The Delhi Real Estate Regulatory Authority (Delhi RERA) has introduced a broader scope for registration, now mandating the registration of commercial and retail real estate projects intended for lease, extending beyond those solely for sale. This development comes as a response to cases where leased properties were not properly registered with the authority.
Chairman of Delhi RERA, Anand Kumar, clarified that this is not a new rule but rather a clarification aimed at resolving the issue of unregistered leased properties. The Real Estate (Regulation and Development) Act of 2016 defines “allottees” in Section 2 (d); however, it does not explicitly include individuals who have rented properties. This clarification aligns Delhi RERA’s regulations with similar moves made by the regulatory authorities in Gujarat and Tamil Nadu.
The primary objective behind this clarification is to safeguard the rights of leaseholders and prevent builders from evading regulatory requirements. In some instances, builders have claimed to lease properties but later sold them once construction was completed. By now including leaseholders within the definition of “allottees,” their rights are protected.
Section 2 (d) of the act defines an “allottee” as an individual to whom a plot, apartment, or building has been allotted, sold (whether as freehold or leasehold), or otherwise transferred by the promoter. This definition now encompasses individuals who have acquired property through rental agreements.
In accordance with Section 3 of the act, all real estate projects within the National Capital Territory, including those intended for sale or lease on plots exceeding 500 sq m, must be registered. This requirement extends to projects with more than eight residential or commercial units across all phases and any project unable to obtain a completion certificate before May 1, 2017.
The decision by Delhi RERA has garnered positive feedback from industry experts. Gagan Randev, Executive Director of India Sotheby’s International Realty, views it as a step toward enhancing transparency and strengthening the real estate market. Santhosh Kumar, Vice-Chairman of ANAROCK Group, notes that the real estate law has already brought increased transparency and accountability to the Indian residential segment. Delhi RERA’s move to broaden the scope of RERA registration to encompass commercial and retail projects intended for lease is expected to further boost confidence and transparency in the real estate market.
Delhi RERA’s recent clarification is aimed at ensuring that all real estate projects, including those built for lease, are registered and in compliance with the law, thereby promoting fairness and transparency within the region’s real estate sector.