Government of Karnataka has proposed to present a Real Estate bill in the upcoming budget session to reign in housing co-operative societies, with a clause that makes it mandatory for a society that fails to allot a site within 3 years to return the deposit with Bank interest.
This was informed by Minister H.S. Mahadevaprasad in response to a query raised by V.S. Ugrappa in the Legislative Council on Tuesday the 3rd Feb 2015, who said that Co-Operative housing societies were collecting huge share of accounts without allotting sites/plots and there was no accountability.
While the official figures put the total share amount at about Rs. 18K crore, Mr. Ugrappa claimed it crossed Rs. 1 lac crore. Soon to the debate, the other MLCs described housing co-operative societies as “Real Estate Business.”
In response, the minister said that the Real Estate bill will have other features including a single-window agency to clear and monitor housing projects. The societies will also be able to directly acquire land for the projects.