Rebuild DDA colonies over 50 years old, LG’s task force proposes

There are at least 30 residential colonies built by DDA, set up in 1957 and reports to Saxena, that are at least 50 years old, spread across the Capital

All residential colonies built by the Delhi Development Authority (DDA) that are over 50 years old might have to be reconstructed to bolster their structural safety, if the recommendations of a government-industry task force set up by lieutenant governor VK Saxena are accepted.

There are at least 30 residential colonies built by DDA that are at least fifty years old. (HT File)

The task force, which was set up by Saxena in 2024 and comprises the Delhi State Industrial and Infrastructure Development Corporation, DDA, the Municipal Corporation of Delhi and the Confederation of Indian Industry, submitted its report to the LG and industries minister Manjinder Singh Sirsa on Tuesday.

To be sure, the recommendations are not binding on the government and a decision will have to be taken by the Delhi government.

There are at least 30 residential colonies built by DDA, which was set up in 1957 and reports to Saxena, that are at least 50 years old, spread across the Capital.

The report titled “How to revitalise Delhi: Report of the task force”, a copy of which HT has seen, also recommended that circle rates for commercial and industrial property in Delhi should be reduced as they are higher than neighbouring Gurugram and Noida and even Mumbai in some cases. The panel also suggested incentivising slum redevelopment through Public Private Partnership (PPP) projects with commercial activity.

Citing structural safety concerns and the need for densification, the task force asked the Delhi government and DDA to formulate a legally binding policy that compels redevelopment of these ageing structures, many of which were built in the 1960s and 70s. The proposal includes incentives such as higher Floor Area Ratio (FAR) and faster clearances for developers undertaking such projects.

According to the information available on DDA’s website, it commenced its housing activities in 1967, and prior to that, some residential societies were under the Land and Building Department, Delhi Administration. In 1969, 27 societies were transferred to DDA for administration, and 99 more were transferred in 1981, with the exception of one society.

Today, DDA colonies older than 50 years exist at Safdarjung, Masjid Moth, Saket, East of Kailash, Friends Colony, Munirka, Kalkaji, Madangir, Sunlight Colony, Katwaria Sarai, Pitampura, Rajouri Garden, Shalimar Bagh, Naraina, Wazirpur, Lawrence Road, Paschim Puri (in Paschim Vihar), Janakpuri, Shankar Road, Vivek Vihar, Deshopur, Najafgarh Road, Prasad Nagar, Vikas Puri, Govind Puri, Sheikh Sarai, Rohtak Road, and Yamuna Puri.

All of these may be part of the redevelopment proposal if approved by the government.

The task force said Delhi’s current circle rates are significantly higher than those in Gurugram and Noida, distorting real estate transactions and discouraging investment. Circle rates are the minimum value assigned to a property for registration purposes by the government, used as a benchmark for property valuation and stamp duty calculation.

“Delhi’s market has been priced out by its own valuation benchmarks,” the report noted. “There is an urgent need to realign circle rates with market realities, especially in areas where transactions have shifted to satellite towns.”

In premium residential areas, Delhi’s circle rates are ₹7.74 lakh per square metre, while the highest residential circle rate is ₹5.5 lakh/sqm in Gurugram and ₹1.19 lakh/sqm in Noida. For commercial areas, Delhi’s circle rates are ₹69,820- ₹23.3 lakh/sqm, while in Gurugram the maximum rate is ₹2.36 lakh/sqm and ₹1.19 lakh/sqm in Noida. The maximum circle rate in Mumbai in residential areas is ₹2.36 lakh/sqm and in commercial areas is ₹2.71 lakh/sqm, making Delhi’s rates the highest, according to the report.

The panel also backed reviving and expanding slum redevelopment projects through the PPP model, allowing developers to integrate commercial components as part of the rehabilitation plan. Inclusion of commercial activity will make these projects financially viable and accelerate transformation on the ground, it said.

“The authority has already approved and recommended the revised norms as an amendment to MPC 2021 which have been submitted to the central government for approval and final notification,” the report stated.

The recommendations come at a time when Delhi’s housing market is facing a shortage of low income housing.

The report also contained proposals for single-window clearances, standardised development control norms across agencies, and timebound approvals for large projects. The 10-point report also recommends reduction in amalgamation charges for commercial plots, no requirement of revised layout plans in MCD areas, having a green building policy to incentivise sustainable infrastructure development, rationalisation of property tax, optimum utilisation of land allotted to DMRC and reduction in FAR for hotel and other commercial plots.

Experts said that while it is fine to redevelop aging infrastructure, several other factors should also be kept in mind to ensure that the transition is smooth.

“Redevelopment is definitely welcome as these are old structures that may be weakening and also lack key amenities such as parking. However, such projects need a complete ecosystem like changes within the DDA Act, stamp duty exemption, environmental clearances and alternative accommodation for residents currently occupying the apartments. The project should also be financially viable which is possible with construction of additional flats or commercial development. In residential areas surrounding the Delhi Metro, Transit Oriented Development (TOD) should be considered,” said PS Uttarwar, retired additional commissioner of DDA.

Uttarwar also added that civic infrastructure should also be accordingly developed with improved parking, water supply, stormwater drainage and sewer lines.