RERA penalties on Developers

As RERA has been implemented and in order to keep it more managed, Maharashtra and Uttar Pradesh took a step to impose some penalties on the developers who are not following the RERA instructions properly and who failed to list their projects with the state’s regulator.

rera penaltiesAccording to Real Estate (Regulation and Development) Act (RERA) 2016 rules, when it came into force, all the developers, brokers, and builders were mandated to register ongoing realty projects with the real estate regulatory authority by July 31. But not all of them managed to follow these rules so several states including Uttar Pradesh, Maharashtra, and Gujarat have announced a penalty clause for late registration to make the procedure impactful. If developers fail to register within the extension provided, the government will take strict action in future but initially, the penalties are not that high.

The list of the penalties imposed by different states:

Uttar Pradesh

The State government imposed the penalty for not registering ongoing projects with authority under the Real Estate (Regulation and Development) Act (RERA) from August 16 onwards as the Uttar Pradesh government had already extended the deadline for project registration until August 15, 2017. The penalties imposed by the Uttar Pradesh government are:

  • Till August 31, 2017, developers registering their projects were liable to pay a penalty of one percent of the overall project cost.
  • The developer was charged five percent of the project cost as penalty till September 15, 2017, if a developer fails to register his project with UP RERA post-August 31.
  • In between September 16-30, 2017, a higher fine of 10 percent was imposed on builders registering with the authority.

Know More about Real Estate Consultants in Noida

Rajasthan

The penalty for not registering ongoing projects with authority under the Real Estate (Regulation and Development) Act (RERA) by Rajasthan Real Estate Regulatory Authority (Rajasthan RERA) has been raised from 2 percent to 10 percent, which is applicable from 1st October.

Goa

The penalty for not registering ongoing projects with authority under the Real Estate (Regulation and Development) Act (RERA) is that the builders will have to pay Rs 2 lakh as the penalty, who all are registering their projects on the RERA portal until July 1, 2018, while initially the penalty for the developers who registered their projects till April 30, 2018, was Rs 1 lakh.

Gujarat

The penalty for not registering ongoing projects with authority under the Real Estate (Regulation and Development) Act (RERA) by Gujarat Real Estate Regulatory Authority (Gujarat RERA) is 2.5 times the registration fee for the properties registering under the Act, posted December 31, 2017.

Maharashtra

The penalty for not registering ongoing projects with authority under the Real Estate (Regulation and Development) Act (RERA) by the Maharashtra Real Estate Regulatory Authority (MahaRERA) has been doubled for the developers registering between September 1 and September 30, it is 2 lakh or an amount equivalent to double the registration fee, whichever is higher, would be levied on applications received during this period.

Karnataka

The penalty for builders/agents selling or advertising projects without RERA registration under the Real Estate (Regulation and Development) Act (RERA) by the Karnataka government is Rs 10,000 per day for agents or up to 10 percent of the cost of the project or three years of imprisonment.

The Telangana government has considering to extend the registration deadline for another 2-3 months after the Goa government had given an extension of three months to builders to register their ongoing projects under RERA.

Leave a Reply

Your email address will not be published. Required fields are marked *