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Does higher Delhi mean cheaper flats in NCR?
Source: Hindustan Times
Dated: 20th December 2011

The reason why real estate in Gurgaon and Noida is flourishing today is because land is scarce and hence expensive in Delhi. But with the Master Plan proposing vertical growth of the Capital resulting in a leap in housing, will prices of Delhi’s tony neighbours be affected? Most experts believe so.

The Master Plan intends to unlock large tracts of land pockets in Delhi, mostly in peripheral and untapped areas such as Narela, Najafgarh, Kanjhawla, Bawana and extensions of Rohini and Dwarka. Super tall structures are expected to come up in most of these areas with private partnerships, which would supply 14 lakh new housing units.

“Gurgaon and Noida are thriving today because no new housing was being developed in Delhi for many years. When new housing units in Delhi are made available, prices in the suburbs would be affected,” said AK Jain, former Commissioner (Planning), DDA. “In fact, most investors in Gurgaon and Noida are from Delhi,” he said.

The DDA has failed to provide affordable housing in sufficient number since its inception more than 50 years ago. The demand for housing was evident when more than 12 lakh people applied for the 16,000 flats offered by DDA in its housing scheme last year.

“It is a misnomer that Delhi has no land supply,” said Ramesh Menon, director of Certes Realty Limited, a real estate consultancy firm. “Land is being released for urbanisation in Delhi and Zone L (near Dwarka) and Zone N (near Rohini), are the key areas. “Of the 70,000 hectares of land being available, at least 25,000 hectares are meant for residential townships,” he said.

“While Gurgaon and Noida have to create demand, Delhi is sitting on captive demand,” Menon said.

There are others, however, who believe that even with an increase in housing supply in Delhi, Gurgaon and Noida wouldn’t be affected. “Gurgaon and Noida see a different kind of demand and cater to a different demographic. They have enough latent demand, which would not be impacted by additional supply of housing,” said Vineet K Singh, Business head, 99acres.com.

http://www.hindustantimes.com/India-news/NewDelhi/Does-higher-Delhi-mean-cheaper-flats-in-NCR/Article1-785041.aspx

 

Farm side story

There is no dearth of buyers for farmhouses even though prices jumped sharply after the extension of amnesty to those with unauthorised construction

Farmhouse owners in Delhi would have been overjoyed when the Parliament recently passed the National Capital of Delhi Laws (Special Provisions), Second Bill 2011, Provisions), Second Bill 2011, to make special provisions for the city for a further three years beginning January 1 this year. This extends the earlier act that was valid till last December. In simple terms, the new act extends by three years the amnesty provided by the previous one to farmhouse owners who faced action for unauthorised construction on their land and against acquisition of their farmhouses under any earlier notification.

According to a survey conducted by the Municipal Corporation of Delhi (MCD) a few years ago, there were 2800 farmhouses on about 7500 acres of land in the city. By last year, there were an estimated 3000-plus farmhouses spread over 10,000 acres of land. In the past two decades, the authorities notified about 5000 acres of land for acquisition in 13 villages. The farmhouses that were on the notified land stood to be affected.
The proposed acquisition matter was challenged in court. In 2009, the court held that the land could be acquired. There was much protest against the move for acquisition following which the government provided protection to the farmhouses with the rider that nothing was to change till the Delhi Development Authority (DDA) formulated a proper policy in consultation with the stakeholders. The deadline for this was December-end. The recent act extends this by three years.

Farmhouse owners were delighted last year when the government had tried to usher in a farmhouse policy that provided for regularisation of all farmhouses including those with unauthorised construction or those on notified land.
The then draft policy allowed farmhouses a built up area of 30% against the earlier 1% limitation. The greatest bounty that the draft provided was permission for farmhouses of specified sizes to have fitness centres, non-invasive health and naturopath clinics, amusement parks and resorts, among other things.

However, the draft was emphatically shot down by non-official members of the DDA comprising MLAs and municipal councilors from the Congress and the BJP. The members labelled and decried the draft as a shocking move for the benefit of farmhouse owners, many of whom are the rich and powerful.

As the draft was then seemingly shelved and a farmhouse policy is awaited, the government’s extension of amnesty for another three years did spell relief to the farmhouse owners in as much as that at least no action would be taken against unauthorised construction and that no land will be acquired.

Not all the non-official members of the DDA though are impressed by the extension of the amnesty. One of the nonofficial members, BJP MLA Harsh Vardhan, who is also former BJP Delhi president, said that the government ought to have framed a clear policy. Why just postpone a decision and keep the sword hanging on those affected?
The government needs to factor in the requirements for implementing the Master Plan and pave the way to build necessary infrastructure even if it means acquiring land for roads and other public benefit projects, he said.

Another non-official member, Congress MLA Subhash Chopra, who is also former Delhi Pradesh Congress Committee president, said the basic priority are the poorer sections, so the authorities should formulate schemes that would benefit them. The government should not drag its feet in formulating policies, he said.

Meanwhile, the price of farmhouses and farmhouse land has risen to unexpected heights. This is especially so in the wake of the recently passed bill that extends the amnesty period. Farmhouse owners who faced the prospect of action against unauthorised construction in their properties or possible acquisition were the ones who most benefited.

Since this also lifted the cloud of uncertainity on the fate of such properties, the prices appreciated enormously. A real estate agent Sandeep Chaudhury of Sagar Properties says that the price of farmhouses and farmland has grown three times what it was even six months ago. In West End Green in Rajokri, a two-and-half acre farmhouse could cost around R100 crore, he cited an example.

Interestingly even though prices have sharply climbed, there are no dearth of buyers.

A factor that has added to the upswing in prices is the low availability of farmhouse properties on sale. Real estate agents attribute two reasons for this pattern. One, farmhouses are owned by the super rich who do not really need the money. Second, those farmhouse owners who want to make a profit by selling their properties are awaiting the implementation of the Master Plans’s provision that permits a farmhouse on one acre of land. Till now farmhouses are only permissible on a minimum of two-and-half acres.
Once it becomes legal to have farmhouses on a smaller piece of land, many owners might want to carve out one-acre plots out of their farmhouse land and sell them separately and make much more money.

