The Union Cabinet approved the “National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019”, on Wednesday to provide a legal framework to grant ownership rights to people living in unauthorised colonies in Delhi.
The proposal is applicable to 1,797 identified unauthorised colonies spread over 175 square-km of the national Capital inhabited by people from lower income groups.
The decision to grant ownership rights was taken by the Cabinet recently, and on Wednesday it cleared the Bill which is to be introduced 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 the SLP (C) 13917 of 2009 Suraj Lamp & Industries (P) Ltd. vs State of Haryana & others vide its judgment 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 Bill to recognise 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. The Bill also proposes 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 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.