the State Government to designate any officer (preferably the Secretary, Department of Housing) as an interim regulatory authority until the constitution of permanent regulatory and appellate authorities. In this regard, I had as early as July 2016, addressed the letter above referenced, requesting you to appoint the Principal Secretary to the Department of Housing, Government of Karnataka, as the interim regulatory authority. Unfortunately, no action was initiated by your government, either regarding the interim authorities or as regards the permanent authorities.

As per Sections 20 and 43 of RERA, the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal are to be established and incorporated by the State Government within a period of one year from the date on which RERA came into force i.e., within a period of one year from May 1, 2016. To this effect, the State Government is also required to formulate rules. It is unfortunate that your government has failed to notify the Rules, thereby, depriving the benefits of RERA to the residents of Karnataka; and also thereby indefinitely delaying the commencement of the process of appointment of the Real Estate Regulatory Authority and the Real Estate Appellate Tribunal.

I urge you to comply with the statutory mandates of RERA and ensure that the Rules are notified after taking into consideration the suggestions and objections proffered by the civil society.

Further, in the interregnum, until the permanent Real Estate Regulatory Authority and the Real Estate Appellate Tribunal are constituted, I urge you to forthwith appoint an interim regulatory authority to implement the statutory mandates of RERA. I also urge you to notify, as an interim measure, an existing tribunal in the State of Karnataka, as the interim Appellate Tribunal under RERA.

There is no gainsaying the fact that RERA was enacted to curb malpractices in the real estate sector and to protect the interests of consumers. The real estate sector is in immediate need of regulation to ensure the welfare of the consumers at large. In such circumstances, the inaction on the part of your government is inexplicable as well as inexcusable. It is a failure of the government’s promise of upholding the rule of law. In this regard, I draw your attention to Article 256 of the Constitution of India, which casts an obligation on the Executive of every State to ensure compliance with laws made by the Parliament.

I draw your attention to the fact that many state governments have demonstrated alacrity in complying with RERA’s statutory mandates. Eighteen States have notified rules; nine States have appointed interim regulatory authorities; and three States have notified and constituted regulatory authorities.

Many have also established online portals as required under RERA. I see no reason why the people of Karnataka should continue to bear the brunt of practices prohibited under RERA and be rendered remediless due to the inaction of your government.

I therefore urge you to act in accordance with your constitutional obligations and initiate action for: (i) the notification of the Rules; (ii) immediate appointment of the Principal Secretary, Housing Department as the interim regulatory authority; and (iii) immediate notification of an existing Tribunal in the State of Karnataka as the interim Appellate Tribunal under RERA. I further urge you to immediately commence the process of establishing a permanent Real Estate

 

Regulatory Authority and a permanent Real Estate Appellate Tribunal in the State of Karnataka, thereby effectively enforce RERA in the State of Karnataka.

Sincerely,

RAJEEV CHANDRASEKHAR

 

 

(Rajeev Chandrasekhar is also the Chairman of Jupiter Capital, which has investments in Asianet News Media & Entertainment Pvt Ltd that publishes Asianet Newsable.)