CHAPTER II - REAL ESTATE PROJECT

No: DOH 109KHB2017 Karnataka Government Secretariat VikasaSoudha, Bangalore, Dated: 10-07-2017

NOTIFICATION - Whereas the draft of the Karnataka Real Estate (Regulation and Development) Rules, 2016 was published vide Government Order No. DOH 128 KHB 2016, dated: 24th October, 2016, in part I of the Karnataka Gazette ( Extra Ordinary Number 1193), dated 24th October, 2016 inviting suggestions from all persons likely to be affected thereby within fifteen days from the date of its publication in the Official Gazette And whereas, the said Gazette was made available to public on 24th October, 2016And whereas, suggestions have been received and considered by the State Government And whereas, the Government of India vide S.O No.3347, dated 28thOctober 2016 had made the order for removing certain difficulties in implementing the provisions of the Act

4. Additional disclosure by promoters of ongoing projects -

(1) upon the notification for Commencement of sub-section


(1) of section 3 , promoters of all ongoing projects which have not recevied completion certificate shall , within the time Specified in the said sub-section , make an application to the Regulatory Authority in the form and manner as specified in rule 3

Explanation: For the purpose of this rule “ongoing project ” means a project where development is going on and for which completion certificate has not been issued but excludes such projects which fulfill any of the following criteria on the date of notification of these rules , namely :-

(i)in respect of layouts where the streets and civic amenties sites and other services have been handed over to the local Authority and Planning Authority for maintenance ;

(ii)in respect of apartments where common areas and facilities hav been handed over to the registerd Association consisting of majority of allotted ;

(iii) Where all Development works have been completed as per the Act and Certified by the competent agency and sale /lease deeds of sixty percent of the apartments / house / plots have been registered and Executed ;

(iv) Where all developments works have been completed as per act and Certified by the competent agency and appliucation has been filed with the competent authority for issue of completion certificate / occupation certificate ; and

(v) where Partial occupancy certificate is obtained to the extent of the portion for which the partial Occupancy Certificate is obtained.

(2) The promoter shall in addition to disclosures provided in rule 3 disclose the following information, namely:-

(a) the original sanctioned plan, layout plan and specifications and the subsequent modifications carried out, if any, including the existing sanctioned plan, layout plan and specifications;

Explanation:- For the purpose of clause (ii) of sub-section (2) of section 14 of the Act, the Prior written consent of at least two third of the allottees would not be required if,-

(i) implementation of the proposed plan has already been disclosed to the allottees under the agreement prior to registration, or

(ii) modification is required to be made in compliance of any order or direction issued by competent authority or statutory authority. under the agreement for sale, the promoter is not required to obtain the consent of allottee in case Of any alteration Or addition to the apartrnent required by Government authorities or due to change in any law.

(b) the total amount of money collected from the allottees and the total amount of money used for development of the project including the total amount of balance money lying with the promoter; and

(c) status of the project (extent of development carried out till date and the extent of development pending) including the original time period disclosed to the allottee for completion of the project at the time of sale including the delay and the time period within which he undertakes to complete the pending project, which shall be

commensurate with the extent of development already completed, and this information shall be certified by an engineer, an architect and a chartered accountant in practice.

(3) The promoter shall disclose the size of the apartment based on carpet area even if earlier sold on any other basis such as super area, super built up area, built up area etc. which shall not affect the validity of the agreement entered into between the promoter and the allottee to that extent.

(4) In case of plotted development, the promoter shall disclose the area Of the plot being sold to the allottees as per the layout plan.

(5) For projects that are ongoing and have not received completion certificate on the date of commencement of the Act, the promoter shall, within a period of three months of the application for registration of the project with the Authority, deposit in the separate bank account, seventy per cent. of the amounts already realized from the allottees, which have not been utilized for construction of the project or the land cost for the project as required under sub-clause (D) of clause (1) of sub-section (2) of section 4, which shall be used for the purposes specified therein: Provided that if the receivable of the ongoing project is less than the estimated cost of balance construction, then the promoter shall deposit 100 per cent Of the amounts to be realised in the separate account.

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