lieutenant Governor Najeeb Jung has issued a notification allowing waiver of stamp duty to Delhi Development Authority (DDA) on transfer of land from farmers under land pooling policy (lPP). This will impact the revenue collection of Delhi Government to the tune of Rs25,000 crore to Rs30,000 crore.
The authority, which is supposed to acquire huge land for providing housing facility to poor and developing smart city, will not charge any stamp duty on transaction of land from farmers to big developers under land pool policy.
The lieutenant Governor has waived stamp duty to DDA despite strong objections by Delhi Government’s Finance Department that the Government can grant exemption in stamp duty when the land in question is acquired by the Government for public purpose.
The land pooling policy was notified by the DDA last year. It is also noted that DDA, which is considered the richest body/authority in the country is expected that over Rs30,000
to Rs40,000 crore is deposited in its bank account.
This decision will severely impact the financial health of the Delhi Government to a tune of Rs25,000 to Rs30,000 crore. “The issue was pending for the past eight months due to a
tussle between DDA and Delhi Government,” sources said.
The land pooling policy has been notified by the Ministry of Urban Development and is a part of the Master Plan of Delhi (MPD) 2021, will pave way for easier acquisition of land for housing projects.
A parliamentary panel had directed DDA to finalise its land pooling policy and involve the private sector and cooperative group housing societies in meeting the housing needs
in Delhi.
The Standing Committee on urban development had said that the agency should set a year-wise target for the construction of affordable houses. The panel said it has estimated an additional housing stock requirement of about 24 lakh dwelling units.
To encourage private developers, DDA has already earmarked about 200 villages, mostly in Outer Delhi, for land pooling. This includes conversion of 95 villages into ‘development areas’ and 89 into ‘urban villages’. All the
villages combined, along with some more that are expected to be clubbed in, are expected to release 29,000 hectares or
just over 70,000 acres of real estate in the Capital.
The move is expected to please all, including the developers, who will offer their land to DDA to be pooled. DDA that will develop the land in a planned manner and earn some revenue for itself, those developers who wouldn’t have to fear retrospective litigations by the original land owners and investors in these projects.