An umbrella body of homebuyers, Forum for Peoples’ Collective Efforts, has written to the Karnataka government pointing out that the state RERA Authority has failed in its objectives to enforce RERA in its true spirit to protect the interest of homebuyers and merely 10 percent of all ongoing projects have been completed in the last five years since the legislation was enacted.
Buyers have also pointed out that there is lack of transparency regarding the data posted on the Karnataka RERA webpage, especially the information on date wise complaints received, nature of complaints and details and the number of hearings held.
"The failures and shortcomings of RERA have outweighed benefits derived from it by a wide margin," the letter written to the principle secretary, housing department, Government of Karnataka, said.
The letter has been written on the completion of four years of enforcement of RERA Act in the state. RERA in Karnataka was notified on July 10, 2017.
“There is no transparency of above data in Karnataka RERA webpage on date wise complaint received, nature of complaint and details, number of hearing held date wise and complaint wise, reason for adjournment recorded for every date of hearing scheduled, order/judgement reserved date, judgement/orders pronounced date, and copies of all the judgments not available for public,” the letter written by FPCE general secretary MS Shankar said.
“The intent of RERA was to get all the ongoing projects completed but sadly in the last five years not more than 10 percent of all ongoing real estate projects have been completed,” the letter said.
Many projects were left out from the ambit of RERA due to faulty real estate rules. There are around 1,044 unregistered projects reported in the past five years which is more than 25 percent of the registered projects, the letter pointed out.
In most cases scarcity/diversion of funds was the main reason behind project delays and “authorities should have asked promoters of ongoing projects to arrange funds within 6 months from the date of registration but Authorities preferred to wait for the timeline given for completion, and again gave indiscriminate extension,” the letter said.
"Authorities need to shift gear and talk beyond number of projects registered and complaints disposed of," the letter said.