The stagnancy in the real estate market is glaringly evident, particularly in the affordable segment, as numerous developers in Ahmedabad are selling two 2-BHK affordable housing apartments in the Residential Affordable Housing zone (RAH zone) as single 4-BHK luxury apartments. Realty experts describe this as a blatant violation of the Comprehensive General Development Control Regulations (CGDCR). According to regulations, developers in RAH zones can only sell houses of 90 square metre size in the affordable category, which typically translate to two or three bedroom-hall-kitchen (BHK) units. However, many developers are circumventing these rules by combining two 2-BHK houses and marketing them as 4-BHK units, which exceeds the stipulated 90 square metre limit. This practice is widespread in areas like Shela, South Bopal (SoBo) and Shilaj, among others, along the SP Ring Road—a designated RAH Zone in the city. Unviable business model claim developers A developer, speaking on condition of anonymity, told Mirror, “Considering the rising land prices in Ahmedabad, including RAH zone and rising construction cost, we aren’t able to sell houses in the defined affordable rates of Rs 45 lakh in the RAH zone.” He added, “A few years ago, 2 and 3 BHK apartments were available in the range of Rs 50 to Rs 65 lakh in areas like Shela and SoBo. However, now 2 and 3 BHK are ranging from Rs 55 lakh till 1.20 crore per unit.” Consequently, some developers like him are merging two 2-BHK units to create a 4-BHK unit, selling it at Rs 1.25 crore to 1.75 crore. This price point appeals to a certain class of buyers who cannot afford similar-sized houses within city limits, where prices exceed Rs 2 crore. Legal warning bells Commenting on the trend, senior solicitor Paresh Jani of Jani and Company cautioned home buyers about the legal pitfalls of such purchases. “While Gujarat CM Bhupendra Patel has made good amendments in the CGDCR for the betterment of the citizens and in the development of the state, some developers and even buyers are violating the CGDCR rules in the RAH zone by selling two 2BHK apartments as one unit, ” said Jani. He further explained, “Even if there are two sale deeds between the developer and the buyer for two 2BHK apartments sold as 4BHK, it would have legal consequences. Moreover, there is a possibility of loss of tax to the state government in the form of stamp duty and GST.” Why no action from Gujarat RERA? Realtors are questioning Gujarat Real Estate Regulatory Authority’s (RERA) passive stance on this issue. Despite developers openly marketing such properties and industry insiders and buyers being aware of these practices, Gujarat RERA appears oblivious to the situation and has not initiated any suo moto action on a matter that affects the public at large. Industry body acknowledges problem When contacted, CREDAI Gujarat President Dipak Patel said, “We have heard of a few developers in RAH Zone that are into such malpractices. While it is completely against the rule, as it affects the property buyers, we will also write to Gujarat RERA to act upon such developers.” Ahmedabad Mirror