MANGALURU, NOVEMBER 10:  

Real estate sector has expressed concern over the penal provisions in the Karnataka Real Estate Regulatory Authority (RERA) Act in case of project delays, even for reasons beyond builders’ control.

Addressing a workshop organised by Karnataka Real Estate Regulatory Authority, DB Mehta, president of the Mangaluru chapter of Credai (Confederation of Real Estate Developers’ Association of India), said the delay in the execution of a project attracts penalty. Unlike the manufacturing industry, real estate sector is dependent on a lot of variables.

Unavoidable delays

Giving the recent example of smog in Delhi, he said the construction sector there has been asked to stop work for now.

Referring to the water crisis in Mangaluru a year ago and the subsequent ban on construction activities in the region, he said every time real estate sector is forced to stop operations, projects get delayed.

Many a time, approvals from government agencies are delayed, Mehta said. Stating that these matters are not under the control of the builders, he said RERA in Karnataka should take these matters into consideration while deciding on penal provisions related to delays in project executions.

Urging RERA not to put details related to balance sheets and profit and loss accounts of builders in the public domain, Mehta said this would make builders and developers vulnerable to threats from underworld elements.

In Mangaluru, 14 cases related to threats from underworld to builders were registered during 2014-15, he said.

VinothPriya, Secretary of RERA, said RERA is not a hurdle for its stakeholders. In fact, it strengthens the real estate sector, she said.

Urging builders and developers to register their projects with RERA, she said around 100 projects from Mangaluru region have been registered with the authority till now.

She also urged the urban development authorities and town planning divisions of the local bodies to share their database with RERA.

Source: TheHinduBusinessLine.Com