So, the farmhouses enjoy a charmed position in the list of the most prime real estate holdings.

Source: HT Estates
Dated: 4th Feb. 2012
http://epaper.hindustantimes.com/PUBLICATIONS/HT/HD/2012/02/04/ArticleHtmls/Farm-side-story-04022012235002.shtml?Mode=1

 

The Capital is a land of opportunities

The Master Plan is expected to throw up a huge supply of housing in the R20 lakh to R36 lakh range

 

For the uninitiated, the National Capital Territory of Delhi is Territory of Delhi is divided into 15 zones as per the new Master Plan. Out of these, A to H, P, M and K1 are in urban Delhi, while J, K2, L, N and P2 fall in what is known as an urban extension. Also, with the population expected to rise to 230 lakh by the end of this decade and the projected housing demand pegged at more than two million homes, which means a need for two lakh dwelling units a year (a requirement that government authorities may not be able to fulfill), the new plan seeks to focus on public-private partnerships and has a provision that provides for entry of private developers in the acquisition and development of `new’ Delhi land.

 

“We require 15 lakh dwelling units by 2020. The government does not have the capacity or the wherewithal to accomplish this task. Hence, the need for the private sector to step in,“ points out A K Jain, former Delhi Development Authority (DDA) Planning Commissioner. Interestingly, several leading private developers have already begun acquiring land in some of these new zones.
Private equity funds are also eyeing these new opportunities being made available in Delhi.

 

The Delhi Development Authority (DDA) is ready with a revised version of a policy that will introduce private players in the public infrastructure development domain.

 

Titled public-private participation in land assembly and development in Delhi, it is pending the lieutenant governor’s approval. The emphasis is on alternative modes of land assembly involving the private sector in the assembly and development of land and provision of infrastructure services. The policy stipulates that a landowner, or a group of land owners or a private developer will be “permitted to pool the land in an identified area or otherwise for unified planning and servicing“.

 

If implemented well, the Master Plan could turn out to be the biggest real estate opportunity of recent times.
However, the challenge, say realty experts, is how soon the government facilitates the participation of the private sector through clearances and level playing fields.

 

Rationalisation in prices Real estate experts are of the view that the new residential opportunities that the new Master Plan is likely to create will lead to rationalisation of residential prices in the surrounding areas. Delhi will throw up the largest supply of housing in the R20 lakh and R36 lakh price band due to the advantage associated with buying land cheap, today. Developers and investors who buy land now can afford to profitably provide supply in this price band. Delhi will compete with areas such as Gurgaon and Noida. The largest demand lies in the mid and affordable housing segment.

 

This is because of favourable land pricing. The surrounding markets are creating lowcost/affordable housing projects almost 60-80 km away from the CBD areas of Delhi, with low infrastructure and transportation connect. The Delhi opportunity would mean quality lifestyles, affordability through the MPD vision of integrated sub-cities. If one were to analyse the current real estate market scenario, one will find that while Gurgaon’s residential prices have shot up and Noida prices are under check due to fresh supply in the market, the huge land supply in Delhi may see projects being launched at R4500 to R5500 per sq ft in some of these new zones due to tough competition.

 

The lifelines of these new zones will be a 100-metre urban expressway road that will originate at NH 1 and cut through NH 10, NH 8 and go up to NH 2; and the UER 1 (which is 80 metres) and which will originate at NH 1 and cut through NH 10, to terminate at NH 8. It would be what the Noida-Greater Noida Expressway is for the eastern suburbs. Once the 100-metre UER-II is ready, driving to Rohini from the airport and south Delhi will just take 30 minutes.

 

The new green belt MPD 2021 envisages a number of changes related to the location (in the green belt) and construction of such types of properties. Out of the 15 zones, A to H, P, M and K1 are in urban Delhi and J, K2, L, N and P2 fall in `urbanisable’ area or urban extension.

 

The document stipulates that land up to the depth of one peripheral village revenue boundary along the border of National Capital Territory (NCT) would be maintained as green belt. New farmhouses will only be allowed in this green belt with the rest being put to use for forestry, agriculture, dairy farms etc.

 

Dated: 4th Feb. 2012
Source: Hindustan Times
http://epaper.hindustantimes.com/PUBLICATIONS/HT/HD/2012/02/04/ArticleHtmls/The-Capital-is-a-land-of-opportunities-04022012233002.shtml?Mode=1

 

Setting a vertical limit
Dated: 4th Feb. 2012
Source: HT Estates

While the Master Plan Delhi 2021 allows for third-floor expansion, its legality is dependent on the Supreme Court’s final hearing due in March

 

Here are various aspects to the construction of third floors Tin residential colonies, as provided by the Master Plan for Delhi 2021 (MPD 2021) in 2007. One of these is that the Supreme Court intervened and permitted vertical expansion only with riders.
Another one is that the MPD 2021 neglects the effect of the imminent third floor taking its toll on the everexpanding National Capital Territory of Delhi (NCT).

 

The MPD 2021 was notified by the Ministry of Urban Development, Government of India (MoUD) on the February 7, 2007. Consequently amendments were made from time to time. A master plan or the MPD 2021 is a blue print that provides guidance for the future extent and development of a city. Typically, master plans are reviewed every five years and it is reported that the MoUD is currently in the process of reviewing MPD 2021.

 

The story of the planned development in the NCT began in 1962, when its first master plan was formulated i.e. MPD 62, in line with the provisions of the Delhi Development Act, 1957.
Under this act and to promote the planned development of Delhi, the Delhi Development Authority (DDA) was constituted.

 

In 1982, the MPD 62 was revised to formulate the master plan 2001 and then revised once again in 2007 to formulate the MPD 2021.
One of the key developments proposed in MPD 2021 was the extension of the vertical limit for residential plots to 15 metres effectively permitting owners to construct third floors on top of existing premises.
However, blueprints specifying the future of urban development have often run into technical and practical problems.

