Delhi RERA chairman Anand Kumar has cautioned the real estate industry of stronger scrutiny and punitive action if they do not get their projects registered with RERA.
At an exclusive interactive session organised by CII-Delhi State Sub-Committee on Real Estate in association with India Sotheby’s International Realty, he said that all entities involved in the real development sector, whether it is a development authority like Delhi Development Authority (DDA) or Delhi State Industrial and Infrastructure Development Corporation Ltd (DSIDC) or any other, must get registered with RERA.
“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 sections 59 and 61 of the Act,” Anand Kumar, chairman of the Delhi Real Estate Regulatory Authority (RERA) said in his address at the event.
“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 five years, as per the RERA Act,” he said.
“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,” he added.
Kumar also clarified on the recent amendment made in the RERA Act regarding mandatory registration of the project.
He said: “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.”
Amit Goyal, CEO, India Sotheby’s International Realty said that he is particularly excited that the current RERA team is so proactive and fully committed to bringing in the much-needed reforms in the real estate sector.
“It is critical that the clarification order issued in May 2022 on registration of every project on land parcel of 500-plus square metres or eight units, even if any of the conditions are 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,” he said.
Kumar further said that the purpose of the registration is to ensure that the project has the necessary approvals and sanctions. Besides, it also enhances transparency about funds collected from allottees, and the timely completion of the project, among others.
“In many cases, we have observed that a project registered with RERA is more in demand and commands a premium. Homebuyers should also opt for RERA registered projects,” he said.