02, August, 2017
From now, no unregistered project can advertise or sell flats
Less than 800 real estate projects were registered with the Real Estate Regulatory Authority (RERA) on Monday, the deadline for builders to do so. This against an estimate of over 4,000 projects to be registered with RERA in the state, implying a compliance rate of a mere 20%.
As per law, the projects that have missed the deadline are liable to a penalty amounting to ₹10,000 every day till they register with RERA. However, Kapil Mohan, Principal Secretary, Housing Department, said that the focus was on getting all projects registered, rather than penalising them. “We will conduct outreach projects at the district level to get realty projects registered with us,” he said.
However, starting Tuesday, no unregistered project can advertise in any media or carry out sale of any flats till the project is registered with RERA.
Mr. Mohan said that while they were ready to consider a delayed registration, violation of advertising and sale rules prior to registration will be acted upon strictly. “We will issue notices starting August 1 for unregistered projects advertising or selling flats,” he warned.
The realty sector, however, is still making a strong case for an extension of deadline for registration.
Suresh Hari, secretary, CREDAI-Bengaluru Chapter, said that there have been several issues with the RERA website including a limited 5 MB data allotted for uploading all relevant project documents which he said was clearly insufficient.
“Goa has extended the deadline by another three months, which indicate that the State government’s argument that the deadline was part of the RERA Act, 2016 and hence could not be changed by the State, was wrong,” he said.
Loopholes still remain
As part of registering their projects with RERA the project promoters need to submit a copy of their draft sale agreements and sale deeds. RERA prescribes a common format for the agreement and deed, which is yet to be notified by the housing department.
“Draft sale deed and agreement was part of the draft rules notified in October 2016. However, the final notification of these formats is yet to happen. This has given the builders an opportunity to continue with their unilateral agreement, hurting the interests of home buyers,” said M.S. Shankar, for Fight for RERA – Karnataka Chapter.