Forum to move High Court against RERA exemption for half-complete projects

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Lanchamukta Karnataka Nirmana Vedike, a citizens’ forum fighting against corruption, says it will move the high court against the state government’s decision to exempt real estate projects that are 60% complete from registering under the Real Estate (Regulation and Development) Act. The exemption is said to affect around 17 lakh home buyers.

RERA mandates that all commercial and residential projects with over 500 square metres of land or eight apartments register under it. But the rules notified by the government earlier this month exempt projects that are 60% complete from registering under RERA.

At an interactive session held at Venkatappa Art Gallery auditorium on Sunday, the Vedike decided to go to the High Court of Karnataka seeking scrapping of the exemption given to builders.

The session, led by K V Dhananjay, advocate, Supreme Court, saw many home buyers speaking about how builders delay projects and make them wait. “Home buyers are very vulnerable, especially in a city like Bengaluru, known for its dynamic growth. Builders keep delaying projects. Sometimes they get the occupancy certificate (OC) for projects that are just 60% complete,” Dhananjay said. “It’s like saying you are a 60% human being.”

Nuggehalli Sridhar, a resident of Thanisandra, was allotted a 30×40 plot in Kempegowda Layout, which is located between Mysuru Road and Magadi Road. He paid around Rs 24 lakh last year but there are no facilities to speak of in the new residential colony. He wondered whether the Bangalore Development Authority (BDA), which has formed the layout, had registered under RERA. He said that about 5,000 people who had been allotted sites in the first phase of Kempegowda Layout saw no hope of the colony becoming habitable in the near future.

Subroto Chakravarthy, a resident of Thanisandra, bought an apartment with Sobha Developers. The builder provided him the OC without giving any amenities. “How can we go and live in a place which is not complete? The company has been delaying the project and when we question it, it says that since we have already received the OCs, what is the big hurry in moving in,” Chakravarthy said.

Dhananjay said: “It’s shameful that leading builders in the city have been taking advantage of RERA.”

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