‘Diwali gift’ to benefit 50 lakh residents in Delhi; Sainik Farms among 69 affluent colonies left out

Ahead of the upcoming Assembly election in Delhi, around 40-50 lakh people living in 1,797 unauthorised colonies in the national Capital will be given ownership rights.

As per the Union Cabinet’s decision on Wednesday to legalise these unauthorised colonies, the ownership right will be given after payment of regularisation charge based on carpet area/plot size. For colonies on private land, the regularisation charge will be half of the charge on Government land.

The rights will be conferred on payment of nominal charge based on carpet area/plot size. For colonies on Government land, the charge will be 0.5 per cent  for less than 100 sqm, 1 per cent for 100-250 sqm and  2.5 per cent for greater than 250 sqm, of the circle rate of highest category of locality of the residential

area surrounding the unauthorised colony.

Making the announcement after the Cabinet’s decision, Union Housing and Urban Affairs Minister Hardeep Singh Puri said the Centre will bring a Bill in the Winter Session of Parliament beginning November 18 to this effect. Puri called it the most “far-sighted, progressive, revolutionary step” for Delhi since Independence.

The Minister termed the move as a “Diwali gift” to the poor residents. The Cabinet decision does not apply to 69 affluent colonies such as Sainik Farms, Mahendru Enclave and Anantram Dairy.

The decision is politically significant as unauthorised colonies, which account for a sizeable vote base, have been a key issue in Delhi and has figured prominently in the manifesto of political parties in each election. The term of the Delhi Assembly ends in February.

The proposed Bill is aimed at recognising general power of attorney (GPA), will, agreement to sell, purchase and possession documents. This will give a one-time relaxation to the residents of these colonies. The Bill will also provide for registration charge and stamp duty on last transaction and also address the issue of income tax liability on account of less than circle rate charges.

Puri also slammed the Arvind Kejriwal Government, accusing it of trying to “delay” the decision to grant people from low-income groups ownership rights. Puri said the city Government had sought time till 2021 to give the inputs sought from it for taking the decision and added that the Modi Government decided to “take the initiative when it became clear that the Delhi Government will do nothing”.

The DDA will lay down a simplified procedure for issuing conveyance deed and registration of property and fix the boundaries of these colonies. There will be no penalty and external development charges (EDC). Multiple plots/flats holders will be charged on the rate applicable to area by clubbing all properties. Residents will have option to pay charge in three equal installments to be paid in a year.

“Any person paying full amount in one installment will get the ownership rights immediately.  Provisional rights will be given on payment of two installments, which will be converted to permanent rights after full and final payment. The late payment will attract simple interest at the rate of eight per cent per annum. Conveyance deed will be executed for residential purpose, irrespective of use,” the statement said.

As per the existing regulations of 2008, the process of regularisation was to be coordinated and supervised by the Delhi Government.

 “Delineation of boundary of unauthorised colonies is the starting point of the process as per regulations. However, the Delhi Government could not delineate the boundaries of these colonies even after 11 years of issuance of the regulations and has sought more time up to 2021 to complete this exercise,” an official statement said. 

In July, the Delhi Government had proposed a set of parameters to regularise the 1,797 colonies, which include charging one per cent cost of circle rate of land for up to 200 square metre plot from occupants besides a nominal penalty.

Regularisation of unauthorised colonies has been a long standing demand. However, successive Governments have failed to take a final call on the issue. Earlier this year, a committee was formed under Lieutenant Governor Anil Baijal to finalise the process.