The Karnataka Home Buyers Forum has called for the Real Estate Regulatory Authority (RERA) Karnataka to issue clear and comprehensive guidelines for project completion, similar to the regulations followed in states like Odisha. The forum’s members recently met Rakesh Singh, the newly appointed RERA Karnataka Chairman, urging him to release a project closure policy to ensure transparency and accountability in the completion of real estate projects.
Need for Clear Project Closure Guidelines
According to Dhananjaya Padmanabhachar, convener of the Karnataka Home Buyers Forum, no public circular or guidelines on project closure have been released by RERA Karnataka since 2017. “Promoters often submit affidavits stating they will hand over the undivided share of the property title to the registered association of allottees, but many fail to do so in reality. Despite this, RERA Karnataka is marking these projects as closed on its website,” Padmanabhachar pointed out.
The Odisha RERA has set a benchmark by issuing specific guidelines for promoters to submit certain documents after completing a project. Additionally, it ensures that a portion of the funds in the designated 70% RERA account is kept as security for five years to cover potential structural defects, as per Section 14(3) of the RERA Act. Homebuyers in Karnataka are demanding a similar approach to protect their interests.
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Transfer of Common Areas Delayed
Padmanabhachar also highlighted that many apartment lands are not being transferred to the flat owners’ association due to the absence of government directives. “We urge RERA Karnataka to release the Project Closure Policy notification promptly, so promoters can transfer common areas and land titles to the registered associations, as mandated by Section 17 of the RERA Act.”
Lack of Transparency in Promoter Reports
Ameya Usgaonkar, a homebuyer, emphasized the importance of quarterly financial reports by promoters, as required by the RERA Act. These reports provide a detailed breakdown of funds used for construction. However, Usgaonkar noted that RERA Karnataka has failed to enforce the submission and review of these reports, leading to a lack of accountability among promoters.
The forum members believe that project completion under RERA should occur only when both occupancy and completion certificates have been obtained, and the common areas have been transferred to the registered apartment owners’ association. Until then, the project remains incomplete. The Karnataka government and RERA-K have been criticized for issuing clean certificates to projects with partial Occupancy Certificates, which is in violation of the RERA Act and Supreme Court rulings.
The Karnataka Home Buyers Forum continues to push for more stringent regulations, urging the state government to follow the lead of Maharashtra and Odisha in implementing effective RERA policies.