The Andhra Pradesh Real Estate Regulatory Authority (APRERA) had announced that it would levy a penalty of 25 percent or more on promoters who fail to register with the authority. Officials said that projects that were given permission before 15th April and failed to register under the act will be fined from June 1, 2019.
Following an announcement by the Andhra Pradesh Real Estate Regulatory Authority (APRERA) that it would penalise defaulters, over 130 applications have been filed by promoters under the Real Estate (Regulation and Development) Act (RERA). The authority recorded a 30 percent increase in the number of applications regarding registration of projects, within three weeks since the levying of penalties was announced.
In the third week of May, the authority had announced that it had received applications from promoters of merely 470 out of the total 2,600 projects in the State. V Ramnath, Chairman, APRERA, had announced that a penalty of 25 percent or more would be levied on defaulters from June 1, 2019. This penalty is applicable to projects that were given permission before 15th April.
The regulatory authority came into effect in August, last year and was aimed at bringing transparency into the real estate sector. By instituting a regulatory body, the interests of consumers would be protected, by holding builders accountable. But most of the builders had failed to comply with the authority's regulations.
Triggered by the possibility of having to pay such a large amount as penalty, builders rushed to file applications for registering with APRERA. So far, the authority has received around 605 applications. Of these applications, as many as 368 applications have been approved by the regulatory body.