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Buyers apprehensive?

Under RERA, the rules pertaining to non-compliance penalty have been diluted in some States

On the homebuyers’ front, there is grave apprehension that Karnataka too would dilute the RERA rules. According to M.S. Shankar, State Convener, Fight for RERA, the State government released the Karnataka Draft Rules on October 24, 2016. It sought feedback from stakeholders in a meeting on November 10. A delegation of the Fight for RERA, State chapter, met Housing Minister Krishnappa on January 10, 2017, and the then Principal Secretary Shambh Dayal Meena. The Act too urged the States to abide by the April 30, 2017 deadline for the announcement of rules. A meeting of State Secretaries of Housing was held in Delhi with Union Urban Development Minister Venkaiah Naidu on January 17, 2017. “It is surprising that it was with the Opposition Congress that helped the bill to sail through in the Rajya Sabha at the Centre while it is yet to release it in the State,” quips Shankar.

Dilutions

Shankar says the rules pertaining to non-compliance penalty have been diluted in seven of the nine States that have released the State rules (i.e., Andhra Pradesh, Madhya Pradesh, Maharashtra, Bihar, Odisha, Rajasthan and Uttar Pradesh) whereas rules in Gujarat lacked clarity.

Quoting a report by CRISIL Research Assessment, Shankar says the only State where it is in line with the Central Act was Kerala. As for the ongoing projects, Uttar Pradesh has diluted them to the extent of being totally ineffective. He says rules in most of the States lack clarity on payment schedules. Shankar alleges that Karnataka is dragging its feet on commitment to offering a fair deal to the homebuyers and is under pressure from developers.

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