Promoter fee structure for RERA in GUJARAT

Promoter fee structure for RERA in GUJARAT
  • Wednesday 4th October 2017
  • Author: Yash Verma

Highlights

  • Gujarat notified the final rules on May 4, 2017.

  • the RERA Authority of Gujarat was not formed until early June, which almost delayed the registrations by more than a month in the state.

  • The Gujarat RERA Authority provided a website for conducting online registrations of projects as well as real estate agents all over the state.

  • The Authority recently announced a penalty of an amount equivalent to the registration fee for all the projects registering in the month of October 2017.

The Real Estate (Regulation and Development) Act was executed by Central Government in March 2016 and was to be notified by all the states of the Country before May 2017. However, the scenario was completely different as most of the states did not notify the final rules of the Act and did not form RERA Authorities as well. The registrations for RERA had to start from 1st May 2017, which got delayed due to the absence of RERA rules and Authorities. Gujarat notified the final rules on May 4, 2017. But, the RERA Authority of Gujarat was not formed until early June, which almost delayed the registrations by more than a month in the state. The buyers also complained to the Government for diluting the rules of the Central’s RERA Act, which benefited the promoters in escaping the jail term for non-compliance by paying only 5% of the project cost.

Promoters need to register all the ongoing projects and projects which have not obtained the completion certificate before May 1, 2017 with RERA. The fee for the same has to be paid according to the area and type of project.

The promoter shall pay a registration fee at the time of application for registration by way of a demand draft drawn on any scheduled bank, for a sum calculated at the rate of :

  1. In case of group housing projectRs 5 per square meter for projects where the area of land proposed to be developed does not exceed 1,000 square meters; or Rs 10 per square meter for projects where the area of land proposed to be developed exceeds 1,000 square meters, but shall not be more than Rs 5 lacs.
  2. In case of mixed development (residential and commercial) projects Rs 10 per square meter for projects where the area of land proposed to be developed does not exceed 1,000 square meters; or Rs 15 per square meter for projects where the area of land proposed to be developed exceeds 1,000 square meters, but shall not be more than Rs 7 lacs.
  3. In case of commercial projects Rs 20 per square meter for projects where the area of land proposed to be developed does not exceed 1,000 square meters; or Rs 25 per square meter for projects where the area of land proposed to be developed exceeds 1,000 square meters, but shall not be more than Rs 10 lacs.
  4. In case of plotted development projectsRs 5 per square meter, but shall not be more than Rs 2 lacs.

On withdrawal of the application for registration within 30 days of applying, the Authority will retain 10% of the registration fee or Rs 50,000, whichever will be more, as processing fee and the remaining amount will be refunded to the promoter.

The Gujarat RERA Authority also provided a website for conducting online registrations of projects as well as real estate agents all over the state. However, even after providing some extra time to the developers for registration of their projects, there are a lot of projects that have not applied yet. The Authority recently announced a penalty of an amount equivalent to the registration fee for all the projects registering in the month of October 2017. This penalty will also be doubled for the month of November. 



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