The Karnataka Real Estate Authority(RERA) is intending to send notices to over 300 project developers who are liable to be penalised for not having registered with RERA before 31 July.
As on Wednesday around 1,100 projects have applied for registration under RERA but over 300 builders have failed to apply for registration.
As per Section 3 of the Real Estate Act, developers were required to register all their ongoing real estate projects on or before July 31. Those developers who failed to register their respective ongoing projects till this date were given a further opportunity to register on or before August 31 and after verification, the project will be registered after paying 100% penalty of the applicable registration amount.
Out of the 1,100 projects registered,only 12 has received approval so far. In a situation where the promoter or the developer consistently defaults or fails to comply with the direction of the Authority with regard to registration, he shall be liable for additional fine of 10% of the estimated cost of the project or imprisonment upto three years or both.
The promoter cannot accept a sum of more than 10 percent of the apartment cost as application fees. For any further payment towards the cost of the apartment, the promoter or developer is required to enter into an Agreement for sale with the allotee.