Despite the Real Estate (Regulation and Development) Act (RERA) being in force in Karnataka for over seven and a half years, concerns about its ineffective implementation are growing louder by the day. Sources said that this situation is highlighting the ineffectiveness of K-RERA in Karnataka.
Organisations striving for proper enforcement of RERA are alleging that although projects are registered with the authority, builders often disregard regulations, merely registering projects for formality’s sake and proceeding with construction as they please.
According to data published on the K-RERA website, only 65% of the registered housing projects are currently under construction. As of September 10, there are 6,944 registered housing projects in the state, but construction is ongoing in just 4,543 of them. The remaining 2,401 projects have either stalled or are in a state of distress. Many of these projects belong to popular builders and developers.
In Bengaluru, about 225 housing projects, accounting for 39,908 flats, are currently stalled for various reasons such as financial troubles, fund mismanagement, legal disputes, land acquisition issues, or pending approvals from competent authorities.
As per RERA rules, builders are required to submit quarterly progress reports and financial details for their registered projects. However, most builders are failing to comply.
Even after issuing several notices, K-RERA receives little to no response from developers. Moreover, the authority does not conduct physical inspections or enquiries into stalled projects to understand the issues. In the history of K-RERA, there is no instance where action has been taken against a builder. This has led developers to treat the authority lightly, claim advocacy groups.
According to a survey conducted by real estate firm Prop Equity, around five lakh housing projects are stalled across 44 major cities in India. The highest number of stalled projects is in Greater Noida, with 74,645 flats, followed by Thane (57,520 flats) and Gurugram (52,509 flats). Mumbai and Bengaluru rank fourth and fifth, with 37,883 and 39,908 flats, respectively.
As per the Karnataka Real Estate Development and Regulation Act, all housing projects in the state must be registered; however, many builders are not adhering to this rule. Complaints have been filed with K-RERA regarding 1,050 unregistered housing projects, which are considered illegal.
In most cases, the authority has merely issued notices without taking any decisive action, leading developers to largely ignore these warnings.
MS Shankar, Coordinator, EPC, alleged, “K-RERA is not functioning effectively in the state. Many builders are failing to complete housing projects on time, leaving homebuyers in financial distress. People who have invested in these projects, often through loans, are now regretting their decision. The authority must take strict action against builders and developers who fail to complete projects within the stipulated time frame.”
Source Homevior.in
