Penalties under RERA across States

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In a bid to expedite the registration of realty projects under RERA, Maharashtra and Uttar Pradesh have imposed several penalties on developers who failed to list their projects with the state’s regulator. 99acres.com takes a closer look at the action that will be taken against defaulters who flout the norms.

All developers, builders and brokers and ongoing realty projects were mandated to register with the real estate regulatory authority until July 31, 2017 according to Real Estate (Regulation and Development) Act (RERA) 2016 rules.

However, while several developers rushed to register within the stipulated time, many failed to meet the deadline. Some of the States are delayed in launching their websites for project registration.

Taking cognizance of the situation, Uttar Pradesh, Gujarat and Maharashtra were among the first States to tighten the noose on defaulters and announced a penalty clause for late registration. Although the penalties were not too high initially, the government will take strict action in future if developers fail to register within the extension provided.

Here is the list of penalties imposed by different States:

Telangana

The Telangana Real Estate Regulatory Authority (Telangana RERA) has decided to impose a strict penalty of Rs 1 lakh on projects registered with the Authority between 16th December and 31st December 2018. Until 15th December, the Authority imposed Rs 50,000 as a penalty for developers registering their ongoing projects under the Act. 

Bihar

The Bihar Real Estate Regulatory Authority (Bihar RERA) has revised the registration deadline along with a penalty. This time, the regulatory authority has decided to impose a penalty of Rs 4 lakh or 400 percent of the registration amount, whichever is higher for all ongoing residential projects covering area of 1,000 sq m getting registered under the Act post-October 1, 2018. For residential projects with area over 1,000 sq m, and commercial projects, the Authority will charge a late fee of Rs 5 lakh or 500 percent of the registration amount.

Till September 30, all developers registering their projects with the regulatory authority will have to pay Rs 4 lakh or 400 percent of the registration amount.

Earlier, the Authority imposed a penalty of Rs 3 lakh or 300 percent of the registration amount on builders for late registration with effect from June 1, 2018. At first, the BiharRERA had imposed Rs 1 lakh or 100 percent of the registration fee, whichever is higher, on developers registering their projects in the month of May 2018.

Goa

The Goa Real Estate Regulatory Authority (Goa RERA) has raised the penalty for those registering their projects under the Act to Rs 3 lakh from July 2, 2018 to October 1, 2018. Earlier, Rs 2 lakh was imposed as the penalty for developers registering their projects until July 1, 2018. Before this, the Authority had imposed a sum of Rs 1 lakh as the penalty for developers registering their projects till April 30, 2018.

It is to be noted that the Authority had set the deadline for project registration till March 23, 2018 without any penalty. It was found that most of the developers did not register themselves and their respective projects with the regulatory authority within the stipulated time. Considering this, the Authority had first imposed a fine of Rs 50,000 for such errant developers till March 31, 2018.

Gujarat

The Gujarat Real Estate Regulatory Authority (Gujarat RERA) has now revised the penalty charges for developers registering their ongoing realty projects under the Real Estate (Regulation and Development) Act (RERA) post-December 31, 2017. The penalty has been raised to 2.5 times the registration fee for the properties registering under the Act. 

Earlier, the State's regulatory authority had raised the penalty to twice the registration fee for the properties registering their ongoing projects under the Act from November 30 till December 31, 2017.

The Gujarat RERA had decided to impose penalty charges for developers registering their ongoing projects under the Act post-October 1. A fine equivalent to the registration fee for the properties was charged on projects registering between October 1 and 31. However, no penalty was charged for developers registering their projects till September 30.

Rajasthan

The Rajasthan Real Estate Regulatory Authority (Rajasthan RERA) has raised the penalty on non-registration of real estate projects with RERA from 2 percent to 10 percent. The new penalty norm is applicable from October 1 onwards.

Earlier, the Authority had imposed two percent of the project cost or 10 times the registration fee, whichever is higher, as penalty for developers registering their projects post August 31 till September 30, 2017. 

Maharashtra

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has decided to double the penalty charges for developers registering their ongoing projects under the Real Estate (Regulation and Development) Act (RERA) between September 1 and September 30. A penalty amounting to Rs 2 lakh or an amount equivalent to double the registration fee, whichever is higher, would be levied on applications received during this period.

Earlier, MahaRERA had announced a penalty of Rs 1 lakh or an amount equivalent to the registration fee, whichever is higher, for projects' applications received from August 16 till August 31.

The state regulator has registered about 13,000 ongoing projects till date. Apart from projects, over 10,000 agents have been granted with RERA certificates.

Uttar Pradesh

The Uttar Pradesh government had already extended the deadline for project registration until August 15, 2017. The State government imposed the fine on developers registering their projects from August 16 onwards.

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

Karnataka

The Karnataka government has imposed a penalty of Rs 10,000 per day for agents or up to 10 percent of the cost of the project or three years of imprisonment for builders/agents selling or advertising projects without RERA registration.

Please note that the data published here is based on industry sources and news report and was last updated on 17th December 2018.

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  • Comments
  • Mayuresh September 28, 20177:40 pm

    Very good & informative Article. thank you for posting.

    Reply
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