Kerala govt to make changes in KRERA

THIRUVANANTHAPURAM: The state government is likely to make certain changes to Kerala Real Estate ( regulation and development) Act, 2016 so as to synchronise it with the central act. Kerala real estate regulatory authority ( KRERA) has submitted a set of recommendations to the state government towards framing rules and regulations for the functioning of KRERA highlighting the need to make certain sections in tune with the Real Estate ( regulation and development) Act issued by ministry of housing and urban poverty alleviation.

Major variations have surfaced in three factors — period of initiation of constructions which need to be brought under the ambit of registration, land dimension and number of units based on which promoters need to register apartments with KRERA.

As per the central act, the promoters of projects that are ongoing on the date of commencement of this Act and for which the completion certificate has not been issued and promoters of new projects shall register the real estate project with the Real Estate Regulatory Authority established under this Act. However, the state act directs promoters within a specified period ( to be decided later) from the date of commencement of act to register with KRERA. ”This condition to include ongoing projects is slightly complex since the projects would have reached agreement stage and would have been sold and it is not clear how such projects can be made to register with KRERA,” said a senior government official.

The authority has also cited a variation regarding land dimension and number of units. While the central act mandates projects with area of land proposed to be developed exceeding five hundred square meters or the number of apartments above eight inclusive of all phases to be registered with KRERA, the state act puts the conditions as 1000 sq mtr and 12 respectively. Sources said that the state government is likely to bring down the conditions in accordance with central act.

Carpet area is another factor which has shown variance. The central act specifies carpet area as the basis of sale. The state act even while mentioning carpet area only limits it to the point that it shall be mentioned in the agreement. ” We have brought the variations to the notice of state government,” an official said.

The variations between central act and state act might delay full fledged functioning of KRERA.

Registration of projects is yet to begin although KRERA came into effect in January. Officials said the process of registration cannot be initiated unless clarity is issued by the government regarding variations in acts.

Credits ET Realty

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