In a historic decision Modi Govt. gives ownership rights to 40 lakh people in Delhi’s unauthorized colonies


In a major decision, the Union Cabinet on October 23 approved regulations for conferring or recognizing ownership or mortgage or transfer rights to 40 lakh residents of 1,797 unauthorized colonies in Delhi.

The Bill will be introduced in the next session of Parliament during the Winter Session that commences on November 18. The development comes just a few months ahead of the Delhi Legislative Assembly elections, scheduled to take place in early 2020.

The decision will benefit more than 40 lakh residents of unauthorized colonies spread over around 175 sq kms, as development or redevelopment can now take place in these colonies resulting in a clean, secure and healthy living environment, said Housing and Urban Affairs Minister Shri Hardeep Singh Puri.

This initiative will address major issues being faced by the residents of unauthorized colonies such as lack of ownership or 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.

“Ownership rights will be conferred to the people who are living there whether they are living on private land or government land because many of these transactions have taken place on the basis of general power of attorney or some other documentation. We have decided to go ahead and confer these rights which will enable the inhabitants of these colonies to apply for permission, to raise FAR, to build, to sell, to take a loan and all manner of transactions,” Shri Puri told reporters.

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 unauthorized colonies, Shri Puri said.

For colonies on private land, the charge will be half of the charge on government land, he said.

DDA will lay down a simplified procedure for issuing conveyance deed and registration of property. 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 02 installments, which will be converted to permanent rights after full and final payment. Late payment to attract simple interest at the rate of 8% per annum.

In order to confer or recognize ownership or mortgage or 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 or 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.