The Karnataka Real Estate Regulatory Authority (K-RERA) has decided to levy penalty on builders for failure to submit quarterly and annual updates in a bid to ensure compliance of rules by real estate developers.The Section 11 of the Real Estate (Regulation and Development) Act, 2016 and Rule 15(D) of Karnataka Real Estate (Regulation and Development) Rules, 2017 mandates the promoter to...
The Karnataka Real Estate Regulatory Authority (K-RERA) has decided to levy penalty on builders for failure to submit quarterly and annual updates in a bid to ensure compliance of rules by real estate developers.
The Section 11 of the Real Estate (Regulation and Development) Act, 2016 and Rule 15(D) of Karnataka Real Estate (Regulation and Development) Rules, 2017 mandates the promoter to perform certain functions including submission of quarterly updates on the RERA website.
The K-RERA announced through a circular issued on September 3, stating that any builder who fails to upload quarterly updates will be levied a penalty of up to Rs. 10,000 up to one month of delay and Rs. 20,000 per month beyond that.
The delay fees shall be effective from the date of the circular and the promoters shall remit the fees through RERA E-Payment at the time of filing of the quarterly updates. The K-RERA has enabled the facility on its website for online filing of quarterly updates and annual audit for the registered projects.
The K-RERA had observed that many of the promoters were not filing quarterly updates and annual audits on its website within the prescribed time in accordance with Rules 15(D) and Section 4(2)(1)(D), after registration of their projects.
The Rule 15(D) mandates that a promoter shall upload updates on the webpage for the project, within 15 days from the expiry of each quarter on apartments/plots, garages booked, the status update of each building, floor, internal infrastructure and common areas construction with photographs, details on project approvals received, applied and expected date of receipt, approvals to be applied among others.
After the rule comes into play, it will enable homebuyers to take a comparative decision on buying a property. The builders would be required to submit reports on project status, update, sanctioned plan, details of amenities, facilities that will come up in their project.