RERA: Karnataka Excludes On-going Projects with 60% Completion

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Real Estate Regulatory Act (RERA) 2016 is aimed at protecting the interests of home-buyers. However, in Karnataka, exclusion from RERA has been given to on-going projects that are 60% above completion or where the sale deeds have been executed. The move has agitated the home-buyers who feel that subjectivity in assessing the completion will enable developers to manipulate the provisions of Real Estate Regulatory and Development Act.

According to real estate experts in Karnataka, there are no clear guidelines to determine the stage of completion of a project. It is left to the builders who may modify these according to their interests. Ideally there should be an audit mechanism in place by RERA itself to create transparency in accessing the stage of completion. But, there’s nothing of that sort and this has created frustration amongst home buyers who are stuck with developers over completion and possession of their flats.

The final notification of rules under RERA in Karnataka is still not out. And the complete picture will be clear only once all provisions are put on the table. The Real Estate Regulatory Act 2016 was passed in the Parliament to ensure timely completion of residential and commercial projects across India and greater transparency in real-estate transactions. The RERA act has not been implemented in all states as yet. Although more and more states are adopting RERA, but with certain modifications and exclusions. According to the Real Estate (Regulation & Development) Act 2016 that within 6 months of enforcement of RERA, the state governments must gear up to carry out its provision and make rules for its effective implementation. UP was the first state to come up with its rules in October 2016.