In a major decision concerning Delhi which will face assembly polls early next year, the Union Cabinet on Wednesday approved regulations for conferring and recognising ownership rights to residents of unauthorised colonies, which would benefit 40 lakh residents of the national capital.
The decision was announced by Information and Broadcasting Minister Prakash Javadekar and Housing and Urban Affairs Minister Hardeep Singh Puri at a press conference after the Cabinet meeting here, which was chaired by Prime Minister Narendra Modi.
The Cabinet also gave its approval to bringing a bill in the next session of Parliament to implement the proposal.
Javadekar said the Cabinet has approved the regulations for conferring or recognizing ownership or mortgage or transfer rights to residents of Unauthorised Colonies (UCs) in Delhi.
He said the decision will benefit more than 40 lakh residents of unauthorised colonies spread over around 175 sq km as development and redevelopment can now take place in these colonies resulting in a clean, secure and healthy living environment.
An official release said the initiative will address major issues being faced by the residents of unauthorised colonies like lack of ownership, transfer rights, provision of basic infrastructure and civic amenities.
He said that apart from providing a legitimate claim to the property, the decision will encourage property holders to invest in safe structures.
The decision is applicable to 1,797 identified unauthorised colonies which are inhabited by lower-income group society and 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 the payment of nominal charge based on carpet area or plot size.
For colonies on the government land, the charge will be 0.5 per cent (for less than 100 sq m), one per cent (for 100-250 sq m) and 2.5 per cent (for more than 250 sq m) of the circle rate of highest category of locality of the residential area surrounding the colony. .
For colonies on private land, the charge will be half of the charge on the government land.
The release said that the Central government will introduce a bill in the winter session of parliament for recognising General Power of Attorney (GPA), will, agreement to sell, purchase and possession documents which will be a one-time relaxation for this purpose for residents of the colonies.
The Bill will provide for registration charge and stamp duty on the 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. The boundaries of the unauthorised colonies and clusters of such colonies will be delineated by the DDA.
The agency will also prepare the Local Area Plan (LAP) for all unauthorised colonies. There will be no penalty and external development charges (EDC). Multiple plots and flats holders will be charged on the rate applicable to the area by clubbing all properties.
The residents will have the option to pay the charge in three equal instalments to be paid in a year.
Any person paying the full amount in one instalment will get the ownership rights immediately. Provisional rights will be given on the payment of two instalments, which will be converted to permanent rights after full and final payment.
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.
( With inputs from ANI )