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    Housing Ministry approves land pooling policy

    Category : MPD-2021 News

     

    The Ministry will have to issue a gazette notification, following which it goes back to DDA for operationalisation

    The Ministry of Housing & Urban Affairs has approved the land pooling policy that is expected to see 17 lakh dwelling units come up in the national capital, of which 15 percent units will be in the affordable category. “I have signed the land pooling policy today,” Housing and Urban Affairs Minister Hardeep Singh Puri told Moneycontrol.

    The land pooling policy was cleared by Delhi Development Authority (DDA) at its board meeting in September after almost five years. It covers any urbanisable area of urban extensions in 95 villages. With a floor area ratio (FAR) of 200, Delhi’s 76 lakh people will be accommodated in these homes. To promote affordable and inclusive housing, 15 percent FAR, over and above the permissible FAR, has been allowed for economically weaker sections (EWS).

    The policy covers greenfield areas in five zones, including J, K-1, L, N and P-II, which come under the Master Plan of Delhi-2021 (MPD).

    “It is the step in the right direction. It was long awaited but the real challenge lies ahead for Delhi Development Authority on how fast they operationalise the pooling mechanism and initiate measures to attract large investments from institutional capital,” says Ramesh Menon of Certes Realty.

    The land pooling policy will now have to go through two more steps. The Ministry will have to issue a gazette notification, following which it goes back to DDA for operationalisation.

    As part of the land pooling policy, DDA will act as a facilitator and planner while the process of pooling and development will be undertaken by developer entities or the consortium. A single window mechanism has been created for implementation of the policy.

    Land owners having land of any size can participate in the policy, however, the minimum area to be taken up for development would be two hectares. A developer entity (DE) or an individual can participate in the scheme by pooling land parcels covered under a sector as per the Zonal Development Plan.

    For planning and development of infrastructure, integrated sector-based planning approach shall be followed. A sector will comprise 250-300 hectares of land. Once the minimum 70 percent contiguous land of developable area, free of encumbrances, within a sector is assembled, such sectors will be eligible for development under the policy, where any individual, DE or consortium with minimum two hectares of land can take up development.

    Menon said while land pooling will be a good opportunity for high networth individuals to invest in land, homebuyers are cautioned to stay away till licences are issued by DDA.

    Various notifications and judicial orders explicitly prohibit any marketing and sales of real estate projects without a valid licence to build and prior registration with Real Estate Regulatory Authority authorities. Many a projects advertised by quasi developers in Delhi have neither, and DDA has already cautioned prospective buyers.

    Source: Money Control.com
    Dated: 11th October 2018


    No recourse for retail buyers in Delhi land pooling

    Category : MPD-2021 News

     

    DDA kept advertising that individual buyers should refrain from buying till the law was notified but the association members assured her there was nothing to worry about

    Seema Goel of Ahmedabad thought she had planned her retirement well. Five years ago, she bought into a Cooperative Group Housing Society for a 1200 sq ft flat in the L-zone, on the assurance from one of her relatives that Delhi’s land pooling was through. She bought into a society along with her relative, who was a member of a professionals’ society formed by officers of a Govt. institution. The idea was that she would be able to live close to her relatives when she shifted back to Delhi after retirement.

    The first set-back was when the process got delayed with the Delhi chief minister refusing to sign until some conditions were met.

    The Delhi Development Authority (DDA) kept advertising that individual buyers should refrain from buying till the law was notified but the association members assured her there was nothing to worry about.

    She also paid Rs 10-12 lakh each that the members were required to pay towards purchase of the 5+ acres that the society bought from the land owners/farmers.

    “The land pooling policy as would be notified in its final form, would be significantly different than what these societies have calculated”, says land expert Ramesh Menon of Certes Realty.

    The first is that Delhi does not register Cooperative Group Housing Societies since the mid-1990s, explains Menon. Goel’s society and many others are registered in other states as a multi-state Cooperative Group Housing Society.

    The original draft allowed an FAR of 400 which has been reduced to 200 in the new draft. As a result when the society was formed, there was absolutely no clarity, either on the Density norms, FAR or the total number of apartments that would be allowed to be built per acre.

