Karnataka HC issues notice to the Union, after Registration under RERA challenged

Rera rules challenged in Karnataka HC

The High Court of Karnataka on Monday issued a notice to the State and Union governments, after a petition had alleged the Karnataka Real Estate (Regulation and Development) RERA Rules, 2017 framed is blatantly breaching the provisions of the Real Estate (Regulation and Development) RERA Act.

Justice A.S. Bopanna passed the order on petitions filed by Nadaprabhu Kempegowda Layout Site Owners’ and Residents’ Welfare Association and others.

The petitioners have raised an issue on the “explanation” attached to Rule 4(1) of the Karnataka Rules, while contending that the State government, through the “explanations” has “unlawfully permitted certain ongoing projects to evade the Central statute.” It has further contended that RERA has not given any space for State governments to carve out any exception to exclude ‘ongoing projects’ from compulsory registration.

Allowing certain categories of ongoing projects, which were permitted to be a fallout of registration under the RERA by the State government through its “explanations” in the Rule, would defeat consumer interest that is safeguarded in the RERA, which has made registration mandatory for all ongoing projects that have not received completion certificate on the date of commencement of RERA.

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