BENGALURU: The Karnataka government will come down heavily on builders and brokers who have not registered themselves with the state Real Estate Regulatory Authority (RERA), a top official said.
The deadline for registration under the Central RERA Act was July 31.
With that now passed, promoters and agents who are not registered with the regulator are barred from advertising, marketing, booking, selling or offering to sell any plot, apartment or building.
Karnataka notified the Real Estate Regulatory (Regulation and Development) Act on July 10 and launched a portal on July 24 for builders and agents to register themselves and their projects. “Anyone can be registered even now, as the portal is open and functional,“ said Kapil Mohan, the principal secretary at the Karnataka Housing Board. “If they are caught selling without registration, they will have (to face a) penalty . So, the sooner they register, the better. It is in their interest,“ Mohan said. He is also the interim regulator in the state.
The penalty for flouting the rules could be a hefty fine or imprisonment, or both. Before the deadline ended on July 31, RERA Karnataka received more than 700 registration requests through its portal, from both brokers and builders. According to Redwoods, a property consultancy firm, Bengaluru has at least 868 ongoing projects, launched since 2014. Industry estimates put the number of real estate brokers at more than 10,000.
The penalty may cumulatively extend up to 5% of the cost of the plot, apartment or building, as the case may be. If a builder fails to comply with the rule, he be liable to a penalty which may extend up to 10% of the estimated cost of the project as determined by the authority .
If the builder continues to violate the order, he may even face imprisonment of up to three years or a fine which can be up to another 10% of the estimated cost of the real estate project, or both.