Cabinet approves the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019

40 Lakh persons of 1731 Unauthorised Colonies to be benefited

The Union Cabinet chaired by Prime Minister Shri Narendra Modi today approved the proposal to introduce the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019 during the ongoing Winter Session of Parliament. This Bill will help in allowing the registration of properties and provide certain relief to the residents in Unauthorised Colonies (DCs) of Delhi from Registration Charges and Stamp Duty.

Nearly 40 lakh people reside in Unauthorised Colonies located on private or public land in Delhi. Properties, whether in the form of plot of land or built up space are generally held through General Power of Attorney (GPA), Will, Agreement to Sale, Payment and Possession documents. The properties in these colonies are not being registered by registration Authorities and thereby the residents do not have any title documents in respect of such properties and the Banks and financial institutions do not extend any credit facilities in respect of said properties.

The Supreme Court in in the SLP (C) 13917 of 2009 Suraj Lamp & Industries (P) Ltd. Vs. State of Haryana & others vide its judgement dated 11 October, 2011 had held that Sale Agreement/General Power of Attorney or Will transactions are 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.

Keeping in view the socio-economic conditions of the residents of these unauthorised colonies and ground realities, it is necessitated to recognise 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 re­development to improve existing infrastructure, civic and social amenities which will lead to better quality of life.

The  proposed  National Capital Territory  of Delhi (Recognition  of Property Rights of Residents in Unauthorised Colonies) Bill, 2019, envisages;

to recognize GPA, Will, Agreement to Sell, Purchase and Possession documents, in the light of Suraj Lamp Case Judgment, as a special one-time relaxation for this purpose for the residents of UCs in Delhi;
to provide for registration charge and stamp duty to be levied on the value mentioned in Conveyance Deed or Authorisation Slip and for its applicability on last transaction only,
The above relief provisions will benefit more than 40 lakh people living in 1,731 Unauthorised Colonies of Delhi as mentioned in the National Capital territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019 notified on 29.10.2019.

Background

A proposal was submitted by the Ministry of Housing and Urban Affairs (MoHUA) to the Union Cabinet on the basis of report of the Committee headed by the Lieutenant Governor of Delhi to confer or recognise the rights of ownership or transfer or mortgage of property in UCs of Delhi. The Cabinet approved the proposal in its meeting held on 23.10.2019 and accordingly, the Regulations to confer or recognise the rights of ownership or transfer or mortgage of property in UCs of Delhi have been notified on 29,10.2019.

The ownership of the properties in unauthorised colonies have been transferred several times through registered or un-registered or notarised Power of Attorney, Agreement to Sale, Will, Possession and Payment letters. Further, the stamp duty on these multiple transactions, have neither been assessed nor paid.

The stamp duty on the Conveyance Deed or Authorisation Slip, as the case may be, is leviable as per minimum rates (Circle Rates) specified in the notification of the Government of National Capital Territory of Delhi published vide number F.1 (953) Regn.Br./Div.Com/HQ/2014, dated the 22nd September, 2014 or the sale consideration mentioned in the Conveyance Deed or Authorisation Slip, as the case may be, whichever is higher.