As per the Centre’s directives, Karnataka is bound to notify Real Estate (Regulatory and Development) Act (RERA) by May 1. The act favours the interest of homebuyers and aims to re-organise the Indian realty sector.
The Indian government has passed new RERA rules in November and asked all the states to adopt it within six months. The state government has been consideration some of the requests by the builders who were seeking relaxation of certain stringent norms incorporated under the Centre’s Act.
The main highlights of new RERA rules are launching of projects after all the necessary approvals and compensation to homebuyers if delayed in delivery. The state government is in the final stage of the process to notify the draft rules and bring in the legislation by May 1, confirms Rajeev Chawla, Additional Chief Secretary, Housing Department.
“RERA will put a lot of unorganised players out of the market as they will not be able to start any project before they have all the requisite certificates with them. This will create a trust in home buyers. But at the same time, property prices are expected to see an appreciation of 15-20%,” says Suresh Hari, Secretary, Credai-Bengaluru.
Source: ET Realty