DDA likely to approve land pooling policy today

    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

     


    Land pooling policy is a great chance for DDA to undo past errors

    The proposed modifications to the Delhi Development Authority’s (DDA) land pooling policy have been widely seen as a game-changer in affordable housing. But to contextually analyse the land pooling policy and the modifications proposed under chapter 19 of Master Plan of Delhi 2021 (MPD 2021), let’s look back to what happened over the preceding few years.

    MPD 2021 was notified in February 2007 (a good 11 years back) with a view to frame guidelines and norms for the development of Delhi till 2020. The entire land mass of Delhi was included for urbanisation, thereby, making it the first 100% urbanised state.

    The land pooling policy was notified by the central government in 2013, with a view to include the private sector in the process of urban development, both in strategic planning, aggregation of scattered small land holdings as well as execution and development.

    Make no mistake — it indeed is a paradigm shift from the process of urbanisation of Delhi covered under the earlier master plans, wherein the DDA used to acquire large land masses, and develop it progressively, sometimes taking decades. (examples: Rohini, Dwarka). DDA was the sole landowner, planner, developer, seller, auctioneer, and partook in every conceivable role. Under the current policy, DDA would cease to be a land aggregator cum developer, and merely remain a ‘facilitator’ and regulator.

    Consolidation of land has been the biggest challenge that the development agencies have long faced while trying to urbanise India. It is a dynamic process, and landowners have forever been influenced by each other, not by the government agency acquiring the land. Any entity that approaches a landowner with a promise of development on the land, with or without a share of the benefit, is looked at with suspicion.

    The urban design form is dictated by the seamless availability of land; the best examples of which are seen in the cities in Delhi NCR. Below is a snapshot:

    Delhi: Piecemeal expansion has led to almost half the population living in unauthorised settlements, with more than 125 sq km of land mass under unauthorised development/ occupation.

    Gurgaon: The government declared the sector boundaries in the master plan in 2006, but the infrastructure is yet to be laid owing to land acquisition issues, though dwelling units are ready for occupation. Even the connecting roads between sectors haven’t been developed.

    Noida: Access to land ensured that gridline infrastructure could be planned, and created. Development of townships/residential and commercial towers was created subsequently.

    It is imperative that the urban form and methodology of a time-bound development of infrastructure is defined, more so in the case of Delhi wherein multiple agencies would be providing services like trunk roads, arterial roads, water, power lines, sewage water treatment plants etc.

    What would be the proposed location and alignment of the trunk lines of these services within the sectors? In the absence of clarity, how can an organised Developer Entity (DE) invest time, effort and money to decide which sector would be optimally efficient?

    That the sector plans haven’t been released yet to facilitate decision-making is a different matter altogether. When would this happen?

    The launch of the land pooling policy is a brilliant opportunity for DDA to undo the shortcomings of the past, and facilitate the development of Delhi as a modern capital of the third-largest economy of the world.

    Is there any precedent in India, where a few disparate private DEs have accepted and executed such a vast responsibility — of aggregating land from the owners, investing capital for approvals, service infrastructure and development without any counter guarantees from the government on ROI?

    “A known devil is better than an unknown angel,” says an old saying. By our interactions with the land owning community, they would have had no problem in surrendering their land to a government agency like DDA. However, when the land has to be surrendered or rights shared or co-developed etc with a yet to be DE, most landowners are circumspect. Is there a trusted, capable agency that would mediate, negotiate and handhold both sides on a daily basis?

    Delhi is already suffering on account of multiple agencies laying and providing services. Landowners rightfully fear that with DDA not liable to provide (any policy document) the services in a time-bound manner, infrastructure would be a casualty, thereby delaying the development and opportunity to monetise their land assets.

    MPD 2021 might be the largest investment opportunity in India for institutional investors to partner landowners to develop a ‘modern megapolis’, and the last for at least a decade in NCR, It is generally understood that unless the services trunk lines are laid by the government, before the re-allotment against surrendered land, the interest levels would be low. Hence, the need for an approach on the lines of Public-Private-Policy-Partnership.

    What is the stated process of ‘acquisition of land for sector roads?’ In the policy document, DDA has specified that the contiguous land abutting sector roads would be chosen for licensing. When would the layout plan of sector roads be released to the public? Would they remain ‘hard coded’ or can it be subjected to change of alignment?

    Our internal research with leading investors reveals that the following factors influence their decision.

    Stability in criterion – Policy making & implementation
    Risk (Uncertainty about outcome)
    Forecasting Risk owing to resistance to policy
    History of market trend
    Investment horizon
    Expected return
    External factors
    Inflation & taxes
    Socio economic political conditions
    Information in public domain & education of landowners
    Sales velocity
    Floor Area Ratio (FAR) has to match the surrounding markets, if not exceed compared to the other markets in NCR.
    The Prime Minister’s vision for the nation talks about affordable homes for all segments of the society, while the FAR numbers are unviable for development of finished products at the price points wherein lie the real demand.

