For the second time, the State Cabinet has deferred its decision to notify the final rules for the Real Estate (Regulation and Development) Act (popularly called RERA).
Minister for Law and Parliamentary Affairs T.B. Jayachandra told presspersons after the Cabinet meeting on Thursday that the issue had been deferred as the Chief Secretary-led committee was still looking into the proposals. “They are studying the implementation of this Act in other States, and we will take up the issue of RERA in our next meeting,” he said.
- March 2016: RERA Bill passed by Parliament
- October 2016: Karnataka is among the first States to notify draft rules for the Act
- May 1, 2017: Karnataka misses the Centre-mandated deadline of issuing final RERA rules. Thirteen other States notify rules
- May 30, 2017: State Cabinet defers decision on notifying the final rules
Karnataka had missed the May 1 deadline for the notification of the final rules of RERA, which seeks to protect homebuyers through a bevy of regulations. Apart from setting stringent rules such as having approvals before the start of registration, the Act would see the formation of a Real Estate Regulatory Authority that will deliberate on complaints against builders within 60 days.
Barely four weeks ago the Cabinet had decided to defer the topic. M.S. Shankar, founder-member, Fight for RERA, said the government was delaying a decision on purpose. “During a meeting of stakeholders in November 2016 (less than a month after the draft rules were notified), the State government had said a committee will be set up to look into the suggestions. After that three secretaries have been changed, while there has been no progress with the committee. This government is delaying on purpose, and this amounts to back-stabbing homebuyers,” he said.
However, M. Krishnappa, Housing Minister, expressed confidence that a decision would be taken in the next meeting. “Barely 10 State have taken a decision on this. We expect the committee report by next week on the best way to implement the Act,” he said.
When asked if the inclusion of ongoing projects, which many RERA activists say is being contested by the real estate lobby, is the stumbling block to making a decision, Mr. Krishnappa said, “It is wrong to think that the government is buckling under any lobby about ongoing projects. We are only studying all the aspects.”
