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Saturday, April 1, 2023
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Delhi RERA to act against builders avoiding registration of projects

Several builders in Delhi were avoiding project registration with the Authority despite it being compulsory for developed areas exceeding 500 square meters, irrespective of the number of apartments built on it.

The Real Estate Regulatory Authority (RERA) of Delhi has decided to crack down on builders avoiding registration by conducting surprise checks, chairperson Anand Kumar told.

Several builders in Delhi were avoiding project registration with the Authority despite it being compulsory for developed areas exceeding 500 square meters, irrespective of the number of apartments built on it.

“We have received a number of complaints and will start taking action based on those. In certain cases, where there is no complaint, we will go and check the violations,” Kumar said.

RERA will levy a penalty of up to 5% of the project cost for unregistered projects. From 2017 to 2021, Delhi RERA disposed of about 160 complaints. Last year, it disposed of 150 complaints.

“We got to know that builders are getting the land registered to four different owners by giving them 25% share each and then starting the development so that they don’t come under the ambit of RERA. For example, if a 1,000 square yard land is divided between four owners and then developed, the developed area will not exceed 500 sq. m and the developer will be able to avoid registration,” Kumar said.

To plug this loophole, RERA has urged the Delhi government to not register one land parcel in the name of different owners. Since Delhi is primarily a market with low-rise buildings, local builders redevelop property and sell the floors independently for as high as ₹30 crore each.

After complaints came to light about buyers not getting their property on time, RERA in April 2022 said even low-rise developments require to be registered.

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