The YSRCP government in Andhra Pradesh headed by Chief Minister YS Jaganmohan Reddy, which is on a spree on issuing notices asking people to pay Rs 10,000 for OTS (one time settlement scheme) to regularise houses sanctioned to people by previous governments three decades ago, issuing notices to poor who failed to construct houses on plots distributed by YSRCP government, asking people to pay garbage tax, issuing notices to owners of residential and commercial buildings to pay higher property tax etc, is now eyeing builders across the state constructing apartments and residential projects.
The government is issuing notices to builders asking them to pay 5 per cent of the total project cost as penalty for defaulting on filing quarterly returns on the progress of their projects as mandated under AP RERA Act.
Builders who construct eight or more flats in the apartment and builders constructing apartments or residential projects in plots measuring more than 500 sq.yards come under the purview of AP RERA Act.
They have to register their projects with AP RERA and file quarterly returns in online mode disclosing the progress of their projects. However, several builders failed to file online returns due to Covid conditions and other reasons since last year.
Such builders are now receiving notices from the state government asking them to pay a penalty in lakhs of rupees. Builders who are already under deep financial losses due to realty slump in AP following Covid conditions and YSRCP government’s decision on three capitals and other issues, are shocked to receive notices asking them to pay a penalty in lakhs of rupees.
A builder who is constructing an apartment at a cost of Rs 10 crore has to pay a penalty of Rs 50 lakh for failing to file returns. Builders say they will not earn even Rs 50 lakh profit after construction of apartment and sale of all the flats and question how they can pay Rs 50 lakh penalty to state government.
Out of 1,800 projects registered with AP RERA, only 800 builders filed returns. The government issued notices to the remaining 1,000 builders to pay penalties.