The chairman of Andhra Pradesh Real Estate Regulatory Authority has reiterated that all housing projects exceeding 500 square metres of land area or having more than eight apartments must compulsorily register with the authority under the provisions of the Real Estate (Regulation and Development) Act 2016.
Chairman A Siva Reddy said strict enforcement measures will be implemented against projects that fail to obtain registration, including heavy penalties and regulatory action.
The announcement was made as part of an awareness initiative to educate both builders and homebuyers about the provisions and benefits of the RERA Act.
Construction Sector Crucial for Economic Growth
Speaking about the importance of the real estate industry, the AP RERA chairman noted that the construction sector is one of the most significant contributors to the economy after agriculture.
According to him, the RERA framework was introduced not only to regulate the sector but also to promote transparency, accountability and growth in the real estate industry.
To ensure effective implementation of the Act, the authority is conducting awareness programmes across Andhra Pradesh to inform developers, buyers and stakeholders about legal obligations under RERA.
Mandatory Registration for Housing Projects
Under the RERA Act, any residential project meeting the following criteria must be registered with the regulatory authority:
Projects with land area more than 500 square metres
Projects with more than eight residential units or apartments
Without RERA registration, developers are not legally permitted to advertise, market, or sell units in a housing project.
The chairman emphasised that mandatory registration helps ensure transparency in project development and protects homebuyers from fraudulent practices.
Penalty of 10% of Project Cost for Non-Registration
The authority has warned that developers who fail to register their projects with AP RERA may face penalties up to 10% of the total project cost.
Such penalties are imposed under the provisions of the RERA Act to ensure compliance and prevent unregulated real estate development.
The authority is closely monitoring projects across the state to identify developments that have not yet completed the registration process.
Special Opportunity for Unregistered Projects
In order to encourage compliance, AP RERA has provided a special window for developers to register their projects.
Unregistered projects are being given an opportunity to complete registration until March 31, with a 50% concession on the applicable penalty amount.
The chairman urged developers to take advantage of this limited-time opportunity and regularise their projects within the stipulated deadline.
This measure aims to bring more real estate developments under the formal regulatory framework of RERA.
Action Against Delayed Projects and Non-Compliance
The chairman also warned that strict action will be taken against developers who fail to deliver projects on time or do not provide promised amenities and facilities.
Homebuyers can file complaints with AP RERA if:
Possession of the apartment is delayed
Promised facilities are not provided
Project timelines mentioned in the agreement are violated
Such complaints will be examined by the authority and appropriate legal action will be taken under the RERA Act.
Importance of Quarterly Progress Reports
Developers are also required to submit Quarterly Progress Reports (QPRs) to the RERA authority.
These reports include details such as:
Construction progress
Status of approvals
Number of units sold
Financial updates related to the project
Submitting regular updates ensures transparency and accountability in the development process and allows buyers to track project progress.
Formation of Apartment Associations After Completion
The AP RERA chairman also highlighted the importance of forming an apartment owners association after project completion.
Once the project is completed:
Developers must establish an apartment association
Common areas and facilities must be handed over to the association
Management of the project must be transferred to the residents
This process ensures proper maintenance and management of residential complexes by the owners themselves.
Agreement Validity and Financial Compliance
Another important aspect mentioned by the authority is the validity of the agreement between the builder and the buyer.
According to AP RERA:
The agreement remains valid for five years after handing over the apartment
RERA registration is necessary for releasing 10% of mortgaged land
Registration is also required for obtaining bank loans for project development
These provisions ensure that projects follow financial discipline and legal compliance throughout their lifecycle.
Need for Awareness Among Builders and Buyers
The AP RERA chairman stressed that awareness of the RERA Act is essential for both developers and homebuyers.
Builders must understand their legal responsibilities, while buyers should verify RERA registration and compliance details before investing in a property.
Such awareness will help strengthen consumer confidence and promote fair practices in the real estate market.