 

Within a year, in its order dated March 14, 2008, the Supreme Court permitted owners to construct third floors subject to furnishing an undertaking to the relevant authorities (NDMC, DDA etc). The undertaking should state that, if the Supreme Court rules in the ongoing case (MC Mehta vs Union of India) that MPD 2021 is not in accordance with applicable laws, no equitable rights will be claimed by the owners in relation to construction of third floors in residential colonies. Further, transferees are also not entitled to any equitable rights. The matter is scheduled to come up for final hearing later in March this year.

 

However, some owners have already expanded their residential spaces in the hope that the Supreme Court will pass a favourable order and regularise their third floor constructions.
These owners run the risk of their vertical expansions being deemed illegal if the Supreme Court returns with an adverse verdict.

 

While vertical expansion contemplated under the MPD 2021 may provide for the development of the overall size and pattern of an urban settlement, it doesn’t seem to have accounted for other critical factors including physical infrastructure (roads, electricity, water etc), transport, environment and other institutional facilities. One of the terms for expansion of residential plots under the MPD 2021 provides that `additional number of dwelling units would be subject to payment of levy for augmentation of civic infrastructure’. It could be argued that the infrastructure should have been developed before the permission to construct the third floors. The organic growth of residential colonies have already stretched our resources and therefore the `planned development’ of high rises may result in the non-alignment of urban planning with availability of resources, resulting in higher costs to communities on the whole.

 

A master plan needs to orchestrate the development of physical and sustainable infrastructure to ensure that sustainable communities are delivered. Ayn Rand has said `a building has integrity just like a man and just as seldom’.

 

The author is a lawyer and urban planner with Trilegal, a legal firm based in India The planned vision The story of planned development in the NCT began in 1962, when its first master plan was formulated ie MPD 62, in line with the provisions of the Delhi Development Act, 1957 In 1982, the MPD 62 was revised to formulate the Master Plan 2001 and then revised once again in 2007 to formulate the MPD 2021 The issues at hand One of the key developments proposed in MPD 2021 was the extension of the vertical limit for residential plots to 15 metres effectively permitting owners to construct third floors on top of existing premises. In its order dated 14 March 2008, the Supreme Court permitted owners to construct third floors subject to furnishing an undertaking to the relevant authorities (NDMC, DDA etc).

 

The undertaking should state that, if the Supreme Court rules that MPD 2021 is not in accordance with applicable laws, no equitable rights will be claimed by the owners in relation to construction of third floors in residential colonies One of the terms for expansion of residential plots under the MPD 2021 provides that `additional number of dwelling units would be subject to payment of levy for augmentation of civic infrastructure’

 

 

 

Is there a need to review MPD 2021 ?
Dated: 4th Feb 2012
Source: HT Estates

Rapid population growth in the Capital region calls for a relook at the Master Plan Delhi 2021, writes Vandana Ramnani

Union minister for urban develn opment Kamal Nath recently d pointed out the need for a revir sion of Master Plan Delhi 2021, (MPD 21) hich was passed in vi 2006, saying it had not taken S account the ground realities it and argued that Delhi was th growing at a phenomenal pace ti and the existing plan had failed L to meet the needs of the city. n “The current plan has not m been able to cope with the city’s growth, leading to an s increase in unathorised u colonies, slums and jhuggim jhopris. The Master Plan does s not take into account ground th realities and population growth. There is need to bring p in modifications in land use p and development norms… it commercialisation along o major transport networks, like the Metro, should be a taken up,“ he said. The minister also added th that the government was tryh ing to draw future plans keepeing in mind the projected popth ulation growth. “The populad tion has increased and our si planning could not match that r pace. Now, we are trying to s plan taking into account what st the population size would be in 2015 or 2030. The Master Plan should not be created looking at the past 30 years, but should be created looking at the coming 30 years.“

 

Real estate experts point out that the minister’s statement should be welcome since he is talking about bringing contemporary and relevant changes to the many minor notifications on the MPD 2021.
“I do not think that Nath’s suggestion is to make wholesale changes to the MPD document, nor should it be read as scrapping the one already notified,“ says Ramesh Menon, director, Certes Realty Ltd, a real estate consultancy.

 

The MPD-21 was notified vide a government of India (No SO 141 dated Feb 7, 2007) and it cannot be scrapped unless the Parliament/other authorities approve the same.
Likewise, the zonal plans were notified in 2010 vide government orders.

 

The MPD and zonal plans should be read as guiding documents for the many various minor notifications, which are subject to “tweaking“ as per the local level requirements, hence, the need for a local area plan which is inclusive and participatory in nature, while it takes into account the tenets of the MPD, he says.

 

“The areas where the public at large should be debating with the UD ministry include the timelines that the minister has projected. Why should an empowered expert team need three years to look into the details? Also, let the discussion not just revolve on the residential segment, we need schools, industry, social infrastructure, hospitals, parks etc. The urban design as suggested by the MPD need not be restrictive in nature, and should be more global in perspective,“ Menon says.

 

According to Santhosh Kumar, CEO operations, Jones Lang LaSalle India, the review will have to take steps that will decongest the areas struggling to accommodate the ever-increasing population. It is also important to ensure that growth does not come about at the cost of overall character and skyline of the city. Second, measures should be taken to ensure that the infrastructure development is in tune with the planning so that the pressure on the civic amenities like water and electricity does not increase further.

 

But what is Master Plan 2021? Does it touch the life of the common man in any way?
What is in it for him? The MPD 2021 envisages creation of five new sub-cities, to unlock 60,000 hectares for development and redevelopment for throwing up a large supply of housing within the city. It looks at creating these new sub-cities within Delhi, bigger than Dwarka and Rohini.

 

The Gurgaon-Noida story was based on the premise of lack of availability of land in Delhi. It was the absolute dearth of land in Delhi that forced people to look for options in the periphery. The new Master Plan is likely to change all that. What one knows as NCR (National Capital Region) could soon be redefined as the NCT (National Capital Territory).

