Until now, the BDA had refused to comply with RERA regulations saying it does not come under the ambit of RERA since it is a government body.

BDA asked to abide by RERA rules Respite to Bengalurus NPKL buyersCourtesy: Picxy.com/rajastills
news RERA Friday, January 17, 2020 - 15:06

In a ray of hope for the plot buyers of the Nadaprabhu Kempegowda Layout (NPKL) in greater Bengaluru, the Real Estate Regulatory Authority Karnataka (RERA-K) ruled that the Bangalore Development Authority (BDA) has to comply with RERA rules.

However, no compensation has been awarded to the buyers as of now. The matter will be heard again at a later date. Quoting Section 88 and 89 of the Real Estate (Regulation and Development) Act (RERA), the RERA-K Chairman stated the RERA rules will supersede BDA rules as the law is clear that in case of existing and conflicting provisions, the RERA Act will overrule. 

Section 89 of the RERA provides that the provisions of RERA shall have effect notwithstanding anything inconsistent therewith contained in any other law for the time being in force, while section 88 says the provisions of this (RERA) Act shall be in addition to, and not in derogation of, the provisions of any other law for the time being in force.

This means that the provisions of RERA will supersede over any existing law, which is being disputed.

TNM has earlier reported how BDA has been defaulting on its promises to develop the proposed layout for more than a year. While the plots on the developed land were supposed to be handed over to the 20,000-odd owners by March 2018, the BDA has missed that, and several subsequent deadlines. Not only have plot buyers – who bought the land in 2016 –been kept waiting for more than a year, they will also be forced to pay at least 3% more interest on their home loans due to the delay. All the allottees needed to pay the entire amount upfront within two months of the plot being allocated. 

Until now, the BDA had refused to comply with RERA regulations saying it does not come under the ambit of RERA since it is a government body.

Further, the BDA claimed that since allotments were made prior to May 2017 (Before RERA was implemented), they are immune to RERA clauses. But the RERA authority underlined that since it was an ongoing project, the laws will be applicable.

As part of the hearing, BDA officials committed review the work done so far by visiting the layout along with the buyers and schedule a meeting with the BDA commissioner on this issue of delay.

RERA Act was passed by both the Houses of Parliament in March 2016. With the Act coming into force, home buyers had a hope that they will get compensation if there were delays in the delivery of a project or be protected from overcharging.

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