Updated | July 9, 2017 12:36 IST
Even though Karnataka has notified the draft rules at first like some states last year, it delayed the implementation of rare because of prolonged confusion and discussions. The Karnataka government has approved the final rules of RERA, which are framed on the lines of Rajasthan and Gujarat followed by adopting the Central law, largely.
Amid many questions that Siddharamaiah led Congress government will deprive the possible benefits of RERA, finally, the State Government has passed the bill on Wednesday evening. The cabinet made an exemption to the real estate projects which are 60% completed or even more. The remaining projects will come under the rule’s purview of RERA. On this, a Gazette notification will be issued within a week.
Karnataka Law Minister, T Jayachander is wanted to consider the guidance value as base value while estimating the project cost. RERA is an act, which is directed to benefit homebuyers and bring transparency in the transactions. It regulates the exorbitant cost of sales on realty projects.
Here are the framed rules of Karnataka under RERA,
1 .The developers have to deposit 70% of deposits collected from the buyers in a separate bank account. In case of ongoing projects, they’ve to deposit 70% unused funds.
2 . The projects with the plot size of min.500sq.mt. or eight apartments shall register with regulatory authorities.
3 . In case of delays, both buyers and developers have to pay the same penal interest of SBI’ Marginal cost of Lending rate plus 2%.
4 . For structural defects, the builders are liable for five years.
5 . If the developers violate the rules, they will be imprisoned for three years whereas, in the case of agents, it is for one year.
BJP Leader and Former Law Minister, Suresh Kumar took to the Twitter and anticipated that the Karnataka government will not water down the rules of RERA.
Keywords: RERA, Karnataka Government RERA approves, Siddharamaiah cabinet passes RERA, Real Estate Regulatory Authority
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