Applications of as many as 252 projects seeking extension of deadline are pending with the Real Estate Regulatory Authority – Karnataka (RERA-K), many of them for over a year now. As builders allege red tape at RERA-K, authorities blame the delay on builders not providing adequate documentation to make their case and lack of response to their queries.

While builders and RERA-K blame each other, it is home buyers who are paying a steep price.

“Given the market situation, most projects that have applied for extension are in need of funds they plan to raise from the market or avail new loans from banks. However, with the expiry of the deadline as registered with RERA-K and no extension given, builders are not able to raise funds bringing work on most of these projects to a grinding halt for nearly a year now,” said R. Ramesh who represents a property consultant firm.

This time is mostly lost in the project cycle. “As work on the project comes to a halt while an application is pending with the Authority, it is the hapless homebuyer who pays a steep price. The delivery of their homes is delayed, which forces them to continue paying both rent and home loans for this additional period for no fault of theirs,” rued M.S. Shankar, Forum for People’s Collective Efforts, which represents homebuyers.

Builders allege red tape and lack of rationale in clearing applications, including absence of a queue system, at RERA-K.

“Not just extension applications, even trivial applications like change of address, bank account details have been pending at RERA for many months. While some recently made applications are cleared, many made several months ago are pending,” said a developer.

RERA-K authorities blame builders for the delay. “Most of the applications have been pending for a long time as builders have given incomplete information and have not bothered to respond to our repeated queries. Two weeks ago, we began hearing of each application online over video conferencing due to COVID-19,” said K.S. Latha Kumari, Secretary, RERA-K.

Forum for People’s Collective Efforts recently wrote to the Housing Department of the State government seeking their intervention.

“As per RERA-K website, deadlines of 618 projects have expired and they have not even applied for an extension. What action has RERA-K taken against these projects? Also, RERA has to grant extension only if the Authority is convinced that there are compelling reasons for the developer to not be able to complete the project within the deadline, on a case-by-case basis. Deadlines for 182 projects have been extended by a year. But there is no transparency on the grounds for grant of extension,” Mr. Shankar, who wrote the letter, said.

The letter seeks a review meeting of RERA-K by the State government.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here