The newly-formed Kerala Real Estate Regulatory Authority (K-RERA) is set to establish ‘conciliation forums’ for ensuring speedy resolution of disputes that may arise between real estate developers and home buyers.
While the details are yet to be finalised, RERA chairman P.H. Kurian said here on Monday that the forums could have, in addition to the aggrieved parties, a representative of real estate forums such as the Confederation of Real Estate Developers’ Association of India (CREDAI), a trained conciliation officer assigned by K-RERA and a reputed NGO specialising in consumer protection in the sector.
It was expected that 20-30% of the disputes that arose between builders and buyers could be amicably settled by bringing the aggrieved parties to the negotiating table. And, depending on the number of cases, such forums could be set up at the district level if needed, Mr. Kurian said.
Section 32(g) of the Real Estate (Regulation and Development) Act, 2016, required State-level RERAs to facilitate ‘amicable conciliation of disputes between the promoters and the allottees (buyers) through dispute settlement forums set up by the consumer or promoter associations.”
Trained officers
K-RERA, which had a formal launch on January 1 this year, would take steps to post trained officers to guide the conciliation process, Mr. Kurian said.
By January-end, K-RERA hopes to appoint a retired district judge as adjudicating officer for handling compensation claims. An appellate authority also will be established soon for handling the appeals on K-RERA decisions.
Designed to protect consumer interests in the real estate sector and weed out fly-by-night operators and other malpractices, RERA requires mandatory registration of all real estate projects where the land area under development exceeds 500 square metres or the number of apartments being developed is more than eight inclusive of all phases. Real estate agents also are required to register with K-RERA.
Three real estate projects and around 12 real estate agents have been registered so far. A number of applications are pending. K-RERA is expecting a registration of between 300 and 400 projects.
Grading projects
The Real Estate (Regulation and Development) Act, 2016, empowers State RERAs to grade real estate projects and promoters.
In Kerala, where RERA was taking its first steps, this would not be introduced immediately, Mr. Kurian said. “It can be done in another five years or so once the activities of K-RERA have stabilised. It is a transparent process of grading based on criteria such as timely delivery of projects,” he said.
K-RERA has urged potential buyers to book apartments only in RERA-registered projects and deal exclusively with RERA-registered real estate agents.