 

 

 

 

http://epaper.hindustantimes.com/PUBLICATIONS/HT/HD/2012/02/04/ArticleHtmls/Is-there-a-need-to-review-MPD-2021-04022012233001.shtml?Mode=1

 

Get building plan nod in 2 months
Source: Times of India
Dated: 14th January 2012

NEW DELHI: Getting your building plans sanctioned won’t be caught in red tape. NDMC has now brought six more crucial citizen-centric services under the ambit of the Service Level Agreement (SLA). Since December last year, the agency has started processing applications related to sanctioning of building plans, electricity and water connections, booking of community centres and parks, birth and death certificates and health trade licences , in a time-bound manner.

Now, building plans will be sanctioned within 60 days.

“By bring these services under SLA, we are trying to streamline the functioning of these departments, so that people don’t have to face any inconvenience. While sanctioning building plans, multiple parameters like Master Plan Delhi-2021 , zonal plan, building byelaws and guidelines regarding Lutyens’ Delhi have to be taken into account. We get close to 20-30 such applications per day,” said Santosh D Vaidya, secretary, NDMC.

Health trade licences – which are mandatory for all eateries in NDMC areas – will be issued within 60 days.

In September last year, the civic agency had brought two services under SLA. NDMC officials say that electricity and water connections will now be given within 30 days. “Community halls can be booked in seven days and parks can be booked on the same day itself. We want to ensure that an efficient system is in place before we take our services online,” said Vaidya. “In the last few months, we have received close to 22,000 applications under SLA and a majority of these have been cleared,” said Vaidya.

Meanwhile, NDMC is planning to upgrade its infrastructure with an aim to boost revenue generation.
The agency has started the process of upgradation of barat ghars, parks, development of 78 playfields for children, a new working women’s hostel and an old age home. “So far, work on 13 playfields is complete,” said Vaidya.

 

Single-window clearance for buildings soon
Source: Times of India
Dated: 12th January 2012

NEW DELHI: Getting the requisite clearance for your building will soon be a breeze. Delhi Urban Arts Commission (DUAC) is working on a draft proposal that recommends simplification of building bylaws and setting up of a single-window clearance system. The proposal will be sent to the urban development ministry.

The body is also toying with the idea of establishing a committee of independent architects to evaluate the merits of buildings which do not follow bylaws and consider whether they should get a waiver.

DUAC chairperson Raj Rewal said the present system of getting permission for new buildings is not only complex but also long-winded. “At present, building bylaws require multiple approvals of fire authorities, airport authorities and Archaeological Survey of India. It’s a long procedure,” said Rewal.

 

3 ring roads to link city with highways
Source: Times of India
Dated: 4th January 2012

NEW DELHI: Driving to national highways may be a breeze soon. DDA is planning three concentric ring roads that will connect the city with national highways, thus cutting down on travel time to the NCR.

These roads will be built as the urban extension roads (UER) under Master Plan Delhi though DDA said issues of land acquisition have to be settled. “We are working on a plan to build concentric ring roads so that people can approach the national highways in 10 minutes,” said G S Patnaik, vice-chairperson, DDA. These UERs will connect NH 1 to NH 8, NH 10 and NH 2.

Though Haryana chief minister Bhupinder Singh Hooda had alleged that DDA was not taking any steps to construct link roads between the capital and Gurgaon, Patnaik on Tuesday clarified that three link roads had already been included in the zonal plans.

These roads will connect Vasant Kunj to DLF-III, Dwarka to Kherki Dhaula on NH 8 and Najafgarh to Rajiv Gandhi Education City in Sonipat.

Patnaik also said that the review of Master Plan Delhi is on with DDA already receiving more than 2,000 suggestions and complaints from experts and the general public. DDA vice-chairperson G S Patnaik said on Tuesday that 17 management action groups had been formed to carry out the review process besides an advisory committee and an advisory group working under lieutenant-governor Tejendra Khanna.

“This group comprises town planners, experts and various officials. The suggestions received will be considered by the advisory committee while reviewing Master Plan 2021,” Patnaik said. According to DDA, all suggestions will be compiled and put up on its website.

He also said that DDA favoured transit-oriented development (TOD) along Metro Corridors and that Delhi Metro Rail Corporation has already started a survey at Karkardooma station as well as at Mehrauli-Gurgaon Road.

The project includes construction of high-density residential, office and commercial units along the Metro corridor. Patnaik said that DDA favoured the project as it will bring people closer to the Mass Rapid Transit System discouraging them from using their own vehicles and adding to the traffic.

Talking about the projects undertaken and planned by DDA in the year gone by, Patnaik also said that 53 community centres will be constructed across the city and work on 19 of them was already underway.

Work on building 20,000 houses for the economically weaker section (EWS) using prefab technology has already begun while the construction of 24,000 flats for the Lower Income Group (LIG) is likely to start soon.

“In all, over one lakh EWS and LIG flats would be completed in the next three years. These units are at various stages of planning and construction,” Patnaik said.

He insisted that DDA was giving priority to EWS and LIG housing to reduce the number of illegal colonies in the city.

Though there are plans to introduce housing scheme for the middle class too, Patnaik refused to share the details. However, he added that 12,000 demand letters had been issued to allottees.

The remaining 4,000 allottees will get them in the coming weeks. A socio-cultural centre on the lines of the India Habitat Centre is also in the pipeline in Dwarka.
http://timesofindia.indiatimes.com/city/delhi/3-ring-roads-to-link-city-with-highways/articleshow/11357239.cms

Does higher Delhi mean cheaper flats in NCR?
Source: Hindustan Times
Dated: 21st Dec. 2011

The reason why real estate in Gurgaon and Noida is flourishing today is because land is scarce and hence expensive in Delhi. But with the Master Plan proposing vertical growth of the Capital resulting in a leap in housing, will prices of Delhi’s tony neighbours be affected? Most experts believe
so.

The Master Plan intends to unlock large tracts of land pockets in Delhi, mostly in peripheral and untapped areas such as Narela, Najafgarh, Kanjhawla, Bawana and extensions of Rohini and Dwarka. Super tall structures are expected to come up in most of these areas with private partnerships, which would supply 14 lakh new housing units.

“Gurgaon and Noida are thriving today because no new housing was being developed in Delhi for many years. When new housing units in Delhi are made available, prices in the suburbs would be affected,” said AK Jain, former Commissioner (Planning), DDA. “In fact, most investors in Gurgaon and Noida are from Delhi,” he said.