    Numbers vary between 50 – 100 apartments, calculated at random by different societies. With the reduction in FAR, the total number of apartments that can be built might be as low as 30% of the original calculations by some societies. Then, questions Menon, how will all the members get their houses?

    The promoter has land which is paid for by more members than can be accommodated. However, the earlier plan was that DDA would aggregate all the land, draw up master plans and hand over 60% developed land back to the original owners.

    In that scenario, the smallest land holders would get proportional developed land from the authorities. That clause has undergone a change. While DDA is expected to draw up the zonal plans, the sectoral plans are now to be made by the Developer Entities (DE) who will create the sectoral level layouts.

    Smaller land holders are apprehensive that they may well be added to the perimeters where the land values and services may be weak. No safeguards against this has been spelled out in the document passed by DDA and issued by the LG of Delhi.

    However, the Seema Goels of the world cannot complain either. They had bought into a hope that early buys would get them cheaper homes. With a draft that assured equal rights, regardless of the size of holding, it seemed a risk worth taking. Can they look back and say it was wise?

    Source: ET Realty
    Dated: 28th September 2018


    DDA finally approves land pooling policy

     

    Urban experts say the measure of success of the land pooling policy would depend on the ‘intent, ability and pace’ of operationalisation

    The Delhi Development Authority’s land pooling policy, which is expected to meet the residential needs of about 95 lakh people besides stimulating economic growth, has finally been approved, BJP MLA Vijender Gupta has confirmed.

    It was cleared at the Authority’s board meeting chaired by the lieutenant governor Anil Baijal on Friday.

    “The policy is likely to be notified within two to three weeks. It will pave the way for creation of affordable housing stock in Delhi,” Gupta told Moneycontrol.

    In December last year, the policy was simplified for speedy execution. DDA was to act as a facilitator and planner as against the role initially envisaged for it as a part of simplification of execution of land pooling policy. What that means was that the transfer of pooled land to the DDA will not be required.

    Originally, land pooled under the policy was to be transferred to DDA which was to act as the Developer Entity (DE) and undertake further sectoral planning and development of infrastructure in the pooled land. At the December meeting, it had decided to do away with this requirement and said that land title will continue to be with the original landowners.

    For implementation of the land pooling policy, public notices were published in newspapers on January 11-12 for inviting objections, suggestions and observations or views within a period of 45 days from the general public. In all, 734 objections, suggestions and observations or views were received. These were examined by the board of inquiry and a public hearing was held in July.

    The report prepared by the board of inquiry was discussed at the authority’s board meeting that was chaired by lieutenant governor Anil Baijal on Friday.

    In December last year, DDA was also asked to ensure single-window clearance mechanism for according necessary approvals for speedy implementation.

    Land Pooling Policy covers the greenfield areas in five zones viz., J, K-1, L, N and P-II coming under the Master Plan of Delhi-2021. To incentivise dense development for effective utilisation of scarce land resource in the national capital, the policy permits enhanced FAR of 400 as against the present 150. To promote affordable housing, an additional FAR of 15 percent is also allowed.

    About 22,000 hectares of land is expected to be pooled which could meet the needs of about 95 lakh people. Land pooling would catalyse economic, social and civic development of the national capital besides triggering substantial investments and employment generation.

    Affordable houses for economically weaker sections to be built under the policy shall be of the size of 32-40 sq mt. Half of this housing stock shall be retained by the Developer Entity to house Community Service People working for the residents/owners of the Group Housing. These houses will be built at the site or at premises contiguous to the site allotted. The other half of affordable houses shall be sold to DDA at the base cost of Rs 2,000 per sq ft for further sale to beneficiaries.

    Issues pending with the Delhi government, such as, notification of 89 villages under the DMC Act, 1957, and declaration of 95 villages as development area of the DDA under Section 12 of Delhi Development Act, 1957, were resolved in May and June last year respectively.

    Urban planners and experts have welcomed the move but said the measure of success of the policy would depend on the ‘intent, ability and pace’ of its operationalisation.

    “While most would contend ‘better late than never’, in its current form, it may not meet the expectations of all stakeholders. Approving the policy is an executive decision, which is welcome. The measure of success would depend on the ‘intent, ability and pace’ of operationalisation,” says Ramesh Menon, Certes Realty.

