Imposition of Penalties for unregistered projects by APRERA

Imposition of Penalties for unregistered projects by APRERA
  • General
  • Thursday 27th June 2019
  • Author: Shreya Uppal

Highlights

  • A circular has been issued by APRERA to impose penalties on unregistered projects. As per Section 3 of the RERA Act, 2016 all the real estate projects from 01/05/2017 including ongoing projects which are in an extent of more than 500 sq. mtrs. or have more than eight units have to be registered with the authority.

  • Therefore as per the provisions of Section 59 (1) of the Real Estate (Regulation and Development) Act, 2016, if any promoter contravenes the provisions of Section 3, he shall be liable to a penalty which may extend upto 10% of the estimated cost of the Real estate project as determined by the authority.

A circular has been issued by APRERA to impose penalties on unregistered projects. As per Section 3 of the RERA Act, 2016 all the real estate projects from 01/05/2017 including ongoing projects which are in an extent of more than 500 sq. mtrs. or have more than eight units have to be registered with the authority.
Therefore as per the provisions of Section 59 (1) of the Real Estate (Regulation and Development) Act, 2016, if any promoter contravenes the provisions of Section 3, he shall be liable to a penalty which may extend upto 10% of the estimated cost of the Real estate project as determined by the authority. So, all the projects coming under this purview need to be registered. Recently, in an APRERA meeting held on 15/05/2019 the following procedure has been approved to levy fees and penalty.

Procedure to impose penalty:
1. All the projects for which permits have been granted from 1.1.2017 to 15.04.2019 have to upload their applications for registration with APRERA before 31/05/2019. If they do so, the fee may be levied as per the schedule of rates approved by the Government vide G.O. Ms.No. 642 MA dt. 12/09/2017.
2. If any promoter files online applications after 01/06/2019 and before 30/06/2019 they have to pay the actual fees as per the G.O. + 25% of the extra fee as a penalty.
3. If they upload their applications after 01/07/2019 and before 30/7/2019 they have to upload their applications along with the actual fee + 50% of the extra fee as a penalty.
4. If they upload their applications after 01/08/2019 and before 31/08/2019 they have to upload their application along with actual fee +100% extra on the fee as a penalty.

Fees policy for the projects after 15/04/2019:
1. All the promoters have to file online applications within 45 days from the date of approval of building/ layout plans. If they apply within 45 days, the fee may be levied as per the schedule of rates approved by the Government vide G.O. Ms. No. 642 MA dt. 12/09/2017.
2. If any promoter file online applications after 45 days and before 75 days after approval of plan then they have to pay the actual fees as per the G.O. + 25% extra fee penalty.
3. If any promoter files online applications after 75 days and before 105 days after approval of plan they have to pay actual fees +50% extra fee as a penalty.
4. If any promoter files online applications after 105 days and before 135 days they have to pay the actual fee + 100% extra fee as a penalty.

Therefore if any promoter who has not submitted his application to register his project after 31/08/2019 for the penalty schedule mentioned above and after 135 days from the date of approval of building/ layout plan for the fees policy schedule mentioned above, stringent actions as per Section 59 (2) of the Act shall be taken against the said promoter and shall be liable to penalty which may extend upto 10% of the estimated cost of the Real estate project as determined by the authority.
For Project Registration, Click here.

Have Questions on RERA ? Have free discussion on email .