The Real Estate Regulatory Authority for NCT of Delhi or Delhi RERA has widened the ambit of registration for commercial and retail real estate projects to include even those being built for lease and not just for sale.

Authority Chairman Anand Kumar told Moneycontrol that this was not a new rule. “We have merely clarified the issue as several people who were leasing properties were not registering the lease with us.”

While the definition of allottees is outlined in Section 2 (d) of the Real Estate (Regulation and Development) Act, 2016, it does not include a person to whom it has been given on rent. “Since Gujarat and Tamil Nadu RERAs have already clarified this issue, we also decided to do the same,” Kumar explained.

“This will help in the long run because it has been seen that some builders circumvent the law by declaring that they are leasing the building but once the structure is complete they surreptitiously sell it.  We felt the leaseholders’ rights should be protected. If someone has a lease for 15 years he is an allottee and his rights should be protected,” he added.

“Section 2 (d) of the act defines “allottee” in relation to a real estate project as the person to whom a plot, apartment or building, as the case may be, has been allotted, sold (whether as freehold or leasehold) or otherwise transferred by the promoter, and includes the person who subsequently acquires the said allotment through sale, transfer or otherwise but does not include a person to whom such plot, apartment or building, as the case may be, is given on rent.”

As per Section 3 of the act, all real estate projects being developed in the National Capital Territory are compulsorily required to be registered, including those projects being developed, either in part or full, on a plot size of more than 500 sq m for the purpose of sale or lease.

This also applies to real estate projects being developed that have more than eight flats, apartments, floors, shops and commercial or office units in all phases on any size of plot for the purpose of sale or lease.

Also, real estate projects being developed that have an area of more than 500 sq m for the purpose of sale or lease and all real estate projects falling in the above categories for which a completion certificate could not be obtained before May 1, 2017, have to be registered, Delhi RERA said.

“We are glad that Delhi RERA has widened the ambit of RERA registration for commercial and retail projects to include those being built for lease and not just for sale. This adds transparency and strengthens the real estate sector in Delhi.  These reforms hold the potential to significantly enhance the market conditions for both investors and tenants, fostering a more favourable environment,” said Gagan Randev, Executive Director of India Sotheby’s International Realty.

The real estate law is showing ‘real’ progress in fulfilling its key functions, said Santhosh Kumar, Vice-Chairman of ANAROCK Group, a leading real estate consultancy. Since its implementation, the act has brought in more transparency and accountability in the Indian residential segment. And now, the move by Delhi RERA to widen the ambit of RERA registration to include commercial and retail projects intended for lease will further increase confidence and transparency in the market, he said.