Since Delhi is primarily a low-rise building market, local builders renovate the property and sell the floors independently for as much as Rs 30 crore each.
Earlier, Section 3(2) (a) of RERA 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 did not exceed eight. Many developers in posh colonies in Delhi have been avoiding registrations using this loophole.
BS Vohra, a right-to-information activist, said that the situation remains the same after the order as there is no one to look over the construction activity. Even when the plot size exceeds 500 square meters, some under-construction buildings in West-end, Vasant Vihar, Anand Lok, and Panchsheel Park are being developed without RERA registration.
Vohra said that the RERA should ensure that the rule is being followed after making it mandatory. The RERA chief could not be reached for comment.
The entire city of Delhi has registered only 81 projects, which is the lowest number in the country. Several builders in South Delhi with plots ranging from 800-1,000 square meters have not registered their projects with the RERA.
The convenor of the CII-Delhi sub-committee on real estate, urban development, and infrastructure, Harsh V Bansal said, “We need to push for organized development in Delhi. There are no major projects in Delhi while Noida and Gurgaon are benefiting from organized development”.
The Delhi RERA had threatened to impose a fine that could be up to 10% of the estimated cost of the real estate project if it was not compliant with RERA guidelines.
The registration procedure should be transparent with regard to the funds received from the purchasers, the completion and conveyance of the property in favor of the allottees, and the assurance that the project has received the required approvals and sanctions.
Many properties in Delhi’s posh colonies are worth Rs 20-100 crore. Older people and NRIs make up the majority of the previous owners who either sold or worked with developers.
The RERA had said in its order that the authority also suggests the general public to avoid investing in any residential or commercial real estate project.