Delhi Rera Chairman Alerts Real Estate Industry on Stronger Scrutiny & Punitive Action on Projects Defying Rera Registration

New Delhi—July 20, 2022: “Anybody who is into the real estate development sector whether it’s a development authority like Delhi Development Authority (DDA) or Delhi State Industrial and Infrastructure Development Corporation Ltd (DSIDC) or any other such organisation. If they are doing plotted development or if they are doing real estate projects, as per section 3, they must get registered with us. And if they do not get registered with us then we have got enough of more power to take action against them under section 59 and 61 of the Act,” said Anand Kumar, chairman of the Delhi Real Estate Regulatory Authority (RERA).

“In fact, we have given our orders and judgement asking DDA to register with us and DDA has gone and appealed against our order. Even if you are building flats from your own funds, what is the end purpose? Is DDA going to keep these flats for themselves? The answer is No. After they complete the building, they are going to sell these flats to the end users i.e. the buyers. Now if DDA delays the project, if the cost escalates, who is going to suffer, the buyer. So, keeping that thing in mind and moreover anybody who hands over a building or apartment or etc, he is responsible to maintain the quality for 5 years, as per the RERA Act. Considering all these DDA must register all their projects with us. So, we have said so in very clear terms and our order is on the website. The development authorities must own it up, own up their responsibilities,” chairman added further.

Delhi RERA chairman, Anand Kumar was addressing stakeholders of Delhi’s real estate sector at an exclusive interactive session organised by CII-Delhi State Sub-Committee on Real Estate in association with India Sotheby’s International Realty, at Le-Meridian hotel, Delhi on July 19.

Chairman also clarified on the recent amendment made in the Act regarding mandatory registration of the project. “It is now mandatory for builders to register projects with RERA where plot area exceeds 500 square metres, regardless of the number of units constructed on it. Similarly, irrespective of the plot size, if the number of units to be constructed on the plot is eight or more, it should get registered,” said Kumar.

“I’m particularly excited that current RERA team is so proactive and fully committed to bringing in the much-needed reforms. It is critical that the clarification order issued in May 2022 on registration of every project on land parcel of 500+ square meters or 8 units, even if any of the condition is met, is implemented, and adopted by all developers working in Delhi’s real estate sector. This is a critical move to protect the consumer and end home buyer,” said Amit Goyal, CEO, India Sotheby’s International Realty.

“We need a healthy mix of end buyers and investors to keep an asset class like real estate buoyant and upbeat. I’m quite hopeful once confidence is instilled back, investors too will start considering allocation of funds into real estate, which has been someway missing for the last 7-8 years,” added Goyal.

The purpose of registration is to ensure that the project has the necessary approvals and sanctions. It enhances transparency about funds collected from allottees, timely completion and so on. “In many cases we have observed that a project registered with RERA is more in demand and commands a premium. Home buyers should also opt for RERA registered projects,” said the chairman.

The other important aspects which the industry must follow in spirit and principle highlighted by the authority members included – the importance of registering the builder buyer agreement under the general agreement on a INR 100 rupee stamp paper for better protection of both parties and the importance of strictly following 70% funds collected from buyers to be kept in an escrow account.

The chairman in no uncertain terms informed the gathering that a heavy penalty will be levied on projects which try and escape RERA registration.

To motivate and encourage promoters and developers to register their projects with RERA, the chairman said that they have taken several measures to ensure a smooth and time bound registration of projects. “We have set a deadline of 30 days, within this deadline we either register a project or communicate the deficiency, so far this deadline has never been breached. If all the papers have been submitted as per the checklist, the RERA approval will be given within two weeks,” said the chairman.

Chairman also gave clarification to various other quarries of the stakeholders and ensured full support to them in order to streamline the processes and requirements, if any. “We welcome all suggestions and concerns of the promoters and other stakeholders. They can write to us wherever and whenever they face issues inregistration of projects or any other requirements. We have also started the work on RERA website upgradation to remove any glitches,” said Chairman.

The issue regarding importance and need of completion certificate was also discussed in detail. “We will urge the government to make the completion certificate a must at the time of property registration, this is very important,” said Kumar.

The discussion was very well received and appreciated by all the stakeholders present and it was a much-awaited session on regulatory framework for Delhi’s real estate sector.