In a major crackdown to further ensure the safety of homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has stepped up its efforts to crack down on unregistered real estate projects in the state, bringing to the fore the loopholes in the regulatory framework that have allowed some projects to escape the radar.<\/p>\n
This comes after a series of complaints and internal assessments showed that some residential projects in the state were operating without the required registration under the Real Estate (Regulation and Development) Act, 2016. According to the Act, any residential project that is above 500 square meters or has more than eight units needs to be registered with the regulatory body before it can be marketed or sold.<\/p>\n
However, there are systemic issues that have been pointed out as hindrances to effective enforcement. Firstly, the absence of smooth coordination between the local planning authority and the regulator is a significant issue. The local authority has the power to sanction plans for buildings or even issue an occupancy certificate without checking if the project is registered under RERA. This means that some projects have already advanced considerably before any issues with compliance are noticed.<\/p>\n
The second issue with regulation is in the context of property registration. Sale agreements can be formalized without making it mandatory to include the valid RERA registration number, which is a significant check that could otherwise prevent sales in non-compliant projects.<\/p>\n
K-RERA has reportedly sent notices to developers who are suspected of violating registration requirements and is also reviewing cases where developers have allegedly tried to launch new projects through different entities after being penalized in previous projects.<\/p>\n
Industry experts believe that the recent enforcement drive by the regulator indicates a more proactive approach to enforcement. Although Karnataka has been one of the more active states in terms of grievance redressal under RERA, the recent enforcement drive indicates that the monitoring of compliance is still a work in progress.<\/p>\n
The recent enforcement drive is a clear indication that homebuyers must now make it a point to check the RERA registration of a project. Projects that are not registered under RERA do not fall under the umbrella of the Act and therefore do not have much recourse in case of delays, structural issues, or financial irregularities.<\/p>\n
The recent enforcement drive is likely to ensure that the regulator and civic bodies work in tandem. Experts believe that incorporating RERA verification into planning approvals and property registrations would help close the loopholes that currently exist.<\/p>\n
As the real estate market in Karnataka continues to grow, the regulator\u2019s tough stand is likely to be a warning to developers who are not following the rules and a reassuring sign for homebuyers who want to see more transparency and accountability in property transactions.<\/p>\n","protected":false},"excerpt":{"rendered":"
In a major crackdown to further ensure the safety of homebuyers, the Karnataka Real Estate Regulatory Authority (K-RERA) has stepped up its efforts to crack down on unregistered real estate projects in the state, bringing to the fore the loopholes in the regulatory framework that have allowed some projects to escape the radar. This comes […]<\/p>\n","protected":false},"author":4,"featured_media":1279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-1278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-karnataka"],"yoast_head":"\n