Karnataka RERA brought a change in the realty sector but still has a long way to go

Bengaluru: It has been four years since the Karnataka Real Estate Regulatory Authority (K-RERA) is established and it brought a paradigm shift in the way the realty sector functions. it has also given some respite to the homebuyers. However, it is still not 100 percent effective as concerns regarding enforcement of its own orders remain.

MS Shankar, who represents homebuyers and heads Fight for RERA’s Karnataka Chapter said, “RERA has played a crucial part in changing the fabric of the real estate sector over the past four years. While it has helped enhance governance and discipline, it still has a long way to go.”

Farook Mahmood, managing director of Silverline Realty said that even after four years, slow paced registration of projects and execution of orders released by the Appellate Tribunal continue to be two major challenges for K-RERA. he said, “Despite several provisions for imposition of penalty, revocation of registration or confiscation of properties available under the Act, none of these has been strictly enforced by the authority. Homebuyers do not have access to some crucial information on K-RERA’s website. While information related to complaints is available, one cannot view online copies of the same. Even judgment copies are not uploaded in real-time.”

The authority also has a shortage of technical staff to deal with cases and inspect projects. Mahmood added, “As the present setup is making the authority toothless, the government should appoint a retired district judge as an executive officer.” RERA has boosted the homebuyer’s sentiments.

Drastic changes have been seen with regard to project registration and homebuyers are being given up to date information. The introduction of conciliation forum for amicable settlement of disputes between developers and buyers has reduced prolonged litigation.

Suresh Hari, Chairman of Credai Bangalore said, “It had enables focused action by developer regarding delivery schedule and also blocked fly-by-night operators from entering the field.” He added that RERA has not only helped homebuyers but also builders.

CN Govindaraju, Chairman and managing director, Vaishnavi group said, “RERA has made developers accountable to customers when it comes to delivering a quality product in the stipulated time period. This has helped reduce deliberation and disputes between customers and developers as the expectations are clear. RERA has also brought in a lot of financial discipline.

The appointment of HC Kishor Chandra, a retired DGP rank officer as Chairman and another retired DGP, Neelmani Raju,as one of its memebers by the state government has brought hope of change to the builders as well as the homebuyers. They will take charge from June 1.

Shankar alleges that, “One of the reasons why RERA has failed in its task is because many retired bureaucrats see it as a post retirement opening, and the government has been playing musical chairs by frequently transferring key officials. The previous secretary of RERA, KS Latha Kumari, had brought about a lot of reforms but she was transferred midway for no reason.”