THIRUVANANTHAPURAM: Even as a chairman has been appointed for the proposed Kerala Real Estate Regulatory Authority to deal with unfair business practices of builders, it may take quite a long time for the authority to start functioning as other members of the authority as well as appellate tribunal are yet to be announced.
Though the government had announced the setting up of the authority a couple of years back, further steps have been progressing at a snail’s pace. The- proposed authority with quasi- judicial powers can impose heavy penalties on builders in case of malpractices in construction.
The Kerala Real Estate (Development and Regulation) Ordinance was promulgated earlier this year. It is expected to be introduced in the upcoming Assembly session. Former chief town planner S. Ajayakumar was recently appointed as the chairman of the authority.
For the authority to start functioning, two more members with experience in urban affairs and general administration will have to be appointed. Moreover, the appellate authority headed by a sitting or retired High Court judge and two other members need to be constituted and rules framed. Government nod for at least 35 to 40 staff for the authority was also pending. Office space for the authority and other related facilities are also pending.
Mr. Ajayakumar said the main objective of the authority would be to ensure transparency in the construction sector.
All real estate projects with above 25 cents of land or over 10,000 square feet carpet area or more that 12 individual units would come under the purview of the authority.
Builders will have to produce all documents, including agreements with clients, with the authority. In case of any violations, penalty of around 10 per cent of the project cost could be ordered by the authority, which will have quasi-judicial powers , he said.
The authority is being set up at a time when construction of buildings with investments to the tune of about Rs. 2,000 crore have been remaining idle in the state owing to disputes between clients and builders, sources in the sector pointed out.
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