NDMC to ease compliance as Jan Vishwas Bill pushes trust over punishment

NDMC to ease compliance as Jan Vishwas Bill pushes trust over punishment

New Delhi, The New Delhi Municipal Council is set to align its enforcement approach with the Centre's Jan Vishwas Bill, 2026, which decriminalises over 1,000 minor offences and signals a shift towards trust-based governance.

NDMC to ease compliance as Jan Vishwas Bill pushes trust over punishment

The Bill was passed by both Houses of Parliament on Thursday.

The New Delhi Municipal Council on March 30 said that implementing the Unit Area Method introduced by the Bill could reduce property tax by 30 to 50 per cent, particularly benefiting old and self-occupied properties.

The Bill was introduced by Minister of State for Commerce and Industry Jitin Prasada in the Lok Sabha, which proposed multiple changes to the the NDMC Act, 1994.

Highlighting the benefits of UAM, NDMC Vice-Chairman Kuljeet Chahal earlier referred to the reduction of about 30 to 50 per cent in property tax in the NDMC area, noting that the age factor will provide relief for older properties, and bifurcation will allow separate assessment of different portions of a property .

The Bill further proposes a complete overhaul of the tax structure, specifying that property tax will now comprise two components: building tax and vacant land tax, replacing the earlier section 61 of the New Delhi Municipal Act 1994.

NDMC's tax collection stood at ₹1,045 crore last year and is expected to rise to approximately ₹1,350 crore this year.

The reforms aim to reduce the fear of criminal action for minor and first-time lapses, replacing immediate penalties with warnings and encouraging voluntary compliance among citizens and businesses.

For the NDMC area, which is home to the nation's political capital and high-profile residents, the shift could translate to fewer punitive actions for minor violations such as documentation gaps or procedural delays. Officials indicated that the emphasis will now be on giving violators an opportunity to rectify mistakes before penalties are imposed.

Under the framework, first-time and minor offences will invite warnings instead of prosecution, while penalties, where necessary, will be proportionate to the severity of the violation to ensure balanced enforcement.

The Bill also proposes faster and more transparent resolution of disputes through adjudicating officers and appellate authorities, a move expected to ease the burden on courts and speed up grievance redressal.

Additionally, a dynamic penalty mechanism has been proposed, under which fines will be periodically revised to remain effective and relevant over time.

Officials said the broader objective is to foster a facilitative environment where regulation is seen as supportive rather than punitive, marking a shift in governance approach from strict enforcement to building trust with citizens.

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