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Thursday, Nov 21, 2019

Explainer: Regularisation of unauthorised colonies in Delhi

cities Updated: Oct 23, 2019 23:48 IST
Risha Chitangia and Sweta Goswami
Risha Chitangia and Sweta Goswami

The Union Cabinet on Wednesday approved the proposal to confer ownership rights to residents of unauthorised colonies in Delhi. The decision is likely to benefit close to four million residents of Delhi living in 1,728 unauthorised colonies.

*Who will benefit from the Centre’s decision?

There are 1,797 unauthorised colonies in Delhi, as per the state government. The Centre has decided to confer/recognise ownership/mortgage/transfer rights of residents living in 1,728 unauthorised colonies, which have come up till 2015, in Delhi. Housing and urban affairs minister Hardeep Singh Puri said that 69 “affluent” colonies including Sainik Farms, Mahendru Enclave and Anant Ram Dairy are not included in it.

Of the 1,728 unauthorised colonies, there are 300-plus colonies that are partly on forest land or ASI-owned land. In such colonies, properties falling on forest or ASI land will not be conferred ownership rights while others will. The cut-off year for eligible beneficiaries will be 2015, however, the exact date and month is yet to be ascertained.

*When will registry of properties actually begin?

Senior official said that it will not start before February next year. The process will take time, as the Centre will have to issue a notification and DDA will have complete the survey.

* What happens next?

The Centre will table a Bill in the upcoming Parliament session, starting November 18, for recognising the General Power of Attorney, will, agreement to sell, purchase and possession documents. This will be a one-time relaxation for conferring ownership rights to residents of unauthorised colonies.

The Bill will provide for registration charge & stamp duty on last transaction and also address the issue of income tax liability on account of less than circle rate charges.

The Delhi Development Authority (DDA) will simultaneously start the process to demarcate boundaries of unuathorised colonies, which will be completed in the next three months. The boundaries will be drawn based on the satellite images provided by Survey of India till 2015. The land-owning agency will lay down a simplified procedure for issuing conveyance deed and registration of property.

Registry of properties, which will be done by the Delhi government, after DDA completes the demarcation process and execute the conveyance deed of properties.

*What’s the process to confer ownership rights?

Once the boundaries are fixed, DDA will open a web portal to start the process to give ownership rights. DDA vice-chairman Tarun Kapoor said, “A web portal will be setup in the next three months by January end or February to initiate the process.”

On web portal, which will be managed by the DDA, a property owner will apply for ownership rights and make partial payment based on self-calculation of the amount to be paid. Explaining the process, Kapoor said, “After we receive the application, a team of official will do the site inspection to verify the particulars. The amount payable will be finalised after the inspection. After the payment of the amount, DDA will execute a conveyance deed. Based on the conveyance deed, property owner can get the property registered with the Delhi government.”

The Delhi government will set up camps at all such colonies and process registration of those properties that have received the conveyance deed.

*What does the decision mean for the residents of 1,728 colonies?

Till now, property transactions in these colonies are carried on General Power of Attorney (GPA), which is not recognised by the Delhi government following the Supreme Court order in 2011. With this decision, property owners in these colonies will be able to get their properties registered with the Delhi government’s revenue department, take loan against their property, get building plans sanctioned and construct structurally safe buildings.

The government will then be able to provide social infrastructure such as parks, schools, community centres etc in these colonies depending on the space available. It will also provide civic infrastructure depending on the requirement.

*What is the amount residents will have to pay for getting the ownership rights?

The ownership rights will be conferred on the payment of charge based on carpet area/plot size. For colonies which have come up on government land, the charge will be 0.5% (for less than plot size 100 sq.m), 1% (for 100 - 250 sq.m) and 2.5% (for plot size more than 250 sq.m) of the circle rate of highest category of locality of the residential area surrounding the unauthorised colony.

For unauthorised colonies that have come up on private land, the charge will be half of the charge on government land i.e 0.25% for plot size less than 100 sq.m.

The Centre has decided that no penalty and external development charges will be taken from residents. In case there are multiple plots or flats holders, they will be charged as per the rate applicable to area by clubbing all properties.

Residents can either pay the entire amount in one installment or three equal installments in a year. The government will give provisional rights after the payment of second installments, which will be converted to permanent rights after full and final payment. Late payment to attract simple interest @ 8% per annum.

In most unauthorised colonies, the buildings are used for residential-cum-commerical purpose. But the government has decided that the conveyance deed will be executed for residential purpose, irrespective of use. To use the property for commercial purpose, property owner will have to pay conversion charges as approved by the municipal corporations.

*Can people construct get the building plans sanctioned?

No. The initial process will be just to confer ownership rights to residents. This doesn’t mean that a particular unauthorised colony will be regularised.

As a long term plan for regularisation, the DDA has been asked to prepare the Local Area Plan for all the colonies. DDA official said that the develop control norms for unauthorised colonies will be further relaxed so that people can get their building plans sanctioned and opt for redevelopment, as allowed in the Master Plan of Delhi-2021.

*What happens to the 69 “affluent” unauthorised colonies that have been left out and colonies which have come up after 2015?

Puri said that this decision in this regard later on.