Why Are Many Delhi Real Estate Developers Avoiding Project Registrations with RERA?

Delhi Real Estate Developers Avoiding Project Registrations with RERA

New Delhi:

According to reports from the Delhi real estate market, many developers in Delhi are avoiding registering their projects with the Real Estate Regulatory Authority (RERA), despite the requirement that it be done if the developed area exceeds 500 square metres, regardless of the number of apartments built on the land.

Since Delhi is predominantly a low-rise construction market, local developers renovate properties and sell individual floors for as much as 30 crore apiece.In April 2022, after concerns about purchasers not receiving their home, the RERA mandated that even low-rise projects be registered.

Prior to this change, Section 3(2) (a) of the RERA exempted developers from registering if the projected development area was less than 500 square metres or if the number of proposed flats was fewer than eight. Using this loophole, several developers in upscale Delhi colonies have avoided registrations.

As there is no one to monitor the construction work, it seems that the situation on the ground has not changed following the order. Several under-construction buildings in West-end, Vasant Vihar, Anand Lok, and Panchsheel Park are being built without RERA registration, even though the site size is much higher than 500 square metres, according to trustworthy sources in the Delhi real estate business.

Conclusion:

Delhi only has 81 registered real estate projects, which is one of the lowest RERA registrations in India.