RERA Karnataka will impose a fine of Rs 10,000 per month on builders for not filing quarterly updates on the project status.

RERA to levy delay fee on builders across Karnataka

The Real Estate Regulatory Authority-Karnataka (RERA-K) will impose a fine of
wwRs 10,000 per month on builders across the State for not filing quarterly updates on the status of their projects, which is mandatory under the RERA Act. As per statistics available on its portal, the updates have not been uploaded for 811 projects.

RERA-K Chairperson K S Lathakumari told The New Indian Express, “The quarterly updates need to be compulsorily updated by the builders as they give the buyers an idea of the physical progress of the houses. The financial details pertaining to the amount collected as well as the amount spent so far too need to be updated.” She said that this pertains only to the period up to December 2019. “We have given a waiver for the year 2020 for all the projects due to Covid-19. However, the updates have not been filed even for the previous year by the builders,” she said.

A ‘Delay Fee’ of Rs 10,000 per month would be imposed on each project, she said. “A common reason given for not filing quarterly updates was that the job was handed over by them to a consultant or a third party or even an employee who had quit. Some of them do not even know their login ID to update their projects. Hence, we have asked them to apply for it again online and update the reports.”

As per statistics available, 512 projects have not applied for extension on the RERA portal. Of these, 413 projects have not filed quarterly updates even for a single financial quarter. Out of another 515 projects that are ongoing ones, 398 have not filed quarterly updates. Action would be initiated under RERA Act under these provisions: Sections7 (3) revocation, Section 34 (1) and Section 63.

A total of 126 projects are set to get exemption from the penalty. “Of these, a total of 39 projects that had applied for a deadline extension to complete their projects would be allowed to do so and file quarterly updates within a month without delay fee,” the chairperson said. “Another 87 projects have applied for an extension and their applications are pending. Even they would get a month’s time to file their updates without the delay fee,” she added.

Source: https://www.newindianexpress.com/cities/bengaluru/2021/jan/19/rera-to-levy-delay-fee-on-builders-across-karnataka-2252000.html