It has been a double whammy for builders across the State, thanks to the penalties imposed on them by the AP Real Estate and Regulatory Authority (AP-RERA) for not filing quarterly returns in the stipulated time period. 

With the slump in the realty market and skyrocketing of material cost, many builders reportedly shelved their projects in different parts of the State, including Vizianagaram and Srikakulam districts.

They faced another shock in the form of huge penalties imposed by the AP RERA officials.

Over 600 builders across the State received notices for not filing returns as per the AP RERA Act-2016.

The penalties ranged from ?25 lakh to ?1 crore based on the total project cost. The projects taken up in 500 square metres and above will come under RERA’s jurisdiction. The realtors who build more than 8 apartments should also file returns stating the current status of the project.

The authority has powers to impose fines up to 5% of the total value of the property if builders failed to follow RERA rules and regulations, which include usage of inferior quality material, violations in original plan and delay in delivery of the property in accordance to the sale agreement.

However, the current violation of non-filing of returns is said to be ‘technical’ and does not come under ‘serious’ violation, according to builders. Confederation of Real Estate Developers Association of India (CREDAI) AP-chapter General Secretary K. Subhash Chandra Bose said the association urged AP RERA chairperson Y. Srilakshmi and member Ch. Sambasiva Rao to review the notices since the construction industry in the State had been in serious crisis with the impact of COVID-19 for the last two years.

“Many builders were affected by COVID-19 in the third wave. It has led to stoppage of work in many projects. It is the main reason for the delay in filing quarterly returns. We requestedRERA officials to view the violation was only technical and it would not have any impact on the quality in construction activity,” said Bose. According to him, a delegation of CREDAI will meet RERA officials in Vijayawada to explain the problems of the construction industry.