Responsibility of the Promoters / land owners in case of joint development under RERA -

Updates on RERA - Responsibility of the Promoters / land owners in case of joint development under RERA -

Karnataka RERA has issued various circulars and notifications during 2019-20. Below is the important for all the stake holders -

Sl No	Topic	Details
1	Responsibility of the Promoters in case of joint development	1.       Clarified that both the Landowner and Builder / developer is jointly liable for the functions and responsibilities specified in the Act in the same manner as the promoter who actually obtains building permissions and carries out construction   2.       Developer promoter shall register the project including the share of landowner promoter   3.       Developer promoter to monitor the transaction to be done by Landowner to comply with Sec 4(2)(l)(D) of the Act – financial management of 30/70   4.       Obligation and liabilities of all such (landowner / builder) shall be at par with each other   5.       Development agreement shall clearly specify the details of the rights and shares of each promoter. Same should be uploaded in K RERA Website   6.       Joint affidavit shall be uploaded (Developer and all Landowners)   7.       Developer is liable to provide the details of transactions carried out by the Landowner and shall ensure by asking to deposit 70 % of the sale proceeds to realized to the designated account of the real estate project.   8.       Developer shall comply with Rule 15 including quarterly update of the entire project (including landowner transaction)
		In case of any Joint development agreements entered, developer and landowner shall have clarity on various compliances under RERA starting from Registration of project, deposit of money in Project Designated bank account, operation of such bank account, withdrawal of money based on proportionate completion method.   It is important for the developer to communicate on regular basis on development on RERA and compliances there on. Collect information from Landowner in a standard format, which includes agreement entered, money realized, sale deed executed etc. Reporting of transaction of landowner to RERA is the responsibility of developer. Such information shall be included and considered while filing Quarterly Updates as per the Act and Rules   Standard Procedure shall set by the Developer in communication with the land owner, collection of details and reporting to authorities from time to time in order to comply with the Act and Rules.

 

Click here to download the circulars / notification https://rera.karnataka.gov.in/circularPage

Vinay Thyagaraj is a Chartered Accountant and a Law Graduate, founder partner at M/s. Venu & Vinay, Chartered Accountants. You can write on vinay@vnv.ca to seek more clarification