The Apartment Owners Apex Association has warned of protracted agitation against the ‘pro-builder’ Real Estate (Regulation and Development) Bill of the Centre and the State government’s ordinance along similar lines.
Addressing a press conference here on Tuesday, association president V.K. Sankarankutty said while the ordinance empowered builders to divert up to 30 per cent of investors’ money after depositing 70 per cent to an escrow account for specific project, the Central government Bill allowed for diversion of up to 50 per of the funds. “The builder need not make any capital investment and is ensured of profit at the very outset. The formation of the real estate regulatory authority deprives investors of the right to seek legal remedy as builders can delay the proceedings of the authority,” he said.
V.S. Somanadhan, general secretary of the association, said the clauses in the Kerala Real Estate (Regulation and Development) Ordinance, 2015, were drawn up to help builders.
Legal advisor to the association Jacob Mathew Manalil said while previously builders had to bring in 20-30 per cent of the investment as capital, they no longer needed to contribute anything. Questioning the Central Bill and the State government ordinance, he said clauses allowing diversion of investors’ fund amounted to encroachment on the rights of the citizen.
“The ordinance also provide for investors to complete the project on their own if builders botch-up the project, which is a travesty of justice,” Mr. Manalil said.
Mr. Sankarankutty said there was no question of accepting such an ordinance. “Though the State had a Kerala Apartment Ownership Act, 1983, not a single building had been built in compliance with its provisions. Authorities are not even aware of the existence of such an Act and it is not clear whether it has been scrapped or not,” he said.
