The much awaited Karnataka Real Estate (Regulation and Development Rules) Act, was finally notified by the State government on Monday.
Contrary to the earlier understanding that the rules would give exemption to ongoing projects, the final notification has brought all apartment projects where works are still going on under the ambit of RERA. The rules state that only those projects where all development works have been completed, and where sale and lease deeds of 60% of the apartments/houses/plots are executed, are exempted.
While the State Cabinet had approved the draft rules last week, confusion over what would constitute an ongoing project had persisted till the final notification. Government sources had indicated that projects, where 60% of the work was completed, would be exempted. However, the rules make it clear that the 60% clause will be applied only for sale and lease deeds, not for development works.
The rules exempt those layouts where streets, civic amenities sites and other services have been handed over to the local authority for maintenance. They also exempt apartment projects where common areas and facilities have been handed over to the registered association consisting of a majority of allottees. Projects where development works have been completed as per the Act and certificated by the competent agency, and where an application has been filed for the issue of completion certificate, are also exempt.
For those projects where partial occupancy certificate is obtained, the exemption is limited to the portion for which the certificate is obtained.
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