Karnataka's weak RERA serves little purpose if it isn't pro-people
- Karnataka has implemented the Real Estate Regulatory Act (RERA) after much delay
- However, the act seems more geared to give builders loopholes, than helping customers
FollowThe State Cabinet has finally approved the much anticipated Real Estate Regulatory Act (RERA) 2016. It was in May last year that the Union Government had ordered RERA to be implemented all over the country. Â
The Central Government had instructed that the states could formulate their own regulations, in compliance with Centre's Act. Karnataka was among the first states that formulated the draft regulations. But in finalising and implementing it, the State has delayed and fallen behind.Â
Suspecting a role of the real estate lobby in the delay, several civic bodies had expressed their concerns about the State Government implementing RERA. After three months' delay the State Cabinet approved the proposal to table it. However, at the outset, complaints were expressed that Karnataka's RERA has been weakened. Instead of being consumer friendly, it is more favourable to builders. But the Law Minister says the State has adopted Gujarat and Rajasthan's model in whole. The point to be noted here is that the Gujarat and Rajasthan models are also more developer friendly than consumer friendly.
For example, in Maharashtra's regulations, a provision has been made for parking lots in open spaces within the limits of the project. Such a provision is in gross violation of the intentions of the RERA Act. Both Madhya Pradesh and Gujarat also have made similar provisions. All those governments have also kept projects declared prior to November 2016 out of bounds of the Act. Karnataka too has attempted the same.
The State government has decided to keep all projects that are 60 per cent completed or with sales registered, out of bounds of the Act. This will be a big boon for developers. In reality, whatever the stage of implementation, real estate builders and house building agencies lure consumers offering rebates and other gifts and show the project as 60 per cent completed or sales registered. That way they will stay out of the Act. This will definitely be a big blow to the intention of the Act.
Another major issue is that there is no mention of projects that do not have occupancy certificates. In major real estate constructions, occupancy certificates are not obtained because that requires teh following of several norms, and in majority of cases there aere deviations. Keeping all such projects out of bounds of the Act will definitely be in detrimental to the interests of the customers.Â
The developers or builders, who are ever so willing to forego following regulations, will further get opportunities to cheat customers and escape the bounds of the Act. In this context, there is a need for a strong RERA in a State, which attracts global attention in real estate. Safeguarding the interest of the consumers is essential.Â
The Act should be made more pro-people and pro-justice and be strong. The government should know that people want an Act that safeguards them and not a weak pro-developer one.
(This article originally appeared in Kannada Prabha)
