Bengaluru: Even though the deadline is extended, real estate developers have completed only 51 424 apartment projects, leaving thousands of home buyers in trouble, and encouraging a firm reaction from the Authority of the Karnataka Real Estate Supervisory (K-Rera).
However, while K-Rera plans to act against the default developer, Realtors say obstacles caused by pandemic are reasons for projects lying incomplete and wants deadlines to push back six months.
K-Rera has extended the deadline for apartment projects that should be completed in April or slower September 30 as a relief to improve the sector which is strongly influenced by a pandemic.
While data shows only some projects that have been completed in extended deadlines, Krera officials say they will wait until the end of the month to assess the situation before taking action against the default developer.
“Developers must face legal consequences if they are found to fail to give a flat to customers in an extended deadline.
We will issue notices to them,” said HC Kishore Chandra, Chairperson, K-Rera.
The rule states that a builder fails to give a flat on the date mentioned in the sales agreement, then he must pay an interest of 9% in the flat value for the delayed period other than the compensation set by the K-Rera set by K-Rera.
This is the limitation of the third time limit provided by the developer after the Covid-19 hit in March 2020.
Based on the center directives, the first time to extend the six-month deadline since 15 months.
Overall, 525 of the 4,378 approved projects have not been completed in the specified time, while the deadline for 241 projects extended for reasons is generally not related to covid.
While 284 applications that are looking for extensions are still in process, the settlement date has ended for 976 projects.
“This is a sorry situation,” said Ms Shankar, Secretary General of the Forum for the People’s Collective Efforts.
“Customers in trouble without support coming from the government.
K-Rera must be proactive in upholding the rules and ensuring justice for home buyers.” He said the home buyer must now wait longer because of ownership but must continue to pay home loans, while the government’s generosity is limited on the developer.
But the developer argues that the extended deadline does not really benefit this sector because it is not uniformly applied to all projects.
“K-Rera Circular said whatever project to be completed on April 1, 2020 received an extension until September 30, 2020.
This means the extension is different from the project to the project.
For example, a project scheduled to be completed on September 29, 2020 will get an extension of only one day , “said Bhaskar Nagendrappa, President, Credaibengaluru, while demanding a uniform six-month extension.
But the home buyer said the extension was unreasonable like, unlike the first wave, there was no sidewalk in construction activities during the second covid wave.
But the developer counting that said the business was devastated by the malignancy of infection and a higher mortality rate.