The DDA has failed to provide affordable housing in sufficient number since its inception more than 50 years ago. The demand for housing was evident when more than 12 lakh people applied for the 16,000 flats offered by DDA in its housing scheme last year.

“It is a misnomer that Delhi has no land supply,” said Ramesh Menon, director of Certes Realty Limited, a real estate consultancy firm. “Land is being released for urbanisation in Delhi and Zone L (near Dwarka) and Zone N (near Rohini), are the key areas. “Of the 70,000 hectares of land being available, at least 25,000 hectares are meant for residential townships,” he said.

“While Gurgaon and Noida have to create demand, Delhi is sitting on captive demand,” Menon said.

There are others, however, who believe that even with an increase in housing supply in Delhi, Gurgaon and Noida wouldn’t be affected. “Gurgaon and Noida see a different kind of demand and cater to a different demographic. They have enough latent demand, which would not be impacted by additional supply of housing,” said Vineet K Singh, Business head, 99acres.com.

 

Govt to set up shelters, respite for homeless
Source: Hindustan Times
Dated: 28th Nov. 2011

Thousands of labourers, who have been spending their nights on footpaths, will soon get relief from the biting chill. The Delhi government has decided to construct dormitories to provide accommodation to the destitutes during winters. A significant part of the city’s homeless population comprises labourers and migrants, who use temporary night shelters or take refuge on footpaths.

The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) has chalked out a plan to construct transit accommodation for construction workers and labourers.

A detailed project report, under which five-bedded dormitories will be constructed to accommodate 10,500 people and 10-bedded ones for 9,520 people, has already been prepared. The proposal has been sent to the urban development department for approval.

The city’s 64 permanent night shelters are inadequate to accommodate the homeless population, estimated to be more than one lakh.

“Most night shelters are used by construction workers and labourers, who are unable to afford rented accommodation. Land has already been allotted to the DSIIDC to construct houses for people belonging to the economically weaker section of society,” said a senior Delhi government official.

Land for constructing transit accommodation has been provided in the Kanjhawala area. According to a government data, Delhi’s homeless population is estimated to be around one lakh. To ensure proper maintenance of these dormitories, it has been proposed to give them on rent to construction firms.

“It is a welcome step. But transit shelters should be available in central Delhi too. Placing them in the border areas, where there is hardly any livelihood option, is not a good idea,” said Indu Prakash Singh, technical advisor of Indo-Global Social Service Society, which deals with urban poverty and homeless.

The five-bedded dormitories will be built at a cost of Rs 201 crore and the 10-bedded ones at Rs 160 crore. For the funding, 50% of the cost will be financed under the Rajiv Awas Yojna, 25% by the Delhi government and 12.5% by the DSIIDC. “Money collected under the labour welfare fund can be utilised for this purpose,” he said. Unlike night shelters, the dormitories will provide space to occupants to keep their belongings.

 

 

DISCOURAGING POLLUTION – Delhi to have Rs 3,100 cr manufacturing hub
Source: Hindustan Times
Dated: 22nd Nov. 2011

The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) has chalked out a plan to make Delhi an advanced industrial state as far as the non-polluting manufacturing sector is concerned.

“We intend to generate large number of employment opportunities in rural as well as urban areas in Delhi. The rural belt in Delhi will be developed in such a way to overshadow the existing industrially and IT developed neighbourhood,“ said Delhi Industries Minister Ramakant Goswami while addressing a press conference.

In order to encourage nonpolluting small and medium industries in Delhi, the DSIIDC is setting up a very large multilevel manufacturing hub in northwest Delhi, which will be located on an area of 150 acres.
The estate will be developed with an estimated cost of R3,100 crore at Rani Khera, Goswami said, adding that the construction will start in nine months.

“The project site will be connected with the Metro stations.
It will cater to specific needs of IT, media research, gems and business services,“ he said.

A new route to Gurgaon
Source: Economic Times
Dated: 18th Nov. 2011

Delhi-Gurgaon commuters can expect a smoother ride in a few years’ time, with planners proposing a new 2.7 km road connecting the Mehrauli-Mahipalpur Road to the NH-8 junction near Shiv Murti that would provide a third link to the Millennium City and also ease traffic to Dwarka.

The proposed 60- to 75-metre-wide track is expected to be built under the ‘urban relief road’ concept introduced in Master Plan Delhi 2021 for providing quick solutions to clear bottlenecks. Sources said the city’s transport infrastructure authority has asked the Public Works Department to examine a conceptual connectivity proposal presented by architect Sudhir Vohra, in consultation with NHAI and other agencies.

“It was felt there’s a need for a new relief road to decongest NH-8 and also to connect Dwarka sub-city through the Mehrauli-Mahipalpur Road, although this road does not figure in the zonal plan of Zone-J ,” said a PWD source. This 2.7km road being planned which will connect the Mehrauli-Mahipalpur Road to the NH-8 junction near Shiv Murti, could coon see Delhi-Gurgaon commuters heaving a sigh of relief.

According to the proposal, the road will link Mehrauli-Mahipalpur Road to NH-8 at the Shiv Murti junction, where an underpass will also provide a connection to the Dwarka Link Road. This will enable Dwarka commuters to avoid the heavily congested Rao Tula Ram Road and the airport stretch. The road will largely pass through uncultivated government land and will be complete with service lanes and other street design features laid down by UTTIPEC.

The road will ease the flow of traffic at the three major bottlenecks that form on the Outer Ring Road – near RTR,near the airport and on NH-8 . “As commuters bound for Dwarka and Gurgaon can take the new road, the outer Ring Road will become clearer for the airport traffic ,” said a source.This proposed stretch will be wide enough for trucks to pass and the direct connection to Dwarka will allow the Dwarka Link Road to act as a fast transit, as was the original plan, a source said.

 

MCD sanctions first online building plan
Source: PTI

New Delhi: In a significant step towards e-governance, the the Municipal Corporation of Delhi (MCD) on Friday sanctioned its first building plan applied online. With this, the MCD has become the the first local body in the country to introduce the system of approving building plans online, MCD Commissioner K S Mehra said.

