From Our Special Correspondent
Daijiworld Media Network

Bengaluru, May 5: Karnataka is likely to implement the Real Estate (Regulation and Development) Act, 2016 passed by the Parliament without any modification as the Law department has cleared the bill in toto. 

The Bill has been forwarded to State Urban Development Department for a close study.

The Bill came up for discussion in the state cabinet meeting chaired by Chief Minister Siddaramaiah and it was decided to implement the Central Act without further delay after obtaining the opinion of the Urban Development department, Law and Parlimanetary Affairs minister TB Jayachandra said briefing the reporters after the meeting.

"The cabinet sub-committee headed by me (TBJ) has cleared the Bill after Law department approved it inn toto. The bill has been sent to Urban Development Department for further scrutiny. It will come before the cabinet if any changes are suggested," Jayachandra said. 

Though the Central Act has come into force, Karnataka is yet to notify the rules for the Act. The notification is expected within a couple of weeks. 

The bill which seeks to protect the interest of the property buyers and bring greater accountability for the builders has caused anxiety among the real estate developers and builders. 

Developers are apprehensive that the registration of under-construction projects could lead to delays. They are also concerned that setting aside 70% of the funds collected from customers will strain their already stretched liquidity position. 

According to the bill, builders will have to deposit 70% of the money paid by buyers in a separate account towards the cost of construction, including that of land, in order to protect the rights of consumers and curb the diversion of funds. The builders are also seeking an exemption for the ongoing projects from the ambit of the Act.