The Real Estate Regulatory Authority (RERA) of Rajasthan has decided to impose a penalty on developers who have not registered their ongoing project with regulatory authority till the extended deadline of August 31. The amount of penalty for the defaulting developers will be 2% of project cost.
The decision was taken after examining the amount of penalty imposed by other states to maintain uniformity.
A senior official at RERA said, “Till September 30, the developers who have not registered their ongoing projects with RERA can register after depositing penalty of 2% of project cost or 10 times of registration fee, whichever is more.” After September 30, the regulatory authority will significantly increase the amount of penalty to 10% of the project cost and registration fee on developers to register their ongoing projects with RERA.
Another official said that while Maharastra regulatory authority has not yet decided amount of penalty to be imposed on developers, the Uttar Pradesh government is charging 2% of total project cost.
Gopal Das Gupta, chairman, CREDAI Rajasthan said, “Majority of genuine and serious builders have registered their ongoing projects with RERA. However, the government should provide relaxation to those who have not registered yet. This would increase the burden manifolds on developers and ultimately the additional cost will be taken from the buyers.”
As per section 3 of RERA Act, 2016 developers were given 90 days to register once the Act came into effect on May 1 in the state. Chief minister Vasundhara Raje launched the RERA website on June 1. It became compulsory for all the builders and real estate agents to register on the website till July 31. This timeline was given an extension of one more month i.e. till August 31, after depositing Rs 50 per square metre. It is the request by large number of developers that led to extension of timeline for registration with regulatory authority.
As majority of developers have registered their ongoing projects in the state with (RERA), the residents can heave a sigh of relief . Now, the builders will be under the radar of the regulatory authority.
The consumers wishing to register their complaints with the regulatory authority can do so after seeing the registered project profile on the RERA online portal, in case they feel duped. Those who have booked their flats in a residential complex and their developer has not registered on portal can also inform the authority.
The existing practice of selling flats on the basis of vague super built-up area will also come to an end as the new law makes it unlawful. Developers will now need to define the carpet area. Moreover, it will be obligatory to provide the details of the projects online. “Any violation like increase in the size of apartments, change in layout and construction of additional towers in a project without taking consent from 70% of the allottees can lead to cancellation of registration,” the official added.