BENGALURU: The State Real Estate Regulatory Authority (RERA) will be sending notices to 300 project developers who are liable to be penalised for not having registered with RERA before July 31.
Karnataka RERA Secretary Vinothpriya R made the announcement, here on Wednesday. “After giving them seven days to explain their reasons for late registration, penalty will be levied. Under the Act, upto 10 per cent of the project’s cost can be levied as penalty after a committee decides upon the matter,” Vinothpriya told Express.
Around 1,100 projects have applied for registration as on Wednesday evening, under Real Estate Regulation Act, which is exclusive of 300 agents who have also applied for registration.
“As per Section 3 of the Act, all promoters ought to have got registered their ongoing real estate projects on or before July 31. Those promoters/developers who have failed to register their respective ongoing projects have to register on or before 31 August and after verification, the project will be registered with 100 per cent penalty of the applicable registration amount,” said a public notice issued, here on Monday.
Of the 1,100 projects registered, only 12 have received approval. A list of 55 defaulters who have been sent notices has been displayed on the RERA website. As many as 977 out of 1,100 project applicants who had applied before August 24 is also up on the site. Moreover, 273 agent applications were received before August 24. Out of them only, 64 have been approved so far.
In case, the promoter/developer consistently defaults or does not comply with the directions of the Authority with regard to registration, he shall be liable to additional fine of 10 per cent of the estimated cost of the project or imprisonment of up to three years or both.
The promoter cannot accept a sum more than 10 per cent of the apartment cost as application fees.
For any further collection towards the apartment cost, the promoter/developer is required to enter into an Agreement for Sale with the allottee.