Launched on November 1, the online scheme has become operational with a building in Vasant Vihar being the first to be sanctioned, he said, adding the facility would soon be extended to the zonal offices. The scheme was so far restricted to fresh proposals in respect to properties measuring 400 square yards and above.

Additional Commissioner (Engineering), Manish Gupta said the unique software scrutinises the drawings as per the building laws included in the Master Plan-2021.

“From December 1 onwards, the facility will be extended to two zonal offices in south Delhi and Rohini and from January 1 to other zones,” he said.

 

3 bus clusters to be launched by Nov 14
Source: Hindustan Times
Dated: 10th Nov. 2011

The next cluster bus service — to benefit north and west Delhi commuters — is all set to be functional by November 14. The next service will include clusters 3, 4 and 5. The transport department will make functional a total of 300 new buses.“The next service will start operations from November 14 from the Kanjhawala depot. A total of 400 buses will ply in the city under the cluster service by this year-end. This will take off load from the existing buses. Another depot near Rajghat is also being prepared which will be used for the first cluster buses,” said Arvinder Singh, Delhi transport minister.

For cluster 3, 182 buses will ply on 29 routes; for cluster 4, there will be 148 buses on 20 routes; and in cluster 5, 120 buses will run on 20 routes. Clusters 3, 4 and 5 will be launched before cluster 2 as the depot in Kanjhawala in northwest Delhi falls near the cluster routes.

The fate of the other bus clusters is still uncertain as no other depot is ready. About 17 clusters were to be launched in Delhi. So far, only one cluster in south Delhi is operational. This cluster on which 100 buses ply was flagged off in May this year. The launch of the first cluster too had been delayed due to a lack of depot space.

The plan to divide all the 650 routes in the city into clusters and let a consortium of private investors operate them was mooted a few years ago.

The project, however, had got mired in various controversies and been delayed several times.

Delhi Integrated Multi-Modal Transit System (DIMTS) is the consulting company that drafted the scheme for corporatisation of private bus operations and will supervise cluster bus operations on behalf of the Delhi government.

Delhi’s 657 bus routes have been divided into 17 clusters. More than 4,400 buses would be run in these 17 clusters.

 

 

Will `country’ homes get popular after the circle rate hike?
Source: HT Estates
Dated: 5th Nov. 2011

With the Delhi Government increasing the circle rates from 15% to 250% to check black money deals, the focus may now black money deals, the focus may now shift to acquiring plots to build country homes in the green belt land to be released in zones N and L under the new Master Plan (MPD) 2021.

Under the country homes policy, currently under consideration by the government, there is a proposal to allow almost 7000 sq ft of construction per acre of land. The last peripheral village of Delhi is earmarked as the green belt wherein farmhouses and country homes will be permitted.
Approximately 11000 hectares of land in Delhi are part of the green belt. This would be much lower than the price of builder floors in Category-A areas and would shift the market towards legitimate construction of farmhouses and country homes.

Currently, prices in areas such as Defence Colony, Greater Kailash, cost anything between R8 crore to R10 crore per dwelling unit of size 2000 sq ft. A 2.5 acre farmhouse in the Chattarpur area could cost more than R30 crore.
“In the new zones N and L under MPD 2021, a farmhouse of 2.5 acres, constructed as per the new norms, will cost almost one fourth the price in these areas,“ says Ramesh Menon of Certes Realty.

 

Increase in circle rates in Delhi might have a negligible impact on property prices, but registration will be an expensive affair, says Vandana Ramnani
Source: HT Estates
Dated: 5th Nov. 2011

There’s been yet another hike in circle rates in Delhi this week and it ranges from 15% to 250%. While the intent is to grow the government’s coffers, realty experts make a surprising prediction: Its impact on property prices will be marginal.

So, what has the circle rate increase been like? Category-A areas (such as Defence Colony) have seen the highest rate hikes ­ of as much as 250%. For categories B, C and D, areas such as Kalkaji, East of Kailash and Dwarka, the increase has been 100%. Category-C areas such as Karampura will see an increase of 25%. Rates have gone up 20% in Category-F areas such as Ashok Nagar Extension, and in categories G and H, such as Azadpur and Kanjhawala, the increase is 15%. What this means is that nobody will be allowed to buy land or property in these areas below the rates specified.

The good news is that the move will not send property prices spiralling, and the impact will be felt marginally at less than 1%.
Homebuyers will, however, have to pay more for registration. Since the minimum stamp duty on sale of property is calculated basis the prevailing circle rate, an increase in circle rates will automatically push up the minimum stamp duty liability. This may have a negative impact on buyer sentiment but only for the short-term. There’s also a likelihood of sellers trying to push prices up to make gains but that again depends on how willing a buyer is to shell out that kind of money.

“Registration of property will definitely become a costly affair while property valuation will move closer to fair or market value,“ says Sachin Sandhir, managing director and country head of the Royal Institution of Chartered Surveyors (RICS), India.

For genuine buyers, the increase in circle rates is a positive move because it will help them avail higher loans from banks as banks disburse loans on the basis of sale deeds that take into account the circle rate while getting an estimate of property prices. Buyers can avail up to 80-85% of the total circle rate as home loans are extended only on the basis of the white component of the amount involved in the transaction.

Circle rates usually have a differential impact on primary and secondary residential deals. The primary market deals that are usually direct deals between builders and buyers are primarily all-white deals and the increase in circle rates is unlikely to have any direct impact on the volumes and sales of such transactions.
However, in case of deals in the secondary market, which are second-hand buys and where the white component is proportionately lower in the total transaction value, the cost of residential units may increase marginally for the buyer.

 

Supreme Court realty order will cut down stamp duty evasions
Source: Times of india
Dated: 14th Oct. 2011

GURGAON: The Supreme Court order barring all property sale transactions through general power of attorney (GPA) is being seen as a positive move towards curbing pilferage in stamp duty.

