Rajasthan RERA wants builders to pay registration fees per size the plot/land

By Realty Quarter Bureau

Developers in the state will have to shell out extra money to register their big projects with Rajasthan Real Estate Regulatory Authority (RERA).

With this, it’s expected that flat and plot prices in many projects would increase as developers would transfer their financial burden to the consumers.

The authority has decided to remove the cap of maximum registration amount. Now, the developers have to pay registration fee as per the size of the plot or land. As a result, the registration fee on big projects would certainly exceed the maximum registration amount.

A senior official at RERA said, “The registration fee of the project will be calculated on the basis of per square meter. The fee will be imposed depending on the size of the plot. At present, we have fixed minimum and maximum registration fee. Even if the plot area is big, the developers have to pay maximum registration fee to register with RERA.”

Official at RERA claimed, the amendment in registration fee is proposed as the amount is less comparatively less than other states. This was resulting in revenue loss for RERA. “The proposal to amend the registration fee amount has been sent to to finance department. The decision will be taken after receiving the approval.”

The move is, however, criticised by the developers, claiming this would add additional burden and increase the project cost.

Gopal Das Gupta, chairman, CREDAI, Rajasthan, said, “We strongly oppose the move and will not deposit the increased registration fee. RERA is a regulatory authority and not a profit making organisation. The consumers would suffer ultimately as cost imposed on developers will be taken by end-users,”

A RERA official said, “For instance, the registration fee is calculated Rs 12 lakh as per size of the plot. The developer has to even pay that to get the project register with RERA,” he said.

Similarly, for the group housing scheme, the authority has fixed that developers launching a project of up to the plot size of 1,000 sqaure metre have to pay Rs 5 per square metre. On plot size above of 1,000 square metre, the authority levies Rs 10 per square metre as registration fee. The maximum is registration fee under this category is Rs 5 lakh. However, now this cap will be removed too.

For the mixed land use (residential and commercial) project fee to register with RERA is Rs 10 per square meter . “No matter , how big the project area is , the RERA has fixed Rs 10 lakh as maximum registration fee. Similarly for commercial projects, registration fee is Rs 20 per square meter. The cap of Rs 10 lakh is fixed for commercial projects too,” said an official.