    Source: Moneycontrol.com
    Dated: 7th September 2018


    Delhi’s land pooling policy: What’s in it for buyers?

    Category : Articles , MPD-2021 News

     

    There is no immediate hurry to transfer your hard-earned money into some quasi developer’s account. Wait for the licences to be issued by authorities. Else, you may neither see your money, nor your dream house for another 5-7 years

    Ramesh Menon

    There was euphoric exultation on the evening of September 7 over news that the Delhi Development Authority (DDA) has approved land pooling policy under Delhi’s Master Plan 2021. The question here is whether this optimism is justified? What does the policy have in store for buyers of residential units? In the short term actually nothing.

    Having said that, let’s examine the systemic disruptions in India over the past two years – Benami Transactions (Prohibition) Amendment Act; demonetisation in November 2016; Real Estate (Regulations & development) Act, 2016 (RERA); inclusion of the real estate sector in the Goods & Service Tax; and Real Estate Investment Trust (REITs) and Infrastructure Investment Trusts (InvITs), which have suddenly exposed the soft underbelly of the $180 billion industry.

    While the above policy disruptions may seem like radical changes, these have the potential for a more transparent and predictable business ecosystem in the future. And that’s exactly what buyers need to take note of while investing their hard-earned money in real estate assets.

    Now, back to the question of land pooling and home buyers. Let it be categorically known that there is no immediate hurry to transfer your hard earned money into some quasi developer’s account.

    In the run-up to approval of the land pooling policy, it was not mere coincidence that the Delhi Development Authority released some press releases warning unsuspecting buyers not to buy/book/fall for offers of apartments in unapproved projects under the land pooling policy. One may have also seen some tweets from BJP MPs and some MLAs exhorting people not to fall prey to unscrupulous offers, or complain about such grievances to authorities.

    What this essentially means is that the DDA is serious about land pooling this time around. It also wants the policy approvals to stand up to judicial scrutiny and not be castigated for not taking suo moto cognizance of the issue of multiple societies offering ‘DDA approved flats and plots under land pooling’ in Delhi.

    Merely owning a few acres of land does not qualify the landowner to develop and sell apartments. If one carefully reads the final notifications, the land pooling policy of Delhi introduces the concept of developer entity (DE). Here is an excerpt from the Raj Bhawan release of September 7:

    “For smooth planning and development of infrastructure, integrated sector-based planning approach shall be followed. A sector will comprise 250-300 hectares of land. Once the minimum 70 percent contiguous land of developable area within a sector, free of encumbrances, is assembled, such sectors shall be eligible for development under the policy, where any individual, DE or consortium with minimum two hectares of land can take up development.”

    For the ease of calculation let us assume that a particular sector is 500 acres. Effectively, DDA would initiate development planning of that particular sector after 350 acres of documented contiguity is proven. This points to the fact that a 2-5 acre property owner, who has sold apartments already under some scheme to buyers, is a marginal player in the decision making process of that sector. Assuming 500 consumers bought apartments in a marginal decision makers’ unapproved project, they have negligible say. To top it, DDA has already cautioned them earlier.

    Don’t forget, DDA is also the real estate regulator in Delhi. Hence, there is not much protection for an individual buyer as RERA has no provision for buyer gullibility. Most buyers who assumed that they bought an apartment better be aware that they are a member of a multi-state cooperative housing society, not strictly classified as a buyer under RERA.

    Price cannot be the only consideration while buying real estate. The ability to deliver needs be the foremost. Many projects that have been announced cannot even be delivered at the price points they have been sold at. Its common sense, why would anyone build if there’s no profit to be made.

    Various notifications and judicial orders explicitly prohibit any marketing and sales of real estate projects without a valid licence to build and prior registration with RERA authorities. Many a projects advertised by quasi developers in Delhi have neither, and DDA has already cautioned prospective buyers.

    Prospective buyers are the only custodians of the safety of their money. So, exercise caution, do not be lured by some imaginary price benefits. Wait for the licenses to be issued by the authorities. Else, you may neither see your money, nor your dream house for another 5-7 years.

