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Despite Karnataka Government intention to ensure #RERA Act is implemented in its letter and spirit the Karnataka Real Estate Regulatory Authority (K-RERA) are not carrying out their responsibilities and functions as per the provisions of the ACT. The K RERA found to be much lenient in handling defaulted/unscrupulous builders and project which has made this historical Act to feel like toothless and a paper tiger.

The intent of this Act was to regulate the Real Estate Industry with transparency and accountability, which was hither to missing prior to enactment of this ACT. This Act is expected to take the relationship between the Homebuyers and developers to the new level by ensuring completion of the projects within committed timelines and the Regulatory Authority were expected to keep a close track and intervene before it could get in to delay and litigation. The Regulatory Authority have failed in their responsibility and the trust level between the Homebuyers and Developers have soared and are again back to square one of pre RERA condition which will definitely impact the development of the Real Estate Industry.

I. Sir, as per K RERA web page details as on 19th May 2021 there are, a)	Applications applied for Registration			- 4979 projects* b)	Applications Approved for Registration 		   - 4122 projects* c)	Applications under process for Registration		- 0591 projects* 	d)	Application for third party Transfer      		- 0021 projects*

II. Among the approved for Registration 4122 projects there are,
 * No Transparency on the project’s wise details for above data and the same are not available for public view in the Karnataka RERA website.

e)	Completion date expired projects (either not completed the construction or applied for extension) 					: 739* projects* f)	Applied for project Completion (this need to be duly verified and allowed possession to the buyers)			   	: 946 projects g)	Extension for project completion date applications approved – 235* h)	Extension for project completion date applications under process – 241*


 * No Transparency on the project’s wise details for above data and the same are not available for public view in the Karnataka RERA website along with the reasons that were considered for approval of project extension as per proviso of section 6.

III. Sir as far as complaints, judgements, award of revenue recovery certificate for refund, executions of the orders, the status is as under:

i)	Total complaints registered for adjudication		- 5679* j)	Complaints disposed/orders awarded			       - 2906* k)	Complaints heard and Posted for orders		       - 0106* l)	Complaints under scrutiny for acceptance	    	- 0577* m)	Complaints under process				           - 0324* n)	Complaints under hearing/enquiry			        - 1756* o)	Award of revenue recovery certificate for refund 	- 0523 p)	Revenue recovery certificate recovered			   - 0010


 * No Transparency for above data and are not available for public view in the Karnataka RERA website including the copies of judgements.https://rera.karnataka.gov.in

1.	The dilutions made in Karnataka RERA Rules must be removed as per the Land mark Mumbai High Court Judgement dated 17-12-2017, and also as per various advice from Union Government as per the provisions of RERA Act. The details of RERA ACT dilutions by way of Rules, that are required to be repealed as per Annexure-1 have been submitted a long back and regret there is no update.

2.	Project Applied for completion: There is an urgent need to ensure the project completion as per the provisions of RERA ACT which stipulates completion of all development works (External and internal) and received Occupancy Certificate before allowing possession to the buyers and conveyance of common areas to the association of allottees of the project. Till today, there is no regulations/guidelines to ensure compliance while there have been 946 projects applied for completion process, as on 19th May 2021

3.	Indiscriminate decision – Extension of RERA Registered projects u/s 6Real Estate (Regulation and Development) Act, 2016

In case the promoter establishes and the authority is convinced that there were compelling circumstances and reasons for the promoter in failing to complete the project during the stipulated time, the authority shall have to examine as to whether there were exceptional circumstances due to which the promoter failed to complete the project. Such an assessment has to be done by the authority on case-to-case basis and exercise its discretion to advance the purpose and object of RERA by balancing rights of both, the promoter and the allottee. The compelling reasons that is documented in writing while granting the extension is not available in the website of the Authority maintained which is affecting the very purpose of enactment of the ACT – Transparency and Accountability. There have been 235 applications for extensions approved and 241 applications under process, as on 19th May 2021.

4.	The first Interim K-RERA Authority (who was also Secretary to Housing Department) had written to Revenue Secretary asking him to instruct the Inspector General of Registration and Stamps to see that RERA Registration Number is compulsorily mentioned in all first-time sale deeds of units (apartment/house/plot) of projects. The same is not yet been implemented while registering sale deeds at office of the Sub-registrars. This is in force in most of the states. The recent guideline, from Odisha Real Estate Authority dated 14th March 2019 is attached as Annexure – 2

5.	Lapsed RERA Registration: K-RERA has failed in ensuring the project is completed as per completion date, the date by which the Builders, undertakes to complete the project, by completing the external and internal development works is as stated voluntarily by the promoter during his application for RERA Registration which is duly reckoned considering all aspects which is within the control of the promoters – Sanctioned plans, permissions, approvals, manpower, sources of fund, liquidity, Marketing, etc.There have been 739 lapsed RERA Registered projects as on 19th May 2021, for over several months for which no action is initiated, and the development work is either abandoned or still in progress.

6.	Unregistered Projects:

There are many unregistered projects in which Home buyers have invested their hard-earned money and some promoters are not bothered about RERA and few are absconding. It is necessary to take criminal action on certain promoters who have cheated thousands of homebuyers. A task force was suggested during Mr. Kapil Mohan’s regime and for this it is necessary to have sufficient police personnel under deputation to RERA to support the Authorities in investigation. There are 1044 unregistered projects as on 19th May 2021.

