DDA finally approves land pooling policy

    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


    You might end up being a victim of fraud if you invest in a property in Delhi’s land pooling zone

    Despite warnings, people are buying apartments being sold as lucrative investment options

    Check that advertisement for that beautiful apartment being sold for a great price, and that too in the Capital. Do find out more about the zone it is located in and then check the Delhi Master Plan 2021. If your builder tells you the project is in the land pooling zone, and that you can make a good profit from it, understand that you might end up being a victim of fraud. If one goes by the recent public notices of Delhi Development Authority (DDA), such offers are illegal and homebuyers are advised to stay away from them.

    A builder recently announced the launch of a project in L-Zone, Dwarka. Newspaper advertisements of the projects also offered a buyback policy with 25% interest in two years. L-Zone falls in the land pooling zone, but DDA has just prepared the draft regulation of the land pooling policy and it is yet to be notified – no developer can as of now own land in this zone.
    A number of public notices have been issued by DDA, warning people to stay away from “any illegal offer of registration of plots/flats under the land pooling policy”.

    “The general public is hereby cautioned that for any sector within a zone (specific area) to qualify under land pooling policy, minimum 60% land needs to be made available by the developers. Besides, the final plot shall be carved out either within the sector or nearby in the concerned zone in which the application for participation in the land pooling has been made. The final plot allotted to the developer entity may not constitute part of the original plot. Therefore, the claim of coverage of a specific area under the scheme or availability of land in a specific location by developers cannot be made at this stage. The general public is, therefore, warned not to get tempted by such attractive offers/schemes for housing under land pooling policy,” says the DDA notice.
     
    Dozens of developers, however, are putting up stalls to sell projects. Several welfare societies have also come up, inviting potential buyers to invest in land. HT Estates, on October 18, 2014, had reported how hundreds of welfare societies had been registered after 2007 when the Delhi Master Plan (MPD 2021) had been notified, laying down land pooling policy norms and earmarking five zones in the Capital – J, K (I&II), L, N and p (I&II).

    Though the Urban Development Ministry has given its nod to operational guidelines for the land pooling policy, several hurdles still remain in its implementation. The most difficult hurdle at the moment seems to be the conversion of 89 revenue villages into urban villages. The next hurdle will be identifying and demarcating 20,000 hectares for development, which will be done by the land and building department of the Delhi government. Only when these two notifications are in place will DDA be in a position to invite applications from developers for handover of their land with it.

    Says Sidharth Luthra, a senior criminal lawyer and former additional solicitor general of India, “The practice, adopted by developers, is what is known as a pre-launch. Typically, a builder starts marketing the flats that he will build in the future even before the plans are approved by the municipal authorities or other plan-sanctioning authority. The builder does not execute any agreement with the buyer for the simple reason that there is no flat he can sell. Usually, non-binding documents such as ‘expression of interest’ or ‘memorandum of understanding’ are made by the builder, which offer little or no protection to the buyer in the event of any dispute with the builder.”

    So can action be taken against such pre-launches in Delhi? Real estate and legal experts are of the view that such advertisements and sale are illegal and preventive action must be taken by DDA.
     
    Delhi Police on its part cannot do anything until it gets a complaint from an aggrieved party. According to DCP (west Delhi), Pushpendra Kumar, “Delhi Police can’t take any preventive action in such cases. We can act only when an aggrieved person will lodge a complaint with us.”

    However, Balvinder Kumar, former vice chairman, DDA, is of the view that DDA is in a position to take legal action against such builders. “This amounts to fraud. DDA has advertised time and again and cautioned people not to invest money in these projects but people are still doing that. I think DDA must take preventive measures. It is high time DDA takes legal recourse to address the problem.”

    Pradeep Mishra, CMD, Rudrabhishek Enterprises Pvt Ltd, a town planning and architectural consultancy firm, advises buyers to be careful. “Unfortunately, despite repeated public notices, people are driven by greed to make money by investing in any real estate projects which promise them huge returns.”

    Source: Hindustan Times
    Dated:8th August 2015


    Land pooling policy stuck because of confusion over classification

    While the Delhi Development Authority notified the Land Pooling Policy a month ago after years of waiting, the project cannot proceed further unless Delhi government classifies the identified agricultural lands as ‘urbanisable’.

    The DDA had notified the policy in May, and was looking to start registration of lands in 89 villages for pooling by August. The matter then went to the Delhi government for consideration, and the DDA hasn’t heard from them since.

    “We are waiting to hear from the Delhi government. Unless that happens, we will not be able to move any further. The land use has to change for us to start building residential and commercial complexes there. As of now, that land is agricultural land,” said a DDA official.

    However, sources said the Delhi government was still considering whether to change the land use, lest they be perceived as being anti-farmer.

    “The plan is to carry out various mohalla sabhas and find out if the residents of these areas want the policy. Once that happens, a final decision will be taken,” said an official.

    “Since the land pooling policy has been notified, land acquisition cannot happen, unless it is compulsory (for public infrastructure projects). So any residential or commercial development in the area will be completely stalled till a decision is taken,” the DDA official added.

    DDA has recognised close to 20,000 hectares of land that developed in North, North West, West and some parts of South West Delhi, spanning 89 villages. According to DDA, even if half this area is developed under land pooling, it would be sufficient to meet Delhi’s housing need of 250,000 homes.

    ht-30-7
    Under the land pooling policy, land parcels owned by individuals or group of owners can be handed over to DDA which will take a fraction of it and develop the common areas. The remaining will be handed over to the developers.

    The policy is applicable in the proposed urbanisable areas of the urban extensions for which zonal plans have been approved. Even an individual who owns two hectares of land can become a developer, under the project.

    According to the DDA’s land pooling model, there are two categories of land pooling — (i) if the developer owns 20 or more than 20 hectares of land, the DDA will return 60% of the land (ii) if the developer’s land parcel is less than 20 hectare, the DDA will return 48% of land.

    Source: Hindustan Times
    Dated: 30th July 2015


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