Construction Industry News
Real estate developers in Bengaluru have only completed 51 of the 424 housing projects, even after the deadline was extended.
The Karnataka Real Estate Regulatory Authority (K-RERA) plans to take action against defaulting developers. According to the developers, the main reason for the delay was the pandemic, which extended the deadline by another six months.
K-RERA had extended the deadline for the apartment projects from April to September 30 as a relief for the real estate sector after being hit by the Covid-19 pandemic.
According to data, only a few projects were completed within the extended timeframe. K-RERA officials said they would wait a month before taking action against the defaulting developers.
H C Kishore Chandra, chairman of K-RERA, said the developer would have to take legal action if they fail to deliver the apartments to the clients within the deadline.
If a project developer fails to deliver a project within the term stated in the sales agreement, he will have to pay 9% interest on the value of the apartment for the delayed period, in addition to the compensation set by K-RERA.
It is the third extended deadline given to developers after being hit by the Covid-19 pandemic. K-RERA initially extended the deadline by six months from March 15, 2020 and then extended it for another three months.
In total, 525 of the 4,378 approved projects were not completed within the deadline, while the deadline for 241 projects was extended due to the Covid-19 pandemic. While 284 renewal applications are still pending, the end date for 976 projects has passed.
M S Shankar, general secretary of Forum for People's Collective Efforts, said home buyers should wait for more for the property, but continue to repay the home loans. But the developers claim that the extension was not beneficial because it was not uniform across all projects.
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