by THO
A total of 1,124 out of 1,130 luxury flats facing the golf course in Sector 19 B, Dwarka, built by the Delhi Development Authority as part of its pilot project, were sold out since they were announced in October last year — an achievement the land-owning agency has claimed through advertisements over the last couple of months. However, the advertisements also serve as a caveat as the project which was to be readied by Diwali last year is not even registered with the Real Estate Regulatory Authority (Rera) yet, according to documents seen by HT.
The Rera — a body that acts as a tribunal to protect property buyers — certifies projects with a registration number before it can start promotions. The process of certification takes around a month, if all requisites are complete. The builder of the project can apply for the certificationwhile launching the project, before construction.
In October 2022, RERA asked DDA to ensure that its new development projects are registered with RERA. However, the application to get RERA registration for the Dwarka flats was moved only after the first round of auctions held in October 2023.
Over the last 15 days, over 600-odd allottees met DDA officials and also wrote to the lieutenant governor — who serves as the chairperson of DDA — to present their concerns.
Each flat costs ₹2 crore and upward. The allottees have said that while DDA has asked for 75% of the payment by March 30, 2024, the body is nowhere close to handing over possession of the flats — a situation that will consequently put the home-buyers in jeopardy and lead to an imminent financial burden of paying rentals along with bank EMIs. The home-buyers have alleged that the flats were supposed to be delivered by June 30 2024 but continued to be under construction and do not even have the fire NOC yet.
A DDA spokesperson said that all mandatory clearances required as per law will be taken by DDA before possession is handed over.
“The terms and conditions of the scheme were enunciated in the brochure and communicated in advance widely through DDA website as well as the e-tender website of SBI. Sufficient time was provided to bidders to inspect the flats by making onsite visits and to understand the terms and conditions provided in the brochure. To make an informed decision, this was additionally facilitated through housing melas organised at the site, helpdesks at DDA and project sites,” said the spokesperson, asking not to be named.
Also Read: DDA sells 12 of 14 Dwarka penthouses in Delhi via e-auction
“As of date, DDA has received none of the statutory compliance/approvals like RERA approval, completion-cum-occupancy certificate, and fire NOC. There is no clear communication about Delhi Jal Board water supply, gas pipelines and electricity for common areas. We feel DDA is not being honest and we are being cheated. We visit the site every week and there is hardly any progress,” said an allottee who has booked a super HIG flat.
Also Read: DDA launches ₹5 crore duplex penthouses in Dwarka – See Pics
In an order dated December 6, 2023, RERA flagged that DDA was violating Section 3 of the RE (RD) Act, 2026, by advertising the project without registration with the body.
“It has come to the notice of the Authority through newspapers that DDA has already advertised allotment of houses under the project without its registration under the RE (RD) Act, 2016. Section 3 of the Act bars advertisement, marketing, booking, sale or offer for sale of any plot… as the case may be in real estate projects without registration of plots… Therefore, applicants are directed to explain within four weeks, why proceedings should not be initiated against them under Section 59 of the RE (RD) Act, 2016 for violation of Section 3 of the Act,” the order said.
Also Read: Banks to ensure builders comply with RERA norms when handling public money
DDA filed its reply in the second week of December, after which RERA, on March 15, issued a second order marking deficiencies in the form that DDA needed to clarify. It has asked DDA to respond to the second order within a week.
Other allottees added they have already met the DDA vice-chairperson Subhasish Panda and discussed the matter but have not received any reassurance on the completion dates yet.
“The allottees from the first auction received the demand cum allotment letter (DAL) from DDA, asking to deposit 75% of the total amount within 60 days by March 30. If we deposit this amount, which is anywhere between ₹2 crore to ₹3 crore, we will have to continue paying EMIs for a long period, in the absence of clarity from DDA about the date of possession. It will cause an undue financial burden on us,” said a second person who was allotted an HIG flat.
DDA officials added that the agency was making all efforts to complete the project by June 2024 and the allottees will have to pay the remaining 25% only at the time of completion of the project and the flats are ready for possession. The allottees said that if the DDA continues to not provide clarity, they will take up the matter with RERA.
With 11 towers, this gated society in Dwarka has three categories of flats — penthouses, super HIG and HIG. The luxury society has a total of 1,130 flats, which include 14 duplex penthouses, 170 super HIG flats and 946 HIG flats. With two basements, all flats also get two car parking spaces. While the penthouses have four bedrooms, the super HIG has three rooms and a study, and the HIG flats have three bedrooms. There are also four additional towers with 728 EWS flats that will be allotted later. The society has been constructed at a cost of around ₹700 crore. DDA auctioned the flats at a reserve price of ₹5 crore for the penthouses, ₹2.5 crore for the super HIGs and ₹2.02 crore for the HIGs. The construction began in 2014 people were allotted the flats in three e-auctions held between October 2023 and February 2024.
