Indian_Real_Estate_Law (2)

Indian Real Estate Laws 42
sold to the allottees as per the layout plan.
(5) For projects that are ongoing and have
not received completion certificate on the date
of commencement of the Act, the promoter
shall, within a period of three months of the
application for registration of the project with
the Authority, deposit in the separate bank
account, seventy per cent. of the amounts
already realized from the allottees, which
have not been utilized for construction of the
project or the land cost for the project as required
under sub-clause (D) of clause (1) of
sub-section (2) of section 4, which shall be
used for the purposes specified therein:
Provided that if the receivable of the ongoing
project is less than the estimated cost of
balance construction, then the promoter shall
deposit 100 per cent of the amounts to be realised
in the separate account.
2.2.3 Withdrawal of sums deposited
in separate bank
account
5. (1) For the purpose of sub-clause (D) of
clause (1) of sub section (2) of section 4 of the
Act, the land cost means,-
(i) the costs incurred by the promoter for
acquisition of ownership and title of the land
parcels for the real estate project as an outright
purchase lease etc., or the Guidance
Value in accordance with section 45-B of the
Karnataka Stamp Act 1957 relevant on the
date of registration of the real estate project
whichever is higher;
(ii) amount paid for acquisition/ purchase
of TDR etc.,
(iii) amount paid to the competent Authority
for project approval, No objection certificates,
stamps duty, transfer charges, registration
charges, conversion charges, change,
taxes, statuary payments to state and central
Government.
(2) For the purpose of sub-clause(D) of
Clause(l) of sub-section (2) of Section 4 of the
Act, the “Cost of Construction” means,-
The cost of construction shall include all
such costs, incurred by the promoter towards
on-site and off-site expenditure for the development
of the real estate project including
payment of Taxes, Fees, charges, premiums,
interests etc., to any competent Authority,
or statutory Authority of the Central or
State Government, including interest, paid or
payable to any Financial Institutions including
scheduled banks or non - banking financial
companies etc.,
2.2.4 Grant or rejection of registration
of the project
6. (1) Upon the registration of a project as
per section 5 read with rule 3, the Regulatory
Authority shall issue a registration certificate
with a registration number in Form-C to the
promoter.
(2) In case of rejection of the application as
per section 5, the Authority shall inform the
applicant in Form ‘D’:
Provided that the Authority may grant an
opportunity to the applicant to rectify the defects
in the application within such time period
as may be specified by it.
2.2.5 Extension of registration
of project
7. (1) The registration granted under the Act,
may be extended by the Authority, on an application
made by the promoter in Form ’, in
triplicate, until the application procedure is
made web based, within three months prior to
the expiry of the registration granted.
(2) The application for extension of registration
shall be accompanied with a demand
draft or a bankers cheque drawn on any scheduled
bank or Co-operative Bank through online
payment mode, as the case may be, for an
amount equivalent to half the registration fees
as prescribed under sub-rule (3) of rule 3 along
with an explanatory note setting out the reasons
for delay in the completion of the project
and the need for extension of registration for
the project, along with documents supporting
such reasons:
Provided that where the promoter applies
for extension of registration of the project due
to force majeure he shall not be liable to pay
any fee.
2.2 2. RERA KARNATAKA RULES 2017