FAR from the truth

HT Estates - - HT­ES­TATES -

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.

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