RES exam question on Planning & Development: most URA may require
Mr Ng converted his shop unit into a restaurant without permission. URA will grant written permission for the change if he pays a civil penalty, after which he will not be prosecuted. The prescribed application fee is $4,000, and the unit is worth $2.4 million. What is the most URA may require?
- A$500,000
- B$200,000
- C$150,000
- D$240,000
Show answer & explanation
Answer
C. $150,000
Explanation
Answer: $150,000. The penalty is capped at the lower of 50 times the prescribed application fee or $150,000.Working:1. 50 x $4,000 = $200,0002. $200,000 is above $150,000, so the cap applies: $150,000Rule: Where an offence appears to have been committed, URA may require a penalty for granting written permission for development, works in a conservation area or subdivision. It is capped at the lower of 50 times the prescribed fee or $150,000, and once it is paid no proceedings under s 12 follow.Source: Planning Act 1998, s 12, s 34(1), s 34(2) and s 34(4), as at 1 October 2026 (sso.agc.gov.sg)
Why the other options are wrong
- $500,000: This is the maximum fine for demolishing a building in a conservation area, not the penalty cap.
- $200,000: This is the uncapped figure. The lower of the two applies.
- $240,000: Takes 10% of the unit's value, which plays no part in the cap.
Study the concept behind this question: Planning Permission, Enforcement & Building Control
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