Quarterly Compliance for Karnataka
- Tuesday 18th June 2019
- Author: Shreya Uppal
The RERA Act, 2016 became effective from 1st May, 2016 with 69 sections notified out of 92 sections.
The Ministry of Housing and Urban Poverty Alleviation notified the RERA rules for RERA Karnataka on 10 July, 2017 to protect buyerâ€™s interest, enhance professionalism and ensure transparency in the real estate sector. From 24th July, 2017 onwards it initiated the process of Online Registrations for Agents, Promoters and the Projects.
The RERA Act, 2016 became effective from 1st May, 2016 with 69 sections notified out of 92 sections. The Ministry of Housing and Urban Poverty Alleviation notified the RERA rules for RERA Karnataka on 10 July, 2017 to protect buyer’s interest, enhance professionalism and ensure transparency in the real estate sector. From 24th July, 2017 onwards it initiated the process of Online Registrations for Agents, Promoters and the Projects.
To infuse transparency into the system and have a Control Mechanism over the ongoing projects of the registered developers, the Karnataka RERA Authority has come up with the Quarterly Compliance system. As per Section 4(2)(1)(D) of the RERA Act, 2016 a separate account has to be maintained in which 70% of the amount collected from the homebuyers shall be deposited which shall strictly be used by the developer in its project only. After submitting documents of quarterly compliance with the banks stating the % completion of work, this separate account amount can be withdrawn. Hence, this act as a tool of governance to verify the actions.
What is Quarterly Compliance?
1. Every quarter the developers need to submit various documents regarding their project status details.
2. The Karnataka RERA has an entirely different procedure for Quarterly Return. It has divided the section into two parts- For Plots and For Apartments.
2. The trio of sequential documents of Architect Certificate (Form 1), Engineer Certificate (Form 2) and Chartered Accountant Certificate (Form 3) is categorized as RERA Return.
3. Also, the no. of flats sold, booked and leased with their respective construction status need to be informed.
4. The RERA Quarterly Compliance Checklist for Apartment includes the following:
(a) % of Water Supply completion.
(b) Any pending litigation on the projects including land thereon.
(c) % Completion of Earthwork and other leveling work
(d) % Completion of Internal Walls, Internal Plaster, floorings within flats/premises, etc.
(e) Installation of lifts, water pumps, Fire Fighting Fittings and Equipment as per CFO NOC, Electrical fittings to Common Areas, electro, mechanical equipment, Compliance to conditions of environment /CRZ NOC, Finishing to entrance lobby/s, plinth protection, Compound Wall and all other requirements.
(f) % Completion of Staircases, Lifts Wells and Lobbies at each Floor level connecting Staircases and Lifts, Overhead and Underground Water Tanks.
(g) The cost spent relating to Onsite expenditure for site overhead, consultant fees, electricity, etc.
(h) The required No Objection Certificate (NOC) from Horticulture Department, Labour and Education Department, Fire and safety department, etc.
5. The RERA Quarterly Compliance Checklist for Plots includes the following:
(a) Any pending litigation on the project including land along with the type of case, name of the authority with which it is pending and present status of the case.
(b) % Completion of Solid waste management, street lighting and the ground clearance of plots.
(c) Any payment of taxes, charges, premiums and fees which is to be given quarter-wise.
(d) The required No Objection Certificate (NOC) from Horticulture Department, Labor and Education Department, Fire and safety department, etc.
With the above-detailed compliances, the authority has assured of tracking each and every step for the registered projects which is further relieving the homebuyers. Thanks to the RERA Compliances!
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