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Delhi RERA makes registration of real estate projects constructed on more than 500 sq mt land compulsory

The move will result in much-needed relief to homebuyers in Delhi-NCT, usher in transparency in the sector, say experts.

 (Representative image)

(Representative image)

Providing relief to hundreds of buyers, Delhi’s Real Estate Regulatory Authority (RERA) on April 28 made it compulsory for all real estate projects being constructed on over 500 square meters of land to register with the regulator. It also clarified that all projects being developed in the city on an area of more than 500 sq mt in all phases will have to be mandatorily registered with RERA.

So far, RERA rules provided exemption for any development on land measuring up to 500 sq mt, and less than eight apartments, to register with Delhi RERA. This was undoubtedly a grey area. A few judgments of the RERA Authority and appellate tribunals in states other than Delhi had interpreted this as more than 500 sq m or eight units. What this meant is that if a developer was building on a plot of more than 500 sq m, he still found ways to evade a RERA registration by ensuring that the number of units was less than eight.

“Various promoters including builders and developers have expressed doubt before the Authority on whether they are required to register with the Authority if their plot area exceeds 500 sq mt, but the number of apartments proposed to be constructed remain below nine. Most of them appear to be under the impression that no registration is required with RERA if the plot size is either of 500 sq mt or below or they are constructing less than nine units. These impressions are not correct,” the order said.

It also made it clear that “where the real estate project is to be developed in phases, every such phase shall be considered a standalone real estate project, and the promoter shall obtain registration under this Act for each phase separately”.