Builders in Delhi have been asked by the Delhi Real Estate Regulatory Authority (D-RERA) to avoid violating rules. The authority has asked them to register their residential or commercial projects with D-RERA immediately.
New Delhi: Authority chairman Anand Kumar in an interview with Moneycontrol that this was not a new rule. “We have merely clarified the issue as several people who were leasing properties were not registering the lease with us,” he said.
The Real Estate (Regulation and Development) Act, 2016 defines the term ‘allottees’ in Section 2 (d). However, it doesn’t include a person who has rented the property. The issue has already been clarified by the RERAs of Gujarat and Tamil Nadu. To provide a similar clarification, we decided to do the same, as explained by Kumar.
“This will help in the long run because it has been seen that some builders circumvent the law by declaring that they are leasing the building but once the structure is complete they surreptitiously sell it. We felt the leaseholders’ rights should be protected. If someone has a lease for 15 years he is an allottee and his rights should be protected,” he added.
The Real Estate Act’s section 2 (d) defines “allottee” as the person who has been given a plot, apartment or building by the promoter through sale, transfer or otherwise. This also includes the person who later acquires the allotment, but it does not include a person who has rented the plot, apartment or building.
Developers of real estate projects in the National Capital Territory are required to register their projects according to Section 3 of the law. This includes any projects being developed for sale or lease on a plot of land larger than 500 sq m, either in part or in full.
If you are developing a real estate project with more than eight units (flats, apartments, floors, shops, commercial or office spaces) for sale or lease, this rule applies to you. This applies to all phases of the project, regardless of the plot size.
Real estate projects that are being developed with an area greater than 500 sq m for sale or lease, as well as all real estate projects that fall into the above categories and did not obtain a completion certificate before May 1, 2017, are required to register with Delhi RERA.
According to Santhosh Kumar, Vice-Chairman of ANAROCK Group, a real estate consultancy, the real estate law is making progress in fulfilling its key functions. Since it was implemented, the law has brought transparency and accountability to the Indian residential market. Delhi RERA’s recent move to expand the registration to include commercial and retail projects for lease will further increase confidence and transparency in the market.
