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Karnataka: 37% projects miss deadline, RERA blamed for inaction

RERA blamed for inaction

Hundreds of buyers are at sea after paying for their dream home: 37% of 2,581 projects registered under the Real Estate Regulatory Authority-Karnataka have failed to meet the completion deadline. The authority appears to be equally helpless as most of the defaulting builders haven’t bothered to report about the expiry date of their projects.

Of the 2,581 registered projects in the state, builders of 948 have failed to complete construction within the declared time frame. Builders of only 290 projects have informed RERA that they’ve completed their work and the flats are ready for occupation. About 220 projects have sought extension and there is no information about the 440 whose expiry date is over.

According to the RERA Act, a builder has to declare the project-completion date at the time of registration. In case of failure to meet the deadline, s/he can seek extension once for a maximum of one year. The builder is liable to be punished if s/he fails complete the project within the declared time frame and RERA can confiscate his/her escrow account and initiate legal action.

What has surprised buyers and activists is RERA’s inaction and failure to crack the whip on those builders who have failed to complete their projects on time. “Defaulters have been allowed to go scot-free and builders are taking buyers for a ride,” claimed MS Shankar, national secretary of Forum for People’s Collective Efforts.

RERA-Karnataka chairman MR Kamble said: “We are getting details of the projects which have defaulted and are planning to issue notices.” He said a team of empanelled chartered accountants is being constituted, which will look into the anomalies of housing projects before advising RERA about the action to be taken.

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