FAR from the truth
the authority; and (iv) any additional space not counted in the permissible floor space shall also be treated as common areas.” According to the legal provision, thus, developers have to declare as ‘common areas and facilities’ all the areas mentioned above in the deed (instrument through which developers give rights of apartments to buyers) of an apartment. A certified copy of the deed will also have to be given by the developer to the competent authority, ie DDA.
The last stage of a realty transaction in a housing project is execution of the deed, when all facilities are in place, it is very important to have clarity on the pooling policy as it impacts the whole FAR issue, says Amit Jain, whose NGO, Centre for Research and Analysis of Real Estate in India has bought land in the land pooling zone.
“If in DDA’s scheme, community and commercial facili- ties are part of FAR (saleable built- up area), then developers will assume they will be able to utilise more FAR than what will actually be available for them if the Apartment Ownership Act is factored in. This is the whole problem. DDA must clarify to all stakeholders that the developer can’t sell community and commercial facilities. The only saleable built- up area is the apartment in the group housing project.”
A legal officer from DDA’s legal cell throws light on the matter, saying, “According to the Delhi Apartment Ownership Act, except for apartments, everything else in a project is included as its common areas and facilities with an apartment owner getting undivided interest in the same. It’s very clear that the developer can’t sell any facility to anybody.” The official also admitted that the issue had “missed the attention” of DDA officials calculating FAR to be allocated to developers as per the policy.
Investors and developers who have invested in land pooling zones say that if DDA makes things clear at this initial stage, the developers will include the construction and land costs in the price of the apartment and make sure there are no disputes over the matter later.