    Said the above, MPD 2021 could become a template for the urban design and development for the future, subject to DDA, the Ministry of Urban Development and other stakeholders contributing towards a ‘partnership driven model of land development’ wherein the dividends are shared in pre-agreed manner.

    And, mind you, the returns can be phenomenal for all.

    Ramesh Menon is the founding Director of Certes Realty Ltd, and an independent Director on the board of SPA Capital Group. He brings perspective on both land, investments and monetisation of real estate assets.

    Source: CNBC TV18
    Dated: 5th July 2018


    Land pooling policy: Public suggestions to be heard by board on July 2-3, says DDA

    Experts welcome the move as a step in the right direction, but say clarity required on how the urban body intends to integrate functions of other government departments

    Public suggestions and objections on DDA’s land pooling policy, which is expected to meet the residential needs of about 95 lakh people besides stimulating economic growth, will be put before the authority’s Board of Enquiry and Hearing on July 2-3, an official statement has said.

    Urban planners and experts have welcomed the move but said clarity required on how the urban body intends to integrate functions of other government agencies.

    “It’s a step in the positive direction to involve the suggestions of the stakeholders pre notification. However, it’s not clear yet on how DDA intends to integrate the functions of other government departments such as revenue, MCD etc to facilitate land pooling. An exercise of this scale cannot be executed without a robust technology support, which is yet to be commissioned by DDA. Urbanization through land pooling is the future and large scale institutional investment, both domestic and international needs be solicited. Hence, it’s important that their point of view also be considered along with the landowners,” says Ramesh Menon, Certes Realty.

    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 land owners.

    “For implementation of 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 have been received,” the DDA said in a statement.

    Individual hearing of the persons who have filed their objections, suggestions and observations or views will now be held on July 2-3 before the DDA’s Board of Enquiry and Hearing at the DDA headquarters in Vikas Sadan, it said.

    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.

    Source: MoneyControl.com
    Dated: 22nd June 2018


    Land Pooling in Delhi further simplified; DDA now to act as only facilitator

    • Transfer of pooled land to DDA not required; Single Window approvals for speedy execution
    • DDA asked to prepare regulations in a month; Also to start spatial and service planning
    • HUA Minister Shri Hardeep Singh Puri and LG of Delhi discuss Policy in detail
    • Expected land pooling of 22,000 hectares to boost economic activity

    Land pooling in Delhi, expected to meet the rising demand for residential and other needs besides stimulating economic growth is now further simplified for speedy execution. Delhi Development Authority (DDA) will now act more as a facilitator and planner as against the role initially envisaged for it as a part of simplification of execution of land pooling policy.

    Minister of Housing & Urban Affairs Shri Hardeep Singh Puri and Lt. Governor of Delhi Shri Anil Baijal met in Nirman Bhawan and discussed various aspects of the Land Pooling Policy and decided to make some changes in the policy decided earlier. Shri Duga Shanker Mishra, Secretary (HUA) and Vice-Chairman of DDA also participated in the discussion.

    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. The Minister and LG today decided to do away with this requirement and land title continues to be with the original land owners.

    DDA was asked to immediately initiate spatial and services planning for the five zones covered under Land Pooling Policy so that the policy could be given immediate effect after finalization of regulations under the Policy.

    While both the Minister and LG expressed concern over delay in implementing Land Pooling Policy, Shri Puri thanked Shri Baijal for his initiative in having 89 villages declared as urban areas under the Delhi Municipal Act, 1957 and 95 villages as Development Areas, as required for the implementation of land pooling. DDA was directed to formulate necessary regulations under the Policy in accordance with the changes in a month time. 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 incentivize dense development for effective utilization 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% 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.

    Under the Land Pooling Policy, 60% of pooled land would be returned to land owners after infrastructure development, if the pooled land is 20 hectares and above and 48% if the land pooled is between 2 and 20 hectares. Of the 60% of returned land, 53% will be for residential purpose, 5% for city level commercial use and 2% for Public and Semi-public use. In the other case, the same would be 43%, 3% and 2% respectively.

    Affordable houses for Economically Weaker Sections to be built under the Policy shall be of the size of 32-40 sq.mtres. 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.

    Source: PIB
    Dated: 12th October 2017


    Govt gets land in 95 villages in big push for pooling policy

    Tags :

    Category : MPD-2021 News

    NEW DELHI: AWAITING NOTIFICATION FROM THE STATE GOVT, THE LAND POOLING POLICY WAS IN A LIMBO AFTER BEING CLEARED IN SEPTEMBER 2013

     The much-awaited land pooling policy — touted as the future of organised housing sector in the city — will soon see the light of the day.

    Lieutenant governor Najeeb Jung has allowed transfer of ownership of the gram sabha land in 95 villages, identified for implementing land pooling policy across the city, to the Delhi government’s revenue department.

    An order was issued by Som Naidu, director-cum-joint secretary (Panchayat), on October 29. A day later, the revenue department also issued a circular about the changed ownership to all officers concerned, including the six district magistrates under whose jurisdiction the 95 revenue villages are located.

