Cabinet approves regulations for conferring/recognizing ownership or mortgage/ transfer rights to 40 lakh residents of unauthorized colonies in Delhi

Bill to be introduced in the next session of Parliament The Union Cabinet approved the Regulations for conferring/ recognizing ownership or mortgage/ transfer rights to residents of Unauthorized Colonies (UCs) in Delhi. The Cabinet further approved bringing a Bill in the next session of Parliament to implement the proposal. Major impact & benefit to the People living in Unauthorised Colonies in Delhi: The decision will benefit more than 40 lakh residents of unauthorized colonies spread over around 175 sq kms, as development / redevelopment can now take place in these colonies resulting in a clean, secure and healthy living environment. This landmark initiative will address major issues being faced by the residents of UCs like lack ownership/transfer rights, provision of basic infrastructure and civic amenities. With recognition of property documents, the property holders in these colonies can now enter into valid property transactions. Besides providing a legitimate claim to the property, the decision will encourage property holders to invest in safe structures, thereby improving the living conditions in these colonies substantially. The decision is applicable to 1,797 identified UCs, which are inhabited by lower income group society. The decision does not apply to 69 affluent colonies identified by DDA, including Sainik Farms, Mahendru Enclave and Anant Ram Dairy. 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% (for less than 100 sq m), 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 UC. For colonies on private land, the charge will be half of the charge on government land. Details: In the ensuing session of the Parliament, the Central Government will introduce a Bill for recognizing General Power of Attorney (GPA), Will, Agreement to Sell, Purchase and possession documents, which will be a one-time relaxation for this purpose for the residents of UCs. 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. DDA will lay down a simplified procedure for issuing conveyance deed and registration of property. Boundaries of the UCs/ clusters of UCs will be delineated by DDA. DDA will prepare Local Area Plan (LAP) for all UCs. 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 instalments to be paid in a year. Any person paying full amount in one instalment will get the ownership rights immediately. Provisional rights will be given on payment of 02 instalments, which will be converted to permanent rights after full and final payment. Late payment to attract simple interest @ 8% pa. Conveyance deed will be executed for residential purpose, irrespective of use. Background: As per the existing Regulations of 2008, the entire process of regularization was to be coordinated and supervised by Government of National Capital Territory of Delhi, (GNCTD) by giving wide publicity. Delineation of boundary of UC is the starting point of the process as per the Regulations. However, GNCTD could not delineate the boundaries of these colonies even after 11 years of issuance of the Regulations and has sought more time upto 2021 to complete this exercise. People living in these UCs have neither invested in safe structures nor could the Government create any social infrastructure on account of these colonies having developed without approved Layout Plan (LOP). In the absence of basic amenities, the residents of these colonies are living in uninhabitable conditions. Though the Master Plan Delhi-2021 allows for redevelopment of colonies with 50% additional Floor Area Ratio (FAR) as an incentive, no redevelopment has taken place so far as the residents do not have ownership rights. In order to confer/ recognize ownership or mortgage/ transfer rights to residents of UCs, a Committee, headed by the Lieutenant Governor of Delhi, was constituted, with approval of the Union Cabinet, to recommend the process for conferment/recognition of rights of ownership or transfer/mortgage of property and thereby create an opportunity for redevelopment of such areas in a planned manner. Based on the recommendations of the Committee and elaborate consultations with all stakeholders the above proposals to notify revised Regulations and introduce a Bill in the Parliament have been finalised.