Advertisement
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Private equity has played a significant role in shaping Indi...
Luxury real estate is one of the most talked-about segments ...
Airports play a much bigger role than just enabling travel -...
Homebuyers in Karnataka are urging the Karnataka Real Estate Regulatory Authority (K-RERA) to introduce structured project closure guidelines to prevent delays in housing projects. Unlike Odisha, which mandates developers to retain 1% of project costs for five years post-occupancy to cover defects, Karnataka lacks a similar policy, leading to prolonged incomplete projects and ownership disputes. The Karnataka Home Buyers Forum has formally requested K-RERA to adopt Odisha's model, ensuring that developers fulfill commitments and complete projects on time. Advocates argue that such a policy would increase accountability, protect homebuyers, and bring transparency to the real estate sector.
Members of the Karnataka Home Buyers Forum have been actively urging the Karnataka Real Estate Regulatory Authority (K-RERA) to implement clear guidelines for the completion of housing projects, similar to those adopted by neighboring states like Odisha. They express concerns over numerous builders failing to complete housing projects on time, leading to prolonged hardships for homebuyers. Advertisement
In Karnataka, while promoters are mandated to register their projects under the Real Estate (Regulation and Development) Act, 2016, there is currently no explicit policy ensuring the timely completion of these projects. This regulatory gap has resulted in several incomplete projects, leaving homebuyers in a state of uncertainty. In contrast, states like Odisha have proactively addressed this issue by introducing structured project closure policies.
In November 2024, the Odisha Real Estate Regulatory Authority (ORERA) introduced a standardized project closure form for developers. This form mandates that 1% of the project cost be retained in the RERA-designated account for five years post the issuance of the occupancy certificate. These retained funds are specifically earmarked to address any structural defects or workmanship issues that may arise within this five-year period, thereby safeguarding the interests of homebuyers.
The absence of a similar project closure policy in Karnataka has led to significant challenges for homebuyers. For instance, many developers submit affidavits promising to hand over the undivided share of the title to registered associations. However, in reality, numerous builders fail to fulfill this commitment, leaving residents without proper ownership rights and facing bureaucratic hurdles.
The Karnataka Home Buyers Forum has been vocal about these issues. They argue that while K-RERA requires promoters to register their projects, it does not ensure that these projects reach completion. This lack of enforcement has resulted in numerous incomplete projects, causing prolonged hardships for residents. The forum has submitted letters to K-RERA authorities, urging them to implement a project closure policy akin to Odisha's, to ensure that promoters complete registered projects and uphold their commitments to homebuyers.
The situation in Karnataka underscores the pressing need for regulatory authorities to adopt comprehensive policies that ensure not just the initiation but also the completion of housing projects. Implementing a structured project closure policy, similar to Odisha's, could provide the necessary framework to hold developers accountable, protect homebuyers' interests, and promote transparency and efficiency in the real estate sector.
In conclusion, the proactive measures taken by ORERA serve as a commendable example for other states. By adopting similar policies, regulatory authorities can ensure that the real estate sector operates with greater accountability, thereby safeguarding the rights and investments of homebuyers.
Advertisement
Facebook
Whatsapp
