Penalty Mechanism Introduced for Delayed QPR Submissions by Promoters under AP RERA

Notification/Circular No. – Circular No. P/9/2025

Document Date – April 11, 2025

Applicable Act/Rule – Real Estate (Regulation and Development) Act, 2016; Andhra Pradesh RERA Rules, 2017

Background and Rationale

Under Section 11(1) of the RERA Act, 2016, read with Rule 15(1)(d) of the Andhra Pradesh RERA Rules, 2017, promoters are required to submit Quarterly Progress Reports (QPRs) within seven days of the end of each quarter. These updates are a statutory obligation and essential for ensuring transparency for homebuyers and regulators.

However, it has been observed that several promoters are consistently failing to submit QPRs within the stipulated timeframe. This non-compliance not only delays project transparency but also impairs public trust in the regulatory process.

To correct this lapse and enforce compliance, AP RERA in its 42nd Authority Meeting dated March 28, 2025, resolved to adopt a graded penalty approach and system-based enforcement.

Amendments and their Implementation

The Circular introduces the following procedural steps:

  1. Grace Period (April 16 to May 15, 2025):
    Promoters are given a final window to submit all pending QPRs without facing immediate penalties.
  2. Publication of Defaulters (May 16, 2025):
    A public list of non-compliant promoters will be released on the AP RERA website for stakeholder awareness.
  3. Penalty Enforcement (from May 16, 2025):
    An uninterrupted online link will remain open to allow late submission of QPRs, but now with penalty under Section 61—which can be up to 5% of the project’s estimated cost per missed quarter.
  4. System Lockdown for Chronic Defaulters:
    Promoters who fail to submit QPRs for three consecutive quarters will face system-level restrictions:
    • Their QPR submission link will be disabled.
    • Requests for project modification, extension, or closure will be rejected.

  

Implications and Future Prospects

These changes signal a stricter regulatory stance from AP RERA moving forward. While a grace period has been offered for immediate relief, long-term non-compliance will now trigger tangible restrictions and financial consequences. The decision also sets a precedent for other states to follow a similar compliance-linked service access model.

Promoters are advised to review their QPR history and ensure submission before the end of the grace window. Non-compliance may lead to project-level blacklisting or regulatory intervention.

Conclusion

This circular serves as both a final warning and an operational shift in how AP RERA handles QPR delays. By anchoring enforcement through digital platforms and linking it to statutory powers under Section 61, the Authority ensures that project progress remains visible, verifiable, and trustworthy.

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