The Kerala Real Estate Regulatory Authority (K-RERA) will help build trust in the real estate sector and infuse it with transparency and efficiency, Chief Minister Pinarayi Vijayan said on Wednesday.
The activities of a few individuals have served to malign this important sector to the extent that it has been equated to a ‘mafia,’ the Chief Minister said, formally inaugurating K-RERA at a function here.
With its emphasis on protecting the interests of consumers (buyers, allottees), K-RERA focusses on the prevention of malpractices in the real estate sector, he said.
Duping of buyers
Instances of buyers being duped by a section in the real estate sector had prompted the Parliament to pass the Real Estate (Regulation and Development) Act in 2016 making it mandatory for all States to form RERAs. K-RERA is designed to prevent such malpractices in Kerala.
Realtors who function in a lawful manner will not find themselves inconvenienced by RERA, Mr. Vijayan said.
The real estate sector is integral to the development of land. Negative financial trends in real estate affects the economic sector as a whole.
If policies are favourable, the sector can grow. So it is important to have policies and approaches that do not weaken it.
While the sector has witnessed spectacular growth in the past few decades, the absence of an effective regulatory mechanism was the main reason for the problems associated with real estate sector.
“This is not a sector which should be equated to a ‘mafia’,” the Chief Minister said.
From Oct. 2019
Technically, K-RERA came into being in October last year with P.H. Kurian as chairman and Preetha P. Menon as member. The Real Estate (Regulation and Development) Act, 2016, makes it compulsory for builders to register projects with the State-level RERA.
Real estate agents also need to get themselves with the authority. RERA registration is applicable to projects where the land to be developed is 500 square metres or more and the number of apartments is eight or more inclusive of all phases.
An adjudicating officer who will handle compensation claims and an appellate tribunal for handling appeals on K-RERA decisions will be appointed soon, the Chief Minister said. He issued the registration certificates to builders and real estate agents who registered with RERA. The Chief Minister also released the emblem of K-RERA on the occasion. Minister for Local Self Government A. C. Moideen presided. Additional Chief Secretary T.K. Jose, K-RERA chairman P. H. Kurian and member Preetha P. Menon spoke.
