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Andhra Pradesh's RERA has directed all housing projects exceeding 500 square metres or having more than eight apartments to register with the authority before marketing or sales. This step is aimed at increasing transparency and safeguarding homebuyers interests. Non-compliant projects face penalties up to 10% of the project cost, though a transitional window allows unregistered projects to complete registration by the end of this month with a 50% penalty reduction. Builders are also required to submit quarterly progress reports, establish apartment associations, and comply with RERA norms for financial approvals and legal protection.
The Andhra Pradesh Real Estate Regulatory Authority (RERA) has mandated that all housing projects in the state covering more than 500 square metres or consisting of over eight apartments must obtain registration with the authority. The chairman of AP RERA, A Siva Reddy, highlighted that this move is intended to protect homebuyers and promote transparency within the construction sector, which is one of the state's key economic areas after agriculture. Advertisement
The authority emphasised that projects failing to register under RERA will incur a penalty of 10% of the total project cost. To support compliance, a transitional provision allows developers of unregistered projects to complete registration by the end of this month and benefit from a 50% reduction in the penalty. This approach is aimed at encouraging builders to align with RERA norms without facing full financial penalties immediately.
In addition to registration, developers must submit quarterly progress reports through the RERA portal. Once construction is complete, they are required to establish apartment owners associations and hand over the completed projects to these entities. Agreements under RERA remain valid for five years after the handover. The registration process is also necessary for certain financial procedures, including the release of 10% of mortgaged land and obtaining bank loans for project completion.
The authority further clarified that if a project is delayed or promised facilities are not delivered as per the agreement, action can be taken against developers based on complaints received under the RERA Act. Reddy advised both builders and homebuyers to stay informed about the Act to ensure effective implementation and compliance. Awareness programs are also being conducted across the state to educate stakeholders about RERA regulations and their obligations.
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