The Andhra Pradesh Real Estate Regulatory Authority (AP-RERA) has imposed penalties on many builders across Andhra Pradesh for not filing quarterly returns before the deadline expired. Many builders in Andhra Pradesh have either slowed the pace of construction or halted their projects mid-way due to the rising cost of raw materials required for construction, the penalties being imposed on the builders is a major setback according to developers as they now have to face more financial troubles.
Most projects under development in the areas of Vizianagaram, Srikakulam and surrounding areas have been shelved by developers due to steep material costs & procurement costs. More than 600 builders in the state were served with notices for not filing quarterly returns as per AP-RERA Act 2016. The penalties dished out by the AP-RERA body varied from ₹25 lakhs to ₹1 crore and was decided based on total project cost. The real-estate regulatory body has specified that realtors who build more than 8 apartments are also required to file returns which detail the current status of the project.
According to the builders who have received these notices & penalised by AP-RERA, the violations they have been warned for are termed as ‘technical’ violations and differ from the ‘serious’ violation which could affect their licenses. CREDAI-AP General Secretary K. Subhash Chandra Bose said the association has spoken to AP-RERA Chairperson Y. Srilakshmi & member C. Srinivasa Rao to review the notices served to the builders as the construction & real-estate industry is suffering economic crisis due to material costs & is still recovering from the impact of the previous 2 waves of Covid-19 pandemic.
“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 requested RERA officials to view the violation was only technical and it would not have any impact on the quality in construction activity,” said Mr. Bose. A delegation of officials from the Confederation of Real-Estate Developers Association of India (CREDAI) AP will hold a meeting with top RERA officials in Vijayawada to discuss and elaborate on the problems being faced by the construction industry & builders in AP.