Karnataka High Court stays application of RERA norms for BDA projects for which land acquisition notifications were issued prior to May, 2017

Key points

• The High Court of Karnataka has stayed the operation and applicability of the Real Estate (Regulation and Development) Act, 2016, (RERA) to certain residential layouts and housing scheme projects undertaken by the Bangalore Development Authority (BDA) for which preliminary notifications for acquiring lands were issued prior to the commencement of the RERA framework.
• Justice Suraj Govindaraj passed the interim order on a petition filed by the BDA challenging the applicability of RERA provisions to its development activities carried out under the BDA Act and more particularly for the projects for which land acquisitions process had commenced prior to enforcement of the RERA.
• Subject to uncertainties Pointing out that the BDA undertakes a large-scale formation of layouts based on statutory land acquisition processes, which are often subject to uncertainties relating to timing, possession, and completion of acquisition proceedings, it was argued on its behalf that treating the BDA’s projects as “ongoing...