Rajya Sabha member Rajeev Chandrasekhar has demanded that the state government initiate necessary action to amend the Karnataka Real Estate Rules-2017 and align it with the provisions of the Central legislation on RERA.

In a letter to Chief Minister Siddaramaiah, copies of which were released to the media on Thursday, he stated that the rules have been diluted to deny the benefits of RERA to consumers.

Chandrasekhar said there are many anomalies and inadequacies in the rules. The rules provide a safe harbour to ongoing real estate projects, he said.

Chandrasekhar wrote, “Section 3(1) of RERA categorically stipulates that all projects that are ongoing; and for which the completion certificate has not been issued, must necessarily be registered with the Real Estate Regulatory Authority, thereby bringing them within the rigours of RERA. However, the Explanation to Rule 4(1) of the Rules, exempts various ongoing projects which fulfil certain artificial criteria stipulated therein, from the requirement of registration.”

The MP pointed out that RERA provides that 70% of the amounts realised in each real estate project from the allottees must be deposited in a separate account maintained in a scheduled bank to cover the cost of construction and the land cost. This clause has also been diluted in the rule.

RERA rules framed by the state government also give a long rope to builders and developers to delay the project.

Further, there is non-stipulation of a format of agreement of sale and the rules have been drafted in a manner that they leave room for wrong interpretation.

Align state rules with Central RERA legislation: MP