With the government setting up the Kerala Real Estate Regulatory Authority (KRERA), the registration of real estate projects with the authority is likely to begin next week.
The notification on commencement of Section 3 of the Kerala Real estate (Regulation and Development) Rules, which mandates registration of real estate projects with the authority, is expected this month itself, according to KRERA chairman P H Kurien.
“All ongoing projects and those pending completion certificates will have to be registered with the authority once Section 3 commences. There shall not be any advertising or soliciting by promoters without getting their ongoing projects registered,” said Kurien.
The registrations are done under two categories: Projects for which all approvals and permits have been obtained on or after the date of notification of commencement of Section 3 and ongoing projects for which occupancy certificate (OC) has not been issued.
The other states, where Rera has already been set up, had witnessed a mad rush for occupancy certificates prior to notification, which deals with registration of projects. The officials anticipate a similar move here as well.
The rules mandate that the promoter will have to pay a registration fee at the time of application. The amount is calculated at Rs 10 per sq m of plot area. As for buildings, it is calculated at Rs 25 per sq m of total floor area of residential projects and Rs 50 per sq m of total floor area depending upon nature of projects awaiting occupancy certificate. The commercial projects or any other projects will be charged a registration fee of Rs 100 per sq m of total floor area.
“We hope that rights of both buyers and builders are equally upheld. One of our apprehensions is that while OC is crucial, service providers like the KWA or the KSEB and local bodies responsible for issuance of OC are not brought under Rera. We have already recommended it to the government,” said S Krishnakumar, chairman, Credai Kerala.
In states like Maharashtra, the regulatory authority had come across cases, where it was debated whether they should insist on registration of projects with Rera, which did not have an OC but had commenced long before the Act was notified.
KRERA is also likely to come across similar instances and officials might have to grapple with unauthorised constructions which are yet to receive occupancy certificate. “We are here to make sure that builders meet their mandatory obligations with buyers. Wrongful information or advertisement done contrary to information given at the time of registration would lead to heavy penalties,” said Kurien.
