NEW DELHI. With the announcement of the approval of Land Pooling Policy by DDA (Delhi Development Authority) on September 7, a wave of joy & enthusiasm washed the people of Delhi. The approval paved way for a policy which will make owning a house in Delhi affordable for the general public. It can be assumed that many people may have made arrangements to procure a lump sum of money to hand over to brokers to confirm their flat. However, is all this euphoria justified or are we just jumping the gun? It must be noted here, that the approval, as part of Delhi’s master plan for 2021, still waits for a nod from the Union Ministry of Housing and Urban Affairs before actually getting implemented.
Let us first develop an understanding of the various land laws that have been implemented, amended, scrapped or brought into force in the past couple of years, which have an impact on the common man’s dream of purchasing a house. Enforcement of demonetization and Benami Transactions (Prohibition) Amendment Act, RERA (Real Estate Regulation & development Act), GST (real estate sector included) and a couple of investment trusts (REITs, InvITs) have exposed the multibillion Dollar property industry. Enforcement of the above-mentioned law is supposed to help develop a more transparent way of conducting property business. Prospective buyers must, therefore, be aware of these before investing their money in some dubious developer’s hands.
While the enthusiasm for land pooling is good, it must be understood that the optimism is slightly in advance. There are many unapproved projects (that are under construction in full swing) under the land pooling policy which offers lucrative deals to prospective clients. Investing money in such projects and being later duped by the developer will not result in any compensation from the DDA. Firm warnings about such unscrupulous developers have been issued to make unsuspecting Delhi residents aware.
However, there is absolutely no need to be disheartened, because DDA is extremely concentrated about the land pooling policy this time around. They would want the policy to uphold judicial scrutiny and become enforced so as to help the common man. With things going as expected, the land pooling policy will follow integrated sector-based planning. Each sector will have 250-300 hectares of land which will be developed by developer entity after 70% of adjoining area is amicably assembled.