    The Delhi government had demanded the L-G office for enblock allotment of gram sabha land before it can notify the 95 villages, identified for land pooling, as ‘urbanized’ – thus declaring these villages as development areas in order to allow development of commercial, residential and community infrastructure.

    The Delhi Development Authority’s (DDA) plan to execute the land pooling policy has been in a limbo ever since the policy was cleared by the Centre in September 2013, awaiting notification from the state government. “The decision has removed the biggest bottleneck in the process. We can expect a decision on it soon,” a senior revenue department official said.

    The DDA, which comes under the central government’s urban development ministry, is the sole land-owning agency in the capital and the L-G has the final authority on its policy matters. Sources said the state feared that it may lose its right over gram sabha land after declaring the villages as urbanised.

    The ruling dispensation was of the view that it would become tough for the state to undertake future projects if it lets go of the ownership of the gram sabha land and it would become even more dependent on DDA for land, sources said. The AAP government is already locked in a war of words with DDA over allotment of land at ‘market rate’.

    Officials said with the gram sabha land being vested with the revenue department, other agencies of the government could now seek allotment of gram sabha land from the revenue department.

    Source: Hindustan Times
    Dated: 5th November 2015

    HT- Delhi govt 95 vill land

     

     

     

     

     

     

     

     

     

     

     


    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


    A blueprint for land pooling

    What is land pooling policy?
    Under the  land pooling policy, the land parcels owned by individuals or a group of owners are legally consolidated, via transfer of ownership rights to the designated land pooling agency which later transfers the ownership back to the land owners. These land owners are then entrusted with the development of such areas.

    Why has DDA introduced the land pooling policy in Delhi in the proposed ‘urbanisable’ areas?
    According to DDA, land acquisition and planned development has not kept pace with the increasing demand of urbanisation during the last five decades. Moreover, the process of acquisition is being increasingly challenged by land owners due to low compensation as compared to the market value. So in the land pooling policy either the developers buy land from farmers at the market rate and hand it over to DDA or the farmers can themselves become developers by tying up with construction companies. This will avert land acquisition complications.

    How much land will a developer get back from DDA?
    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 hectare of land, DDA will return 60% of land to him and retain 40%.
    (II) If the developer’s land parcel measures less than 20 hectare, DDA will return 48% of land and retain 52%

    Zones which will be a part of the policy
    According to the land pooling policy, notified on September, 2013, the immediate urban extension is to be in the zones of J, L, M, N and P (I&II).

    How long will it take for the scheme to get operational?
    On November 18, 2014, DDA sent the final regulation of the scheme to the Ministry of Urban Development, which has to give its approval for notification. Once the regulations get notified, DDA will invite developers to apply for deposit of land.

    What’s the minimum size of the land parcel that a developer must have to participate in the land pooling scheme?
    The minimum size of the land parcel that the developer will have to hand over to DDA is five acres.
    He can even own various plots of different sizes in the land pooling zones and the consolidated size of the plots should not be less than five acres.

    How is land ‘returned’?
    According to DDA, whenever it acquires around 60% land from a particular sector of the land pooling zones, it will hold a draw and return land to the developers. It is not necessary that the developer get the same parcel that he handed over to DDA.


    DDA sets 3-year goal for Delhi’s first smart city

    Delhi’s first smart city will be a reality in three years from now. With the iconic 100-storey tower being the key attraction, the East Delhi Hub at Karkardooma, the Delhi Development Authority’s (DDA) flagship project, will also comprise residential units, green cover and recreational facilities.

    The construction will be undertaken by the National Building Construction Corporation (NBCC) at a cost of Rs 4,500 crore. “We have set a deadline of three years for this project. However, this is subject to change,” said Anoop Mittal, managing director, NBCC, while unveiling the model of the project on Wednesday. The hub will come up on transit-oriented development (ToD) norms.

    The NBCC will maintain the city for 30 years after its completion. “The project will be completed in phases and the first phase will be completed within 36 months,” the MoU said. The iconic tower will be more than 300 metre high. “The tower shall have restaurants, shopping facilities,offices, hotel and service apartments. At the top of the iconic tower, there will be several rooftop revolving discotheques and cafes, as well as a helipad for emergency and medical services,” DDA officials said.

    The smart city will have connectivity with two Metro stations, Anand Vihar and Karkardooma, a railway terminal and ISBT at Anand Vihar. The hub is expected to create approximately 8,000 jobs. “All green areas and parks shall have natural storm water management systems integrated within them. All rain water falling on the site will be recycled to replenish the ground water table,” said DDA’s vice-chairman Balvinder Kumar.

    LAND-POOLING POLICY

    The implementation of DDA’s land-pooling policy has been further delayed. The Union urban development ministry has asked the DDA to increase the floor area ratio (FAR) for construction to be undertaken by private developers under this policy. This, according to officials, will further delay the notification for the policy which is pending before the ministry. DDA vice-chairman Balvinder Kumar said the policy has been approved but following suggestions from the UD ministry, experts will be consulted to increase the FAR that would require fair amount of time.


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