685 construction projects are not registered with RERA Karnataka and have been listed as “under investigation”.
The Centre’s RERA Act, 2016, which Karnataka government notified in July last year, is aimed at regulating the real estate industry with a host of rules, thus safeguarding investors.
All projects constructed on 5,000 sq ft and above have to come under RERA’s purview and will get a clearance certification only after they meet the prescribed norms. As on Monday, RERA Karnataka has listed 685 realty projects in red with an alert: “The public is hereby informed that these projects are not registered with RERA and are under investigation.
The realty industry is in a tizzy as the stakes are high. A conservative estimate puts the worth of these projects (including that of A-listed builders) at nearly Rs 50,000 crore.
685 projects would mean at least one lakh units, at an average of Rs 50 lakh per apartment. It is a neat Rs 50,000 crore exposure for builders. A property buyer would have paid 15-30% upward during the time of booking, which means around Rs 15,000 crore has already gone into the market and THOSE WHO HAVE INVESTED IS AT RISK.
There are toooo many small builders and developers, developing or building apartments in small sites (less than 5000sft) and it is too risky or dangerous to buy without proper titles and approvals. Many buyers are being tempted or fleeced to book or buy the apartments from these builders at tempting PRICES.
Conduct a thorough and diligent investigation into the titles and approvals before entering into Sale Agreements.
THE LIST OF PROPERTIES/RESALE PROPERTIES CONSTRUCTED UNDER LESS THAN 5,000 SFT is MUCH MORE THAN THE PROPERTY UNDER INVESTIGATION.