Karnataka RERA rules builders cannot pass pre-handover costs to buyers
What happened
The Karnataka Real Estate Regulatory Authority issued a decision stating that builders cannot transfer certain project costs to buyers before property possession. This ruling specifically addresses charges like GST on Bangalore Water Supply and Sewerage Board bills. Farook Mahmood welcomed the ruling, noting it defines pre-handover statutory costs as the builder’s liability.
From indiatimes.com
Why it matters
The decision provides buyers with greater clarity regarding their financial obligations for new flats. For developers, the ruling requires maintaining transparent accounts and tracking statutory dues, effectively shifting the liability for certain pre-handover costs to the builders.
From indiatimes.com
Who's involved
- Farook MahmoodPresident emeritus of Bangalore Realtors Association of India who welcomed the accountability step
- KarnatakaThe state where the regulatory authority operates
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Prestige GroupSpeculative
The company might face changes in costs and compliance requirements as the ruling shifts pre-handover statutory costs from buyers to developers
- Farook MahmoodSpeculative
The individual might face new compliance and cost burdens on the real estate sector he represents
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The entities involved
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Bengaluru
capital city of Karnataka state in India