Karnataka RERA imposes penalty for delayed submission of audits by the builders

Bengaluru: The Karnataka real estate regulatory authority has imposed penalty for delayed submission of the quarterly and annual audits of projects by the builders, as per a circular issued by the RERA authority.
The circular stated that the property development companies that fail to update the quarterly and annual audit within15 days from the due date will be fined.

"Builders will have to pay a penalty of Rs 10,000 per month for a delay of a month, while for delays of more than a month, the penalty charges will be Rs 20,000 per month," K S LathaKumari secretary K-RERA said in the circular.

The authority had observed that many of the promoters are not filing the post registration, quarterly updates and annual audits on the website of the authority within the prescribed time.

According to section 11 (1), rule(D) of K-RERA, 2017, mandates the promoters to perform certain functions as required under the ACT, including mandatory quarterly updates on the RERA website.

"The delay fees shall be effective commencing from the date of the circular and the promoters should remit the fees through RERA e-payment at the time of filing the quarterly update," said Kumari.

According to the latest data from K-RERA website, the completion date of 625 projects had expired and 246 projects extension were under process.

"Even after over 3 years of functioning of K-RERA, it lacks transparency and data. We seek a detailed report form the Karnataka government on the activities of K-RERA till date including projects registration, penal action initiated and execution of RERA orders," said M S Shankar General Secretary Forum for Peoples collective Efforts.

The Karnataka government notified Karnataka Real Estate (Regulation and Development) Rules-2017 in the state gazette in July 2018 with the setting up of Karnataka RERA.

In July it notified the draft model sales agreement as per central government rules.