The Real Estate (Regulation and Development) Act, 2016 was cleared by the State Cabinet on Wednesday and the rules finalised.
However, it diluted one of the key provisions of the Act with respect to ongoing projects.
“All ongoing projects that have 60% of developmental works completed or sale deeds executed have been exempted from the ambit of RERA in the State,” said Law and Parliamentary Affairs Minister T.B. Jayachandra, who briefed presspersons.
This is a watered-down version of the Central Act, which states that all ongoing projects yet to get a Completion Certificate should register with RERA.
The move, while welcomed by the industry, has drawn criticism. M.S. Shankar of Fight for RERA – Karnataka Chapter said that it was disappointing that the State government had diluted the legislation.
Mr. Jayachandra, however, argued that the government was empowered to frame rules and the change was in accordance with law.
The rules will be notified in two days, the Minister said. The State’s RERA Authority will also be formed soon.