    Let’s not forget the old adage: real estate is bought, never sold.

    The author is the founder director of Certes Realty and director on the board of SPA Capital Services, with knowledge insights on investments and land under MPD 2021

    Published on : Moneycontrol.com
    Dated: 10th September 2018

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    DDA likely to approve land pooling policy today

    DDA had put its revised draft land pooling policy in the public domain in January this year, inviting suggestions and objections, and had received 734 responses

    NEW DELHI: The ambitious but much delayed land pooling policy of Delhi Development Authority (DDA) is now likely to get approved on Friday.

    DDA had put its revised draft land pooling policy in the public domain in January this year, inviting suggestions and objections, and had received 734 responses, which were examined by a board of inquiry and a public hearing was held in July.

    The report prepared by the board of inquiry has been submitted, which will be discussed in the authority’s board meeting to be chaired by lieutenant governor Anil Baijal on Friday.

    BJP MLA Vijender Gupta, a member of the board of inquiry, said the policy might get approved on Friday. “The public hearing has taken place and the report has been submitted. On the basis of the report, the land pooling policy will get passed in the meeting,” he said.

    Gupta, however, claimed that due to unavailability of enough water, DDA proposed to allow only 200 floor area ratio (FAR) instead of the public demand for 400 FAR. “The reduction is a serious setback to the Centre’s efforts to ensure affordable housing to 20 lakh families,” he said. Once approved, the policy will be sent to the Union housing and urban affairs ministry for final notification.

    The policy was devised as an alternative to the cumbersome process of land acquisition for development and was announced in 2013. As per the policy, a developer or a consortium can pool land and retain 60% of it to develop residential, commercial or public facilities while 40% will go to DDA.

    Source: Economic Times
    Dated: 7th September 2018

     


    Liberation and land pooling in Delhi – A dichotomous relationship

    Land pooling is a more than USD 100-billion opportunity for the Capital city and the government’s flip-flop on the policy is not only causing damage to landowners, but also to the economy of Delhi

    Ramesh Menon

    ‘Too many governments, too much governance’. Sadly, that’s the challenge the landowning community is saddled with in Delhi. Governments as well as its agencies are working at cross purposes, thereby inflicting debilitating blows on the potential development and investment opportunity of more than USD 100 billion, over the next decade.

    Take a look at this:

    2007: Delhi Master Plan 2021 notified.

    2013: Land Pooling Policy notified.

    2014: India votes new government to power.

    2015: Multiple misplaced reviews and changes initiated.

    2018: We are still where we were

    It indeed was a paradigm shift when the Delhi Development Authority (DDA) announced the model for land pooling as the preferred model for the next level of urbanisation of Delhi. It was expected to unlock more than 50,000 hectares of land. Data establishes that almost 60 percent of the total land is still with the farmers or traditional land owning community. The balance 40 percent is estimated to be a ‘Non performing capital’ of institutions and high net worth individuals to the tune of USD 6 billion.

    This Independence Day is unlikely to bring any cheer to the landowners of Delhi owing to the apathy and lack of understanding of local issues by the policy makers. Hence, every proposed change or amendment would only rob the Delhi Master Plan 2021 of its credibility as the ‘largest and most profitable investment opportunity in real estate’ for the coming couple of decades.

    And here’s the dichotomy. The Delhi Development Authority (DDA), which prepared the master plan and zonal plans, has virtually outsourced its strategic policy making responsibility to the NIUA. NIUA seems to be revisiting the policy in totality, which probably may not be in the best interests of the landowners. On the other hand, the Delhi government has announced the ‘chakbandi’ (consolidation) of some villages, which may have to be excluded from the pooling process, till it is complete in all respects. The DDA, Delhi Jal Board (DJB), MCD, electricity department, etc. seem to downgrading the plans more as a ruse to hide their in built inefficiencies.

    Inefficiencies don’t liberate the truth, namely, Delhi NCT has to be developed to accommodate a population of 25 million people over the next decade. The total requirement of housing units would be in excess of 1.5 million dwelling units. The proposal of the authorities to reduce the FAR (from 400 to 200) would make it extremely unviable for the institutional investors to commit funds to this opportunity.

