AP RERA Chairman Mandates Registration for Major Housing Projects
In a significant move to regulate the real estate sector, Andhra Pradesh Real Estate Regulatory Authority (AP RERA) Chairman A Siva Reddy has issued a directive requiring all housing projects in the state to register with the authority. This mandate applies specifically to projects with an area of 500 square metres or more, or those comprising more than eight apartments. The announcement was made during awareness programs conducted across Andhra Pradesh, highlighting the critical role of the construction sector as the second most important economic driver after agriculture.
Penalty Subsidy Offered for Timely Registration
To encourage compliance, Reddy revealed that projects failing to obtain RERA registration will face a penalty equivalent to 10% of the total project cost. However, in a concessionary measure, unregistered projects are being given an opportunity to register until March 31 with a 50% subsidy on the penalty amount. "I urge everyone to utilise this opportunity," Reddy emphasized, stressing that the RERA Act was established to foster development in the construction sector while safeguarding the interests of homebuyers.
Key Provisions and Requirements Under RERA
Reddy outlined several essential requirements for effective implementation of the Act. Builders must register their projects, submit quarterly progress reports, and upon completion, establish an apartment association to which the project is handed over. The agreement remains valid for five years post-handover. Additionally, RERA registration is mandatory for releasing 10% of mortgaged land or securing bank loans for projects. "For effective implementation, it is necessary to register projects, submit quarterly reports, and, after completion, establish an apartment association and hand over the project to it," he stated.
Consumer Protection and Enforcement Measures
The chairman warned that action will be taken under the RERA Act based on complaints if a project is not completed as per the agreement or if promised facilities are not provided. He advised both builders and buyers to gain proper awareness of the Act to ensure compliance and protection. "I advise both builders and buyers to have proper awareness of the Act. The Act was created to promote the development of the construction sector and to protect and ensure the welfare of homebuyers," Reddy added, underscoring the dual focus on sector growth and consumer welfare.
This initiative aims to bring transparency and accountability to Andhra Pradesh's real estate market, aligning with national efforts to regulate the industry through RERA frameworks.
