BENGALURU: After dragging its feet for nearly two months over implementing the Real Estate (Regulation and Development) Act (RERA), the state cabinet on Wednesday approved the rules to be notified under RERA.
Two major changes are ongoing projects where 60% of work has been completed will not be brought under the purview of the legislation, and the cost of the project will be determined on the basis of the prevailing guidance value.
With regard to allegations that the state government, despite being the first in the country to come up with draft rules, had resorted to delaying tactics in notifying the final rules, law minister TB Jayachandra said: "There has been delay in notifying the final rules because of extensive consultations." The new rules will be notified in two or three days," the law minister said.
The minister, however, evaded questions on the rationale behind excluding projects where 60 per cent of the work has been completed. "Everything will become clear after the rules are notified," he said.
Sources, however, maintained there was tremendous pressure on the government from the builders' lobby, apparently backed by several ministers, to go slow on RERA.
"The rules approved by the cabinet are against the original act. Excluding projects where 60% construction completed is clear dilution of Section 3. This 60% completion level can be manipulated by developers and most ongoing projects will be kept out of RERA ambit. This kind of a dilution was not expected. The core group members are meeting on Saturday to chalk out our next course of legal action," said M S Shankar, convener, Fight for RERA, Karnataka chapter.
Courtesy: http://timesofindia.indiatimes.com published on July 06, 2017