The Union Cabinet has approved the long-pending demand for the regularisation of 1,797 unauthorised colonies in Delhi. The decision is aimed at addressing issues like the lack of ownership and transfer rights, provision of basic infrastructure and civic amenities. The central government expects the move to benefit more than 40 lakh residents of unauthorised colonies spread over around 175 square kilometres across the National Capital Territory.

According to the government press release, with the recognition of property documents, the property holders in these colonies can now enter into valid property transactions. However, the ownership and transfer rights will be conferred on payment of nominal charge based on carpet area or plot size.

For colonies on government land, the charge will be 0.5 percent (for less than 100 square metres), 1 percent (for 100 - 250 square metres) and 2.5 percent (for greater than 250 square metres), of the circle rate of highest category of locality of the residential area surrounding the unauthorised colony. On the other hand, for colonies on private land, the charge will be half of the charge on government land.

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The government plans to introduce the bill allowing these changes in the next session of the parliament. The bill will pave the way for recognising General Power of Attorney (GPA), will, agreement to sell, purchase and possession documents in the specified unauthorised colonies. However, this will be a one-time relaxation. The bill will also provide for registration charge & stamp duty on the last transaction and will also address the issue of income tax liability.

Union Minister for Housing & Urban Affairs, Hardeep Singh Puri has called this a "significant decision" to spur the transformation of the urban landscape in Delhi. He also said that the centre will give major exemption from stamp duty and income tax liabilities to the residents.

Government will introduce a Bill in the next Parliament Session to recognise the last transaction based on certain papers & give major exemption from Stamp Duty & Income Tax liabilities to the residents. pic.twitter.com/v4BJS8rrPp

— Hardeep Singh Puri (@HardeepSPuri) October 23, 2019

Delhi's chief minister Arvind Kejriwal welcomed the central government's decision and added that the plan was based on a proposal sent by the Delhi government to the Centre in July this year. He also urged the Centre to start the regularisation process immediately.

While this decision will be applicable to identified unauthorised colonies, which are inhabited by the lower-income group, it does not apply to 69 affluent colonies identified by DDA, including Sainik Farms, Mahendru Enclave and Anant Ram Dairy.

First Published:Oct 23, 2019 7:15 PM IST