Projects Spread On More Than 500 Sq Metres, Must Be Registered: Delhi RERA

Real Estate Regulatory Authority of Delhi on Thursday said all housing and commercial projects being developed on more than 500 square metres of land will require compulsory registration with the state regulator.

In a public notice, Delhi RERA (Real Estate Regulatory Authority) clarified that those projects where the number of flats or apartments or blocks exceeds eight in all phases will also have to be compulsorily registered irrespective of the plot size. Delhi RERA issued the public notice after receiving complaints from home buyers, commercial space and plot buyers that many builders and developers in the city are avoiding registration of their projects under RERA on various pretexts.

The notice said that in the interest of all allottees, including home, commercial space and plot buyers, all projects being developed in the city on an area of more than 500 square metres in all phases will have to be mandatorily registered with RERA. "To illustrate, even if six flats or two floors or four showrooms are being constructed as a real estate project on a 501-square metre plot, it would require registration with RERA, NCT of Delhi ... If nine apartments are being constructed on a 300-square metre plot, it would require registration with RERA Delhi, NCT (National Capital Territory)," the authority said in the public notice.

It further said that if plotting is being done as a real estate project on a land of more than 500 square metres in all phases then also it requires registration with RERA. The public notice said that various developers have expressed doubt on whether they are required to register with RERA, if their plot area exceeds 500 square metres but the number of apartments proposed to be constructed remains below nine. "These impressions are not correct," the public notice said.

Section 3(2) (a) of the Real Estate (Regulation and Development) Act, 2016 gives exemption to projects from registration if the plot or land area is less than 500 square metres or the number of apartments or blocks proposed to be developed is less than eight. Amit Goyal, CEO, India Sotheby's International Realty, hailed the move and said that this order by Delhi RERA was "much-awaited". "We are hopeful that Delhi real estate ecosystem shall be far more transparent and rule-bound going forward. We applaud the Delhi RERA for taking this proactive, much needed step.

We would also appeal the RERA to enforce the model drafts of agreement to sell and other necessary documents. We are delighted with this much awaited order," Goyal said in a statement. He added that the large number of public notices appearing in newspapers of builders duping home owners and buyers, including senior citizens and NRIs, is a stark revelation of the rampant malpractices by builders in the capital city.

"Most of the development in Delhi is limited to four floors per plot or 500 square meters and the builders were using the 'and/or' clause to escape RERA registration. Such builders will now need to register the projects which will offer vastly improved protection to current home owners for redevelopment and to prospective home buyers," he said.

(PTI)