Since Delhi is primarily a market with low-rise buildings, local builders redevelop property and sell the floors independently for as high as Rs 30 crore each.
After complaints came to light about buyers not getting their property, the RERA, in April 2022, said even low-rise development required registration.
Prior to this, Section 3(2) (a) of the RERA had provided for an exemption from registration if the land proposed to be developed was less than 500 square meters or the number of apartments proposed to be developed was less than eight. Using this loophole, many developers in posh colonies of Delhi have been avoiding registrations.
“However, the situation remains the same after the order as there is no one to check the construction activity. Several under-construction buildings in West-end, Vasant Vihar, Anand Lok and Panchsheel Park are being constructed without RERA registration even when the plot size is much larger than 500 square meters,” said BS Vohra, a right-to-information activist.
“Since they have made it mandatory, the RERA should ensure that the rule is being followed,” Vohra said.
The RERA chief could not be reached for comment.The whole of Delhi has only 81 registered projects, one of the lowest in the country.
Multiple builders in South Delhi with 800-1,000 sq metre plots haven’t registered their projects with the RERA.
“We need to push for organised development in Delhi. There are no major projects in Delhi while Noida and Gurgaon are benefiting because of organised development,” said Harsh V Bansal, convenor of the CII-Delhi sub-committee on real estate, urban development and infrastructure.
The Delhi RERA had threatened to levy a penalty which could amount to 10% of the estimated cost of the real estate project if the RERA guidelines were not followed.
The purpose of registration is to ensure transparency with regard to funds collected from the allottees, the completion and conveyancing of the property in favour of the allottees, and to ensure that the project has the necessary approvals and sanctions.
Many properties in Delhi’s posh colonies are worth Rs 20-100 crore. The existing owners, mostly elderly people and NRIs, either sell or collaborate with developers.
“The authority also advises the general public not to make any investment by booking or purchasing any residential or commercial unit/space or plot in any real estate project falling under any one of the categories,” the RERA had said in its order.
