BENGALURU: The Karnataka government has notified the Real Estate Regulatory (Regulation and Development) Act on Monday making it mandatory for all the builders to register with the regulator.
The Karnataka Real Estate (Regulation and Development) Rules, 2017 shall come into force from the date of their publication in the Official Gazette, said Kapil Mohan, principal secretary to the Karnataka's department of housing.
Last week, the Karnataka Cabinet had approved the Real Estate Regulatory (Regulation and Development) Act with a few changes, paving the way for the setting up of a regulator for the sector.
According to the Karnataka RERA Rules, the builders should disclose the size of the apartment based on carpet area. The rule also mentions that for ongoing projects that are yet to receive a completion certificate, the promoter shall within a period of three months of the application for registration of the project with the authority, deposit in a separate bank account, 70% of the amounts already realised from the buyers.
The Karnataka RERA Rules also state that the builders will need to furnish details of the past or ongoing litigations in relation to the real estate project on the real estate regulators' website. The rate of interest payable by the promoter to the allottee or by the allottee to the promoter, as the case may be, shall be the State Bank of India highest marginal cost of lending rate plus 2%.
It has done away with imprisonment and stated that on payment of 10% of the estimated cost of the real estate project, any person in custody in connection with that offence shall be set at liberty and no proceedings shall be instituted or continued against such person in any court.
The regulations does not contain harsh penal provisions; instead, the rules prescribe that the real estate regulator's orders will be enforced by the adjudicating offer or the authority or the appellate tribunal in the same manner as if it were a decree or the order of a principal civil court. If the authority itself is unable to execute the order, then it has to send it to the jurisdictional principal civil court seeking its execution.
The rules also provide for any amount due to any party before the authority to treat as Land Revenue (if any one fails to pay it), and recover it as provided in the Karnataka Land Revenue Act, 1964.