(rera.karnataka.gov.in) How to File Compliant against builders using Rera Act in Karnataka

How to File Compliant against builders using Rera Act in Karnataka @ rera.karnataka.gov.in

The Real Estate Regulation and Development Act (RERA) of 2016 is an Act which ensures that the real estate sector of Karnataka is regulated. It ensures that the promoters and the developers act ethically. Also, it protects the rights of the customers and ensures that they get justified treatment when purchasing apartments or plots.

Amendment of the Act

Recently, on Wednesday, the cabinet made a few amendments in the Act. However, the changes took too long to come as the people were awaiting this decision for long. But the Karnataka law minister Mr. TB Jayachandra said that these delays occurred because the government was discussion the implications.

So the amendment has brought several changes to the existing guidelines. We have made a list of the central guidelines which have changed and those that remain the same. See below.

Central guidelines

  • If there is any project whose sale deeds have been executed for 60 per cent of units then the Rera Act will not include them in its list.
  • Another type of project which has been exempted from the act is the one whose common areas have been handed over to the registered association and that which is done so by representation of majority allottees.
  • The punishments for non repayment are now limited to the payment of 10% of the cost (estimated) of the real estate project. Also, you will be set free if you are in custody for any offense related to the matter.
  • You will have to register for the Act. Even the fees are regulated. The fee for an individual applicant is between Rs. 25,000 and rs. 2 lakh whereas the fee for the property brokers (hailing from the states of Gujarat and Uttar Pradesh) is Rs. 10,000.
  • The state law mandates that the developers will have to follow guidance value which the authorities will decide and as such they will have to prepare the estimate project costs based on that guidance value.

Previously there was a rule according to which you had to mention the size of the apartment based on its carpet area and notify the same to the authorities. There is no change in this law.

Details of ongoing project

  • You will have to produce the original sanctioned plan along with its specifications and modifications thereafter. The layout plan is also mandatory to produce.
  • You have to provide the amount that is used for development along with the amount collected from the buyers. Furnish the balance money that is lying with the developers as additional items.
  • The status of the ongoing project is also to be notified to the authorities from time to time. Also mention to which extent the development of the project has completed.
  • Some of the details in the ongoing project’s information are – the status of the project at the time of applying, the work that is pending. Before submitting this information, verify them from working architects, chartered accountants and engineers.

Overview of RERA

Some of the things that this law asks of the real estate marketers –

  • If the plot size is a minimum of 500 square meters then it has to be registered with the regulatory authorities.
  • In case there is any delay in operations complying with the Act, then both the buyer as well as the developer will have to pay a penalty interest of 2% of SBI’s Marginal Cost of Lending Rate.
  • If there is any structural defect in the apartment then the developer shall be liable for it – but only for five years.

These are some of the laws that were pre-existing before the amendment. Most of these have not been changed but the Act is now less stringent towards the jail and imprisonment of the developers and the brokers.

How to file complaint under RERA?

  • Go to this page http://rera.karnataka.gov.in/home and click on ‘Complaint Registration’ which is situated at the bottom right corner of the page. Or you can directly go to the page using this link – http://rera.karnataka.gov.in/complaintForm
  • After creating this page, enter your login credentials under the ‘Account’ option situated on the left hand side of the page.
  • On this page complete all the details that are required. The star marked fields cannot be left empty. You have to also attach the supporting documents in PDF or JPEG format (file size up to 1MB).
  • After that click on ‘payment’ and pay the fee of Rs. 1000 per complaint. The payment can be either conducted via NEFT or RTGS or Khajane2 Challan. You have to select the mode of payment. If you have chosen NEFT or RTGS you have to attach the online payment receipt.
  • After that check all the declarations and then submit the complaint. Now the builder and you will get a notice from the authority to present your views. After that the authority will give the verdict.

Karnataka took the first step

Karnataka Housing Minister Mr. M Krishnappa had previously said that there could be some delays in approval of RERA. But finally it has got the approval and the further changes that were added, have also found their way into the Act.

Karnataka is the first of the states that notified the draft rules for the real estate sector last year. They have set an example that the other states could follow and implement. However, it dragged its feet towards the end before approving the final set of rules. But now the state-level regulatory authority has been set up. Mr. Jayachandra also mentioned that within the next 3-4 days, the state shall issue a Gazette notification for the same.

How will this affect the customers?

The customers are the prime benefactors of this last leg of rules. It will help them get the best benefits out of purchasing land. The clear set of rules will ensure that both parties are clear on where their rights stand where law and order is concerned.

RERA has altered the way the masses are treated in Karnataka in the real estate sector. It is primarily consumer protecting act to ensure that there is equality and morality on all grounds of the transactions conducted in the real estate.

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