It is also likely to prove a major deterrent for those who park their “black money” in “benami” properties and control property-related frauds. Haryana has a revenue policy which does not allow registration of GPA in the names of individuals other than blood relations. However, the loophole still remains that GPAs can be registered for a minimum payment of Rs 100 in other states.

Selling property on GPA affects the exchequer since the sellers and buyers evade paying stamp duty valid on registry, said Gurgaon deputy commissioner P C Meena. “Though we have not received the order, it will definitely help in cutting down on incidences of stamp duty evasions,” he added.

Meena said that GPAs were helpful in cases where the owner might be a frequent traveller or living abroad or in any other part of the country to take care of or make sale and purchase of his immovable property.

Joint police commissioner Aloke Mittal, who heads the economic offences wing (EOW), said, “We have been receiving a high percentage of complaints related to property frauds carried out on GPAs. This is not a secure document and does not validate ownership.” He added that property frauds can be carried out based on GPAs.

Said Ramesh Menon, director, CERTES Realty Ltd, “With the Land Acquisition (Resettlement and Rehabilitaion) Bill under consideration, this judgment would accord clarity and reduce litigation when the government has to acquire land parcels for development, and the compensation would be delivered to the right owners of land. It also lends guidance to the longstanding demand for parity and rationalization of stamp duties across the country.”

According to Ruchika Bhardwaj, lead analyst of a portal Delhifarms.com, in the short term, the transaction volumes are likely to fall, till the clarity about this judgment reaches the tehsils/end buyers.

“Also, the prices are likely to correct downwards in the many unauthorized colonies and legitimate areas like Lal Dora, urban villages have to start announcing their correct valuations.”

However, this might pose a problem for buyers/ sellers of independent floors built on plot sizes less than 180 sq yards as the state policy does not allow the registration of sale/conveyance deeds of such sales. These properties continue to be sold on GPAs, etc. Other than these, plots in unregularized colonies are sold on GPAs.

However, since bank loans are unavailable on such properties, they have a much lower value compared to the market prices.

Click here to download SC order

 

 

DDA plans modifications in Delhi masterplan
Source: Indian Express
Dated: 12th Oct. 2011

In order to revisit specific provisions of the Master Plan Delhi (MPD)-2021 and facilitate modifications, which could not be foreseen during the formulation of the plan, the Delhi Development Authority (DDA), has invited public suggestions for mid-term review of MPD-2021. According to the land agency, this review is being undertaken to provide realistic corrections and modifications in the Master Plan policies, norms and the implementation procedure to suit the changing needs of the society.

“The notice inviting public suggestions was published on October 4. The Master Plan has been planned with a vision and policy guidelines for the perspective period of twenty years. It emphasises on public participation and periodic or mid-term review. The review would facilitate modifications and revisiting of specific provisions of the plan that could not be foreseen or anticipated during the plan formulation,” said DDA spokesperson, Neemo Dhar. A period of 45 days has been provided to people to come forward with suggestions or views on specific aspects of the plan. According to the DDA, however, not too many people have come forward till date.

“The L-G also took a review meeting of the Master Plan. Several experts also attended these meetings to give their views on the kind of amendments that need to be made in the plan. Committees will be formed to look into the feasibility of these suggestions before they are included or rejected,” said a DDA official.

The Master Plan Delhi-2021 came into force in February 2007, and many of the plans under the MPD like construction of the urban extension roads, formulation of land policy are still being worked out etc. “It was made for a period of 20 years and very broad guidelines were set under it. Changes will be made to it if felt necessary,” added the official.

Farmhouse policy: Discussion deferred till November 3
Source: Times of India
Dated: 17th Sep. 2011

NEW DELHI: The farmhouse policy was to be taken up for discussion in the Delhi Development Authority meeting on Friday. However, the matter was deferred until the next meeting on November 3 as Delhi government wanted more time to submit its views on the proposed amendments.

The non-official members were against the regularization of nearly 2,400 farmhouses built beyond permissible area in places like Mehrauli, Chhatarpur, Neb Sarai, Ber Sarai and Satabari. These members said they were prepared to vote against the policy though it was deferred even before any discussion.

“The farmhouse policy matter has been deferred till the next meeting which is scheduled on November 3,” said Subhash Chopra, MLA and non-official member of DDA. Another non-official member, MCD councilor Rajesh Gehlot, added, “The proposed amendments in the policy like regularization, construction of country homes and commercial establishments will need an amendment in the master plan too.”

 

Land acquisition bill tabled in Parliament on 7th September 2011

 

Land Acquisition Bill: Will new land law hurt realty sector?

Source: Economic Times
Dated: 17th Sep. 2011

The new land policy cleared by Union Cabinet could lead to a big gap between demand and supply. Paying compensation four times the highest amount of registered sale in the area in last three years is only going to increase the cost of setting up the industrial establishments, infrastructural projects and townships, believe real estate firms.

If the bill is passed in its proposed form, it will badly hurt the realty sector and urban development, apart from, practically, ending the dreams of affordable housing for the middle class segment.

The new bill, meant to replace the 117-year-old Land Acquisition Bill of 1894, which has been introduced in Parliament, will mean private companies will have to give relief and rehabilitation packages to displaced people even if they directly buy land from landowners, for all transactions over 50 acres in urban areas and 100 acres in rural areas.

There is still confusion and dissatisfaction over acceptance of new land bill by real estate firms. The Confederation of Indian Industry (CII) has already expressed concern over the appreciation value set in the Land Acquisition Bill and said that the proposed value would make land cost economically unviable for industries.

Navin M Raheja, the chairman and managing director of the Raheja Group and chairman of Assocham , says: “Acquisition of land with consent of landowners is a welcome step. But paying compensation four times the best of the registered sale in the area in last three years is only going to increase the cost of setting up the industrial establishments, infrastructural projects and townships. This could also lead to a big gap between demand and supply. There must be an open debate of all the stakeholders like the industry , the government, the landowners and also the media to device a path which is transparent and pragmatic.”

“States should be required to put up land for development on e-portals (land offers for development projects) through a website or any other mechanism accessible by everyone, where the landowners can collectively offer their land for sale with the price demanded, so that the industry and the government are free to negotiate with farmers,” Raheja said.

