Residents look forward to easier loans, wary of registration process

As the Union cabinet on Wednesday cleared the proposal of recognising unauthorised colonies in the national capital, the common train of thought that swept its residents

As the Union cabinet on Wednesday cleared the proposal of recognising unauthorised colonies in the national capital, the common train of thought that swept its residents was the prospect of accessing easier loans.

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“After years, this decision will contribute in removing a stigma of some sort of illegality for people owning or selling properties in these colonies. It will also contribute to security because most property transactions in these colonies happen on the basis of documents such as power of attorney which are no longer considered legally valid,” said Afsar Ali, resident of an unauthorised colony in north-east Delhi’s Yamuna Vihar.

“But how much will I have to pay for it – ₹1,000, ₹10,000, ₹1,00,000 or ₹10,00,000? There is no clarity unless a proper notification is made public and efforts are put in ensuring people know about it,” said Ram Niwas, a resident of Sangam Vihar, which is believed to be the biggest unauthorised colony in Delhi.

The decision is likely to benefit more than five million people who reside in unauthorised colonies in the city. Delhi has as many as 1,797 identified unauthorised colonies but the decision on ownership and transfer rights does not apply to 69 colonies including upscale neighbourhoods such as Sainik Farms, Mahendru Enclave and Anant Ram Dairy.

For colonies on government land, the charge will be 0.5% (for less than 100 square metres), 1% (for 100-250 sqm) and 2.5% (for greater than 250 sqm) of the circle rate of highest category of locality of the residential area surrounding the unauthorised colonies. For colonies on private land, the charge will be half of the charge on government land, the union urban affair ministry said on Wednesday.

“The initiative will bring multiple benefits for the poor and middle-class people who live in these colonies. One of the biggest benefits will be loans. Residents will now be able to mortgage their houses in unauthorised colonies and get loans sanctioned for business or personal reasons,” said Chaudhary Sultan Singh of Durga Vihar, an unauthorised colony in south Delhi’s Deoli.

Atul Singh Nagar, resident of an unauthorised colony in east Delhi’s Pandav Nagar, said: “But the option has to be affordable, otherwise people will not opt for registration. At the end of the day, the same people have lived in these colonies for years without registration for decades. They will register properties only if it the potential benefits outweigh the cost.”