Delhi builders avoid project registration with regulator

Many builders in Delhi are avoiding project registration with the Real Estate Regulatory Authority despite the regulator making it compulsory where the developed area exceeds 500 square meters, irrespective of the number of apartments built on it, according to activists.

Since Delhi is primarily a market with low-rise buildings, local builders redevelop property and sell the floors independently for as high as ₹30 crore each. After complaints came to light about buyers not getting their property, the RERA, in April 2022, said even low-rise development required registration.

Prior to this, Section 3(2) (a) of the RERA had 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 was less than eight. Using this loophole, many developers in posh colonies of Delhi have been avoiding registrations.- Faizan Haidar