VISAKHAPATNAM: A Siva Reddy, the chairman of AP RERA, has mandated that all housing projects in the state covering an area of 500 square meters or more, or featuring more than eight apartments, must register with the AP RERA Authority.
Reddy highlighted the construction sector’s significance as the second most vital economic sector after agriculture. He mentioned that awareness programs are being conducted statewide to educate both the public and builders about the RERA Act.
“The Act aims to enhance the construction sector’s development while protecting and ensuring homebuyer welfare. Projects that fail to register with RERA will be subjected to a penalty of 10% of the total project cost. An opportunity is being provided for unregistered projects to register by March 31, along with a 50% subsidy on the penalty amount. I encourage everyone to take advantage of this opportunity,” he stated.
Reddy warned that if a project is not completed as promised or if the promised facilities are not provided, action will be taken under the RERA Act based on filed complaints. “I urge both builders and buyers to familiarize themselves with the Act. For effective implementation, it is essential to register projects, submit quarterly reports, and, upon completion, establish an apartment association to whom the project will be handed over. The agreement remains valid for five years post-transfer. RERA registration is also necessary to release 10% of mortgaged land or for securing bank loans for the project,” Reddy explained.
