Provisions of the Delhi Apartment Ownership Act are likely to make DDA’s land pooling policy unattractive to developers
(Total built-up area)
(Total area) ‘A’ hands over this land to DDA which returns
acres to ‘A’ based on the basic norms of the policy
So the FAR that ‘A’ actually gets is only
This is one issue which needs the urgent attention of all stakeholders in the land pooling scheme – be they Delhi Development Authority (DDA), developers, prospective homebuyers or investors.
Despite laying down norms for land use distribution and development, DDA’s l and pooling policy, notified on September 5, 2013, does not seem to take into account provisions of the Delhi Apartment Ownership Act, 1986. This is obvious from the basic provisions of the scheme, especially for floor area ratio (FAR - saleable built-up area), which looks very attractive on paper but has no clarity on a number of issues which can come in the way of the policy’s implementation.
According to DDA, developers will get a FAR of 4 in zones demarcated for land pooling, but going by calculations and the Apartment Ownership Act So the total built-up area for
‘A’ equals – what will finally come to them is just 1 to 1.3 FAR, which is much less than what DDA is claiming to offer.
While fixing FAR for the land pooling policy, DDA had made it attractive for the builders by including community and commercial facilities in the area ( part of FAR) they would be developing and selling. However, according to the Delhi Apartment Ownership Act, 1986, the community and commercial facilities have to be handed over by the builders to the residents’ welfare association after the project is completed and cannot be sold.
Section 3(J) of the Act, which defines “common areas and facilities” in a multi- storey building makes it clear that parking areas, shopping centres, schools and storage spaces are part of common areas and facilities. Interestingly, Section 3 (j) (vii) also defines common areas and facilities as “such other community and commercial facilities as may be prescribed.”
This 3 ( j ) ( vii) has been further elaborated in Section 3 of The Delhi Apartment Ownership Rules, 1987, which states that “The other common areas and facilities in terms of sub clause (vii) of clause (j) of Section 3 shall be such areas and facilities which are provided on the land earmarked for apartments…” This means that all other facilities that become a part of common area are: “(i) Children’s playing areas, swimming pools, tennis courts, badminton courts, areas providing for other sports facilities; ( ii) community halls for use of apartment owners for marriages or other social functions; (iii) areas available for common use of the apartment owners, forming part of the sanctioned plan, under the bye-laws of