|
Listen SouthDelhiFloors Podcast
|
The success of the recently notified Real Estate (Regulation and Development) Act 2016 hinges on two pillars – the efficiency of the urban local bodies and the real estate regulator. To ensure that the urban local bodies become efficient, the states will need to compile an essential set of laws.
The National Capital Territory (NCT) of Delhi has taken the lead in this regard. The Central Government recently revised the unified building by-laws for Delhi after 33 years. These revised by-laws are aimed at empowering the urban local bodies so that they are able function in a smooth and efficient manner.
Applicability of the revised laws
These by-laws will be applicable in the whole of the NCT of Delhi. However, the major player from the supply side is the Delhi Development Authority (DDA). Even permissions for private housing societies in newer areas, such as Dwarka, are granted by the DDA. So, for all practical purposes, the revised by-laws will affect all private and small-time players that have entered the Delhi real estate sector, and private individuals who want to construct independent houses.
Boon for small-time players
As per the revised by-laws for plot sizes up to 105 sq m (1,130.21 sq ft), an individual will not be required to obtain a sanction for the building plan. A building plan prepared by a qualified architect/engineer, along with their qualifications and the requisite fee, will suffice. This will ease the process for most private individuals who want to construct their own house. They will not have to make the rounds of various offices to obtain the approvals required for their building plans. However, they would have to obtain the necessary clearances from other agencies. The revised by-laws deal with this aspect of constructing a house as well.
Single-window clearance
This was one of the areas on which Union Minister of Urban Development, Housing and Urban Poverty Alleviation Venkaiah Naidu laid emphasis when the Real Estate (Regulation and Development) Bill 2016 was being passed in the Rajya Sabha in March 2016. This very important aspect, before executing a project, has been specifically dealt with in the revised by-laws. Now, an applicant (individual or developer) will need to submit a single online application to the concerned urban local body instead of applying to different agencies, such as the Airports Authority of India, Delhi Jal Board, etc. Similarly, rather than making the required payments to different agencies, a single payment can be made electronically to the concerned urban local body. A system has been put in place so that the urban local body will take approvals from the concerned agencies. The urban local bodies will now be empowered to issue environment clearances for projects where the built-up area is up to 1.50 lakh sq m (16.14 lakh sq ft). Putting a system in place to obtain clearances electronically, at a single location, will simplify the process. While applying for the necessary clearances is a significant factor, collating the right documentation is equally important.
Simpler documentation
Getting the right documentation, especially when dealing with government agencies, has never been easy, even for reputed developers who deal with them regularly. The revised laws have dealt with this grey area as well. The number of documents to be submitted to obtain building permits has been reduced from 40 to 14, and to get the completion-cum-occupancy certificate, from 36 to 9. To ensure that the applicants pay the correct requisite fee for the building permit, the urban local bodies will need to implement an automated online calculator. Simplifying the documentation will ease the process for the applicants and eliminate the need for middlemen and agents. But how fast will the process be with a single-window clearance and simpler documentation in place?
Faster approvals
One of the developers’ major complaints on most forums, apart from having to deal with numerous agencies, is the inordinate delays in getting the required approvals, which, in turn, lead to project delays. However, the situation is likely to change, as the revised by-laws deal with most of the issues that cause such delays. As a start, the need for obtaining permission for the commencement of construction has been removed. Once the building permit is received, construction can start after intimating the concerned urban local body. The time limit for granting building permits has been reduced from 60 days to 30. In cases of low-risk and moderate-risk category buildings, the urban local bodies will need to grant permits within 10–20 days. In the case of low-risk residential buildings (105–500 sq m) and very low-risk godowns of up to 250 sq m (2,690 sq ft), an architect/engineer will be empowered to issue building permits. External agencies will need to grant the necessary approvals / no objection certificates within 10–20 days. With the implementation of a proper time frame for granting the necessary approvals, project delays should no longer plague the sector. A proper time frame for approvals will also help developers plan their projects well and execute them in a more efficient manner. However, with environmental concerns being one of the glaring issues, how will Delhi be after the systems in the by-laws are implemented?
Environment-friendly measures
The rising air pollution in Delhi has been making headlines in the recent past. Among several measures, the Delhi government has come up with the odd–even scheme for private cars to curb the rising air pollution. The revised by-laws have also tried to implement systems that will ensure that Delhi is greener and safer. All buildings on plot areas of more than 105 sq m (1,130.21 sq ft) will have to conform to the mandatory green building norms to obtain the necessary building permit. This means that such projects will need to conform to standards such as water conservation and management, solar energy utilisation, and energy efficiency and management. With Delhi falling in the highly earthquake-prone zone, the new by-laws require measures to ensure safety, such as making provisions for structural design and earthquake disaster mitigation. To ensure that the buildings are aesthetically pleasing and create a vibrant environment, public art will be promoted in built-up areas. The laws have been laid down and look good on paper, but what happens in case any of the applicants feels aggrieved?
Grievance redressal
A grievance redressal system will also be put in place. A grievance redessal committee will be constituted for a period of three years, after which, it will be re-constituted. The decisions of the committee will be final and binding on the concerned parties.
Conclusion
This is one of the first attempts by a state to implement systems that will help the real estate sector function in a smooth manner. The revised by-laws will have a major impact on the sector. From the supply side, they will help developers plan better and complete projects on time, in keeping with quality standards. This will help develop confidence among consumers, who have so far preferred to stay away from the sector. By bringing the information and the clearance window to the applicants via an online system, the revised by-laws will eliminate the need for middlemen on whom applicants relied to get the necessary clearances. By implementing a time frame in which the permissions have to be granted, the urban local bodies will need to ensure that they meet the revised guidelines. Broadly speaking, all the measures in the revised by-laws are aimed at empowering the urban local bodies – the first pillar on which the success of the Real Estate (Regulation and Development) Act 2016 depends. On a larger scale, these unified by-laws should act as a guiding light for other states to follow.
