The Delhi Development Authority’s (DDA) land pooling guidelines are far from being set but realtors in the city are already selling dreams to people who want to invest. DDA has come out with three ads warning people not to invest in land pooling projects.
nvestment schemes and ‘deals’ are already being sold to people in the city despite the guidelines under the land pooling policy, which allows multiple people to pool their land and hand it over to DDA for development of common areas and get a percentage of the land back for residential purposes, still being at the approval stage with the Union Urban Development Ministry. According to DDA officials, the main sticking point is currently the floor area ratio (FAR). While DDA has proposed allowing a FAR of 400, the ministry is favouring a FAR of 700. A higher FAR on a piece of land means permission to build more floors. A FAR of 700 means the total floor area can be 7 times the size of the actual plot. “The consultations on the guidelines are still on but as of now the FAR seems to be the biggest sticking point. The guidelines will take more time to materialise…,” said a senior DDA official. The authority has come out with three advertisements warning people not to invest in these projects. The last one was issued in the first week of March.
According to officials, the FAR is not the only reason why investing in these projects is a bad idea. “Even if the guidelines are passed, the land use of particular plots has to be kept in mind. It is possible that you give land in one area and the plot that you get is in another area. People have to remember that only 45%-60% of the pooled land will be returned… It is best to wait for the guidelines to be notified,” the official said. A number of these projects are coming up by forming registered societies. This, however, can backfire. “These societies, formed even before the guidelines were notified… can be challenged in the court. Many people have already invested in them but this has the potential to cause problems for them once the guidelines are notified,” said the official.
Source : Hindustan Times
Dated: 17th March 2015