Karnataka to protect home buyers from fraudulent developers
The panel ensures developers register all projects with authorities and adhere to deadline and specifications promised to the buyer
Jul 16, 2013
Source : The Times of India

 

BANGALORE: The increasing complaints against developers and promoters of housing cooperative societies has caught the Karnataka government’s attention, which has decided to put an end to it.

Coming to the aid of home buyers from the private builders and housing co-operative societies, the chief minister in his budget has made provision for protecting land owners and public who purchase sites from the house from these bodies.

“An expert committee would be set up to examine provisions of various Acts to recommend suitable safeguards,” the CM said in the budget. This scheme is expected to be similar to the Real Estate Regulation and Development (RERD) Bill, approved by the Union cabinet recently.

Several housing cooperative societies and private builders have duped thousands of customers in the recent past after promising to give sites or houses. Most of the unorganized projects do not even have complete set of approvals from the authorities.

Sources in the revenue department said thereal state agents and dealers, now functioning as an unregulated trade, will come under the umbrella of expert committee. “The provision is aimed at weeding out non-serious developers in the business to make easy money. More than 50% projects in the state, big or small have problem in terms of obtaining necessary approvals and clearances from the authorities,” a senior officer told STOI.

Though the Central cabinet approved the proposal, it is the state which has to implement it as land is involved and is a state subject. The officer also maintained that once the RERD Bill gets stamp and approval from the parliament, the committee may also given the power to stall bogus housing projects. The panel ensures developers register all projects with authorities and adhere to deadline and specifications promised to the buyer. It could also make provisions for penalizing realtors who dupe people through misleading advertisements, he said.

Shrinivas Rao, CEO, Asia Pacific of Vestian, a global consultancy company, said that the CM has taken a valid stand when it comes to land. “Maybe constitution of land audit committee on industries or an expert committee to safeguard home buyers interest, the CM has shown some promise on protecting land. The housing cooperatives lack transparency and common people are being duped after taking huge sum of deposits. The proposed expert committee will long way and help buyers,” he said.

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