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Lok Sabha Passes “NATIONAL CAPITAL TERRITORY OF DELHI (RECOGNITION OF PROPERTY RIGHTS OF RESID

NATIONAL CAPITAL TERRITORY OF DELHI (RECOGNITION OF PROPERTY RIGHTS OF RESIDENTS IN UNAUTHORISED COLONIES) BILL, 2019

Unauthorized colonies are no longer legally dejected areas. The Lok Sabha has passed the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019 on 30.11.2019 for providing a legal framework to people living in unauthorized colonies in the state’s capital.  Unauthorized colonies are colonies or development comprising of a contiguous area, where no permission has been obtained for approval of layout plan or building plans as defined in section 2 of the Bill. Section 3 of the Bill says that this applies in spite of anything contained in the Indian Stamp Act, 1899, the Registration Act, 1908 and the Income-tax Act, 1961.

Since there has been a phenomenal increase in the population of the National Capital Territory of Delhi in the last few decades owing to migration and other factors, this measure of recognizing the property rights of residents in unauthorised colonies are mandated. Residents Welfare Associations for regularisation in pursuance to notification number S.O. 683(E), dated the 24th March, 2008 of the Delhi Development Authority, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (ii), dated the 24th March, 2008 based on applications identified the number of unauthorised colonies.

Previously, the drawbacks were:

  1. The properties in these colonies were not being registered by registering authority and thereby the residents did not have any title documents in respect of such properties.

  2. Banks and financial institutions did not extend any credit facilities in respect of said properties.

  3. The ownership of the properties in unauthorised colonies had been transferred several times through registered or un-registered or notarised Power of Attorney, Agreement to Sale, Will, possession letter and other documents including documents evidencing payment of consideration and stamp duty on these multiple transactions have neither assessed nor been paid.

  4. The stamp duty on the conveyance deed or authorisation slip, as the case may be, was leviable as per minimum rates specified in the notification of the Government of National Capital Territory of or the sale consideration mentioned in the conveyance deed or authorisation slip, as the case may be, whichever was higher.

  5. Sale agreement/general Power of Attorney or Will transactions were not “transfers” or “sales” and that such transactions cannot be treated as completed transfers or conveyances and they can continue to be treated as existing agreement of sale was held in the case of Suraj Lamp & Industries (P) Ltd. Vs. State of Haryana & others vide its judgment dated the 11th October, 2011.

Now, to keep pace with the ever growing population and to meet their socio-economic requirements it was decided that it is desirable to recognize and confer rights of ownership or transfer or mortgage to the residents of such colonies on the basis of Power of Attorney, Agreement to Sale, Will, possession letter and other documents including documents evidencing payment of consideration and to facilitate development or re-development that may improve existing infrastructure, civic and social amenities which may lead to better quality of life. Thereby this proposal was brought forth. Section 3 clause 2 fixes charges on payment of transactions of immovable properties based on the latest updates in the documents concerned. Section 3 and in particular clause 7 provides for the objectives of the Bill which are the affirmative version of the abovementioned drawbacks.

In conclusion, it’s a Bill to provide special provisions for the National Capital Territory of Delhi for recognizing the property rights of resident in unauthorized colonies by securing the rights of ownership or transfer or mortgage in favour of the residents of such colonies who are possessing properties on the basis of Power of Attorney, Agreement to Sale, Will, possession letter or any other documents including documents evidencing payment of consideration and for the matters connected therewith or incidental thereto. Gone are the days of lands without backed by legality are not worth anything.

Jumanah Kader

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