Builders to pay processing fees: HRERA Gurugram


Real Estate Regulation and Development Act, 2016 is one of the recent Acts passed and implemented by the Indian Legislature. The act is still at a nascent stage and is full of ambiguities. The legislature though in order to leave room for adaptability for the newly implemented Authorities made provisions as to the effect of forming regulations and rules.

State Government’s though have passed rules in their states but there was still power and room for making regulations by the Authorities. In light of the same the Haryana Real Estate Regulatory, Gururgram has passed regulation with regard to processing fees. Haryana Real Estate Regulation and Development rules, 2017 under Schedule-I already prescribe the fees to be paid by the promoter/builder in case of registration of the Real Estate project with the RERA Authority which is a mandate under Section-3 of the Act.

The Gurugram Authority has made a regulation above and beyond the stated rules which talks about a new payment which is processing fees for registration of Real Estate Projects. The said fees are to be paid by the builder/promoter above and beyond the registration fees. The regulation passed by the Authority states “The promoter is required to pay a processing fee for scrutiny of application of registration of real estate project in addition to the prescribed project registration fee along with its application for registration of real estate project under section 4 of the Act read with rule 3 of the Rules. The processing fee will be levied @ Rs 10. per square meters on the gross area of the plotted colony and in case of group housing, commercial and IT, the processing fees will be on the proposed FAR. The processing fees are non-refundable and the same is liable to be forfeited in case of rejection/withdrawal of application for the registration of the real estate project“

Such move by the Authority clearly creates a double obligation and liability on the builder/promoters. The rules passed by the State of Haryana already lays down the amount to be paid by the builder/promoter for registration and such above and beyond charge is wrong and is an unnecessary step in order to vex the builder/promoter.

Disclaimer – Please note that the above articles is based on the interpretation of related laws and judicial pronouncement which may differ from person to person. The reader are expected to take the expert opinion on the matter.

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