Karnataka RERA stops construction: Tips for Builders to save their projects

Karnataka RERA has put stay order on almost 542 ongoing projects as they were strict on permanent registration of projects. The projects were half done and were being developed under the provisional registration since last year. Now, it is worrisome situation for builders that whether they will get the permanent registration or not. But, it can be apprehended that builders under RERA rules shall get the permanent registration.

According to the notification issued by the RERA Karnataka on 1st April 2018, it was also predictable that 542 ongoing projects will face uncertainty. According to the notification, the builder should get the permanent approval before advertising and marketing the projects, signing any contract or accepting money from them. Karnataka  RERA is issuing permanent registration numbers to each of the property.

The RERA act came into effect on July 10, 2017, RERA Karnataka started implementing a process of issuing of automated provisional approval number to applicants who have just applied for the approval on website. Out of 2056 application processed by the authorities, 1466 are approved, 157 are under process and 52 are rejected. The rejected approvals were operating with the provisional approval. The introduction of permanent registration is hampering the almost completed or more than half completed projects.

There are certain RERA rules by which all the developers have to abide them and some of the import ones are as follows.

  1. Background verification of the seller should be checked.
  2. Risk analysis and financial study should be done.
  3. Always deal with trustworthy and well known investing firm.
  4. Demand for all the necessary documents and approvals like NOC, Sanctions etc.
  5. Appoint recognized real estate agent for hassle free marketing.
  6. Share the proper floor plan
  7. Do not divert the funds received.
  8. Do not make the false commitments and fulfill all the commitments made
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