7.	Refund- Execution of orders:

There are many orders issued by Adjudicating Officer of RERA on the promoters asking them to pay the compensations to the complainants (Homebuyers) under section 12, 14, 18 and 19 of RERA Acts. All most cent percent such orders are not honoured by the promoters and such orders not honoured by promoters are forwarded to the District Collectors for effecting recovery through Revenue Recovery process.

Refund of money along with the applicable interest and compensation, if any payable by the promoter in terms of the act or the rules shall be payable by the promoter to the allottee within sixty days from the date on which such refund becomes due. (Refer Karnataka Rera Rules 17)

It seems without any further developments on refund of money, that the Karnataka Real Estate Regulatory Authority have washed up their hands and gave up their responsibility just by writing few letters to Revenue secretary and others, without taking any further initiatives to resolve the important feature of “Refund” as per its timeline without enforcing relevant sections of RERA such as 63 and 64 to resolve the Refund /recovery and enforcement of RERA orders.

8.Government of Karnataka, to convene the meeting of stake holders along with Insurance firms to discuss and to notify guidelines to KRERA Authorities, to enforce RERA Section 16. (1) The promoter shall obtain all such insurances as may be notified by the Appropriate Government, including but not limited to insurance in respect of

(i) title of the land and building as a part of the real estate project; and (ii) construction of the real estate project.

9.	Inconsistency with RERA and Local ACTS:

The provisions of RERA Act shall have overriding effect, notwithstanding anything inconsistent therewith contained in any other laws for the time being in force. In view of the provisions of section 89 of RERA Act, certain provisions/definitions/procedures of existing State Acts related to Real Estate Development Activities must be changed to synchronise them with RERA Act.

To effectively implement and enforce RERA in Karnataka, certain provisions/ definitions/procedures of existing State ACTS related to Real Estate Development activities must be changed to synchronise them with RERA Act and it is requested to constitute a Committee / Task force, comprising of bureaucrats and officials from various Karnataka Government Departments -: Housing, Revenue, Co-operative, Registration & Stamps Department, Law, Urban Development Department, Bangalore Development Department, Home Department, K-RERA Authority, Homebuyers Associations, Activists, FPCE, etc. to work in sync with time bound manner to come out with suggestions and action plan to implement and enforce RERA in Karnataka.

The top-4 inconsistency that are required to address are:

(i)	Issue of “Occupancy certificate”.

As per RERA act only upon receipt of occupancy certificate the possession of the unit shall have to be given to allottees for possession and the term occupancy certificate is explained as "occupancy certificate" means ‘the occupancy certificate, or such other certificate by whatever name called, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation and electricity’.

It is observed that presently the issuance of Occupancy Certificate by BBMP / BDA is not in consonance with RERA Act and Multi story apartment projects, Layouts, villas, sanctioned by BMRDA and other authorities are also have to be covered for issuance of Occupancy certificate as per the provision of ACT. (ii)	Formation of Allottees Association and conveyance of common areas to the Association of Allottees,

As per section 11(4)(e) of RERA act formation of Association of Allottees is necessary for all Real Estate projects of apartments/plots/buildings so as to enable the promoter to handover the undivided title of common area properties and amenities of the project to the Association of Allottees as per section 17(1) & (2) of RERA Act. In the absence of clarity on section 17 of RERA Act with the provisions of unimplemented Act (for 45 years)- KAOA, 1972, it is necessary to Government of Karnataka to give clear instructions on formation of Association of Allottees for apartment projects. As on today, there is no legally backed process for formation of Association of Allottees of apartment projects. The same is the situation on forming Association of Allottees of projects of layouts of plots and buildings.

(iii)	Registration of sale agreement Rera section 13. (1) A promoter shall not accept a sum more than ten per cent of the cost of the apartment, plot, or building as the case may be, as an advance payment or an application fee, from a person without first entering into a written agreement for sale with such person and register the said agreement for sale, under any law for the time being in force.

(iv)	Refund of money along with the applicable intrest and compensation within sixty days from the date on which such refund becomes due.

It is very much necessary to sensitise the revenue officials like Tahsildars, Revenue Inspectors, Village Accountants and others on speeding up the recovery process on orders issued by RERA as per RERA timeline. A separate Recovery Wing be constituted with officials from Revenue and RERA to fasten this process to obtain refund as per the timeline of 60 days as mentioned in Karnataka RERA Rule No.17

We request you to take necessary steps for strengthening RERA implementation through the co-ordination of all concerned departments. The success of RERA implementation depends on the co-operation extended by various departments of the Government of Karnataka.

10.	WEB – Portal of Karnataka RERA:

Transparency is missing on the data available at the web page of Karnataka RERA and many important data project registration, details of project that were extended, quarterly update, judgement copies, etc need to be uploaded for accountability as per provisions of RERA Act.

11.	Karnataka Real Estate Appellate Tribunal: Data and transparency are missing on web portal on appeals filed, appeal heard, appeals pending, appeals disposed, Orders issued, judgement copies of orders, execution of orders, etc.

12.	Social media interactions are one of the important criteria to reach RERA to the Public and hear from Public. There is a stagnant Twitter handle (@officerera) created by Shri. Kapil Mohan, IAS, Interim K-RERA Chairman and Housing Secretary’s term and this handle should be utilised and everyday RERA update be communicated to reach the stake holders. Similar is the situation for the stagnant Facebook page RERA Karnataka created. We would kindly request you to nominate suitable executive to post, monitor and reply in the Twitter and Face book social media account meticulously.

M.S.Shankar General Secretary Forum for People's Collective Efforts (FPCE) Previously poularly known as Fight for RERA.