In May this year, the Karnataka State Government notified the clause of Act for quarterly updates. However, the Karnataka RERA postposed the same as the system on builders end was not ready after which the authority again notified the clause in November as the software was ready to work. The developers were then asked to upload the details within a period of 30 days i.e. a month.
This is the first time that the developers are submitting updates for all projects since getting them registered with the RERA authority in May 2017. A penalty of 5 percent will be imposed on the developers who fail to submit details within the given deadline.
The developers are also required to deposit 70% of the amount collected from the buyers in an exclusive bank account called as Escrow account and can use it only for the specific project. The quarterly update should also have the details of funds spent during the period.
According to the source, out of the 2200 projects registered projects merely 25% of them have submitted the details of project status till Tuesday evening. However, the developers blame technical snag for delay in submitting details on the website. The Karnataka RERA also asked developers to submit audit reports along with the status details which according to the developers have been submitted by them at the time registration.
Suresh Hari, vice-president, Confederation of Real Estate Developers Association (CREDAI), Bengaluru said that the developers are keen to submit details but the web portal contains a lot of bugs and timely submission of details without fixing of the bugs is hard to achieve.
The Karnataka Real Estate Regulatory Authority (RERA) is receiving a slow response from the developers in the state about the quarterly updation of their projects progress. It is mandatory for the realtors to submit the same with the RERA authority in the set deadline.
According to the Real Estate (Regulation and Development) Act, it is compulsory for the developers to upload details such as RERA registration, completion status of the project since its commencement and the list of approvals sanctioned and awaited in every quarter.