BANGALURU: Karnataka Real Estate Regulatory Authority (RERA) that was formed more than two weeks has gone live with the state government launching the portal for registration.
In absence of any RERA portal since last two weeks builders have been struggling to register projects with state authority not accepting physical application for project proponents to register.
“All CREDAI (Bengaluru) members are quite aware of the July 31st deadline for RERA registration. In fact everyone has been in preparation for the same, from the day the Centre proclaimed RERA notification on May 1st 2016. Of course it would be helpful if the state government extends the deadline for registration of ongoing projects in the light of this,” said Ashish R. Puravankara MD, Puravankara Limited. Ashish is also president of CREDAI Bangalore chapter.
State Housing secretary Kapil Mohan said that the website is fully functional and they had already done test run by registering two builders. “It is an end to end solution where one can make payments too,” said Mohan to ET.
The Karnataka government has notified the Real Estate Regulatory (Regulation and Development) Act on July 10 making it mandatory for all the builders to register with the regulator.
“Only few days are left for registration. The launch of portal will now make the process speedy so that we can launch new projects, it will also help real estate market to resume to normalcy,” said JC Sharma Vice Chairman & Managing Director Sobha Developers.
Central government has given July end deadline to all state governments to go live with their portals and register projects.
“In spite of Central Government repeated reminders for early notification of RERA Rules and constitution of Regulatory Authority, the delayed notification of Karnataka RERA Rules on 10th July 2017 has not brought any breather either to developers or to consumers. The consumers were put into a lot of dilemma on ascertaining their Project eligibility under Karnataka RERA,” said M S Shankar – Convener, Fight for RERA Karnataka Chapter.
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 Government of Karnataka Department of Housing.
According to the Karnataka Real Estate (Regulation and Development) Rules states that the builders should disclose the size of the apartment based on carpet area. The rule also mentioned that for ongoing projects that are yet to receive completion certificate the promoter shall, within a period of three months of the application for registration of the project with the Authority, deposit in the separate bank account, seventy per cent of the amounts already realized from the buyers.
According to a report by property consultancy firm Knight Frank, RERA, adverse impact of demonetisation and unsold stock have crippled the real estate sector in Bangalore. Until recently recognised as one of the most resilient residential markets in the country, Bangalore is reeling under pressure today. However, things have started looking up slightly in 2017 and although the figures are still restrained, marginal improvements were observed in the number of new launches and sale.
The city’s residential market continued to be restrained in the first half of 2017, witnessing an increase of 5% in new launches and 4% in sales over the year-ago figures. Despite the improvement in the residential segment, the number of total launches was down 42% and sales 19% lower than a year ago.