    It is my sense that the policy makers, specially those representing the political arm of governance, are not seized of the extent of damage their flip-flop is causing; not just to the landowners, but also the economy of Delhi. What worries more is that the landowners would exit somehow, someday, but it may be by way of plotting the land into unauthorised settlements, which would be counter productive to the stated intent.

    Do we seek a Capital of India which is home to more than 5000 unauthorised colonies? Would we want half the population to dwell in these shanties, than a planned city? Liberation would mean differently to different segments, but governments should only endeavour to trigger economic activity and enhance quality of life.

    (The author is an opinion leader on the subject of urbanisation of Delhi. He is the founder director of Certes Realty Ltd, and an Independent director on the board of SPA Capital Ltd.)


    PVT LAND OWNERS CAN NOW DEVELOP LAND IN CONFORMITY TO MASTER PLAN

    Category : MPD-2021 News

    Good news awaits the private land owners in the national Capital. In a bid to facilitate planned development of private land in the Capital, a notification has been issued by the Delhi Development Authority (DDA) enabling private land owners to develop their land holdings in conformity to the land use as per the Master Plan for Delhi with existing development control norms. The notification has been issued following the directions of the Ministry of Urban and Housing Affairs.

    This is the first time that policy for private land owners has been formulated in Delhi. This will enable civic agencies to provide basic amenities including roads, sewerage, schools and other basic infrastructure services on land owned by private persons as per Master Plan for Delhi 2021.

    Sources in the Ministry said that the policy will be applicable on the private land pockets which have been left over from the planned development, which could not be acquired, land pockets for which acquisition proceedings have been quashed by the courts, where acquisition lapsed as per Sub-Section 2, section 24 of new Land Acquisition, Rehabilitation and Resettlement Act, 2013.

    “To meet the growing demand of housing, the need of private participation is growing. To undertake development of the city, private partnerships are much needed. The new policy on private land owners will help the government and civic agencies to provide infrastructure as per the Master Plan of Delhi,” officials said. “The new norms will encourage public private participation in housing sector,” officials added.

    “This policy shall not be applicable on the areas falling in ‘Zone O’, covered under water bodies, land pockets falling under ridge, Regional Park, Reserved Forest Areas, Monument Regulated Zones, Lal Dora / Extended Lal Dora, disputed lands and land parcels which are already eligible for land pooling,” the notification said.

    It was envisaged as a public sector led process with very little private participation in terms of development of both, shelter and infrastructure services.

    “There is paradigm shift from land acquisition to requirement of private participation in the assembly and development process. To bring forward this reform, a policy has been formulated to enable the Planned Development of Privately Owned Lands such as private land pockets which have been left over from the planned development, whichcould not be acquired, land pockets for which acquisition proceedings have been quashed by the courts,” it said.

    Source: The Pioneer
    Dated: 9th July 2018


    Planned development of privately owned land in Delhi approved!

    Category : MPD-2021 News

    The regulations of the notification will help in boosting the development work in Delhi and the permission of private development will help Delhi to meet its target of being a world-class city soon. It will also accelerate the process of developing and residential complexes in the city.

    The Urban Development Ministry on Thursday issued a notification enabling planned development on privately owned lands in Delhi. According to the notification, development can be carried out on a private land that has not been acquired and is facing disputes related to the acquisition.

    The notification reads that a private development can be carried on the private land pockets on which the acquisition proceedings have been quashed by the courts. Private developments can also be carried out on private lands that have not been developed in accordance with the master plan and has not been acquired till date and is lying vacant for a long time.

    However, all these development work should be carried out in accordance to the master plan.

    The regulations of the notification will help in boosting the development work in Delhi and the permission of private development will help Delhi to meet its target of being a world-class city soon. It will also accelerate the process of developing and residential complexes in the city.

    Note: The notification in form of planned development of privately owned lands will lead to private developments in accordance to Delhi’s master plan on land pockets that are lying vacant since a long time even after being acquired or turned up to be a disputed as people opposed its acquisition and development was not allowed on it or land pockets for which acquisition proceedings have been quashed by the courts, among others.

    Source: Zee News
    Dated: 6th July 2018


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