Pankaj Bajaj, the president of CREDAI (NCR) opposed the proposed relief and rehabilitation package, and said: “The new bill will badly hurt the realty sector and urban development, apart from practically ending the dreams of affordable housing for middle-class segments, as provision of the Land Acquisition Bill make homes for the common man much more costly. Relief and rehabilitation package for private companies should be done away with. Acquiring private pockets in a housing project should be defined as public purposes.”

Rakesh Yadav, the managing director of the Antriksh Group, says: “Apart from real estate firms, the cost of production of industrial units will also go up due to high capital cost of setting up factories. The financing of these activities will be tough, too, as there are no norms for financing the land cost.”

Mohit Arora, the director of Supertech Group, says: “In most cities like the metros, Tier 2 & 3 cities, government-acquired land for infrastructure and industrial development, the burden and cost of social and industrial development will be considerably enhanced through this bill. As a result , the infrastructure and industrial development will become slow and expensive.”

Prasant Solomon, joint managing director of Chintels India Ltd (which has the largest land bank of 400 acres in Dwarka-Gurgaon Expressway), says: “This policy will also adversely affect the real estate development as additional burden of land cost will make housing expensive. In fact, land in the open market too would become expensive.”

Impact of new bill

As far as the farmers are concerned , it is the best time for them to encash upon this opportunity, especially in the NCR’s Noida-Greater Noida, Gurgaon, and Faridabad areas. Having gained great visibility after the current land row, the farmers of Noida and Greater Noida are trying to encash in upon the government’s pro-farmer mood and obtain the best possible compensation for their lands, which have been acquired by the authorities concerned .

After the clearance from the Union Cabinet, farmers everywhere are holding panchayats (village-level meetings) and demanding compensation as per the new land bill. “New bill recommends enhanced compensation, four times its market value in rural areas and two times its market value in urban areas the existing compensation package. It also recommends an attractive rehabilitation and resettlement package for displaced people. Why then should we not take advantage of the new law,” said Vilram Kasana, a farmer leader.

Ram Gopal Gupta, a former senior city planner and policy maker at DDA, says: “To deal with land-related issues, the government is in the process of formulating a new law. Land acquisition and rehabilitation and resettlement (R & R) need to be seen necessarily as the two sides of the same coin. A R & R must always, in each instance, necessarily follow land acquisition. Not combining the two, R & R and land acquisition within one law, risks neglect of R & R. This has indeed been the experience thus far.”

Land policy in the NCR

Under the new policy (being implemented in UP and Haryana), the authorities concerned like Noida-Greater Noida and Yamuna Expressway Industrial Development Authority (YEIDA or YEA) in Noida-Greater Noida, Haryana Urban Development Authority (HUDA) in Gurgaon and Faridabad have to face extra burden .

In these circumstances, the development authorities will be forced to hike the existing rates. It is expected that the district administration is also planning to revise the circle rates (as projected 25-30 % hike in the existing rate). According to the new acquisition policy, which is being implemented in UP and Haryana, both are already facing an extra burden .

Anil Sharma, the chairman and managing director of the Amrapali Group and vice-president of CREDAI (NCR), says: “The new land acquisition policy of both the neighbouring states (UP and Haryana) has already been framed to safeguard the interests of farmers. This is a historic moment and effort should be made to get it implemented at the national level, instead of the proposed new land acquisition bill (cleared by the Union Cabinet).”

Land acquisition policy of Haryana

Builders and developers can directly purchase land from farmers . For this, builders and developers have to get a no-objection certificate (NoC) from HUDA. Like in UP, the Haryana state government , too, will not interfere in the deals being negotiated with the owners of the land on the price.

The landowners will now be paid an annuity of Rs 21,000 per acre per year, which will be increased at the rate of Rs 750 every year for a period of 33 years. The annuity for acquisition of land for private companies will be Rs 42,000 per acre per annum with an annual increase at the rate of Rs 1,500 every year.

Regarding allotment of residential plots against acquisition of built-up residential structures, where any government department resorted to acquisition of self-occupied residential houses for unavoidable reasons, the owners would be entitled to assured allotment of residential plots.

In the new policy of Haryana, there is also a provision for benefits of minimum floor rate (MFR). For this, the state has now been divided into five zonal brackets. Under the new policy, for land situated within the notified limits of Gurgaon Municipal Corporation, the new MFR has been fixed at Rs 72 lakh per acre, including Rs 8 lakh as no-litigation incentive. In this way, a farmer in Gurgaon will now get up to Rs 72 lakh for an acre of his land.

For land situated within the notified limits of Faridabad and Panchkula Municipal Corporations , areas forming part of the development plans of Gurgaon-Manesar Urban Complex (excluding the areas falling within the limits of Gurgaon Municipal Corporation), Sohna, and Sonipat-Kundli Urban Complex, the MFR has been fixed at Rs 54 lakh per acre, including Rs 6 lakh as no-litigation incentive.

Highlights of the new Union land bill

The states are free to frame their own laws and if they so desire, are free to improve upon the provisions stipulated under the proposed bill. It allows flexibility to the state government on whether or not to intervene on behalf of private players in land acquisitions .

The urgency clause can only be invoked in national defenses and for security purposes; R&R needs in the event of emergencies or natural calamities. Now, farmers will get only four times the market price in the rural areas while in urban areas it will be double the market price.

In any case, the R&R package will be applicable only when the private parties acquire 100 acres or more land in the rural areas and 50 acres or more in urban areas.

The promised R&R for those subsisting on the acquired land will now be applicable only to those who have been eking out a livelihood for at least three years on that piece of land. Earlier, all those sustaining themselves on the acquired piece of land were made eligible for compensation.

While the purpose of acquisition can’t be changed, the bill, however, now allows transfer of land with the approval of the state government; if the transfer is made without any development of the land, the farmers will have to be paid 20% of the appreciated value.

The bill specifies timelines for the payment of compensation. The price of land has to be paid within three months of the award, and the other monetary compensations within six months and the infrastructure entitlements under the R&R package within 18 months. Penalties will be levied on violation.

 


 

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