The police firing and the death of four farmers in Greater Noida has put a spanner in the works for the Delhi Development Authority’s (DDA) draft policy to allow private participation in the housing sector.
Experts from the Union Urban Development Ministry said if the policy is accepted, it might lead to a repeat of the Greater Noida incident.
Landowners may demand higher price from the government, since their lands would eventually be auctioned to private developers, experts feel.
The DDA has proposed that private developers should be allowed in the housing sector to bridge the huge demand-supply gap in Delhi.
The agency will acquire land and auction it off to the highest bidder.
The private sector partner will then develop about 20 per cent of the land as parks, playgrounds, etc and build flats on a part of the land for the economically weaker sections (EWS) and return it to DDA.
On the rest, the developer will build general housing units and sell them at market rates.
The ministry has directed DDA to change the policy so that it is attractive to both the landowners and private developers.
“After spending on the land, development and EWS housing, the developer will sell houses at exorbitant rates. It will make housing unaffordable,” said an official.
“It is just another form of large-scale land acquisition and will result in unrest among landowners,” the official noted.
The official said the DDA had been told to allow private developers to acquire land directly at market rates so that the landowners do not feel shortchanged.
In fact, at a meeting last month, chaired by Delhi Lieutenant Governor Tejendra Khanna, the DDA had to junk its pilot project at Narela in north-west Delhi, as it felt that the flats to be built by private developers would become unaffordable.
It has now decided to develop the plots and construct flats on its own at Narela and then sell them through lotteries.
At present, the cost of DDA flats is much less than the prevailing market rates.