Is L Zone Welfair Or Unfair?

The Zonal Development Plan for Zone L (West Delhi-III) has been approved by the Central Government, vide letter No.K-12011/23/2009- DDIB dated the 8th March 2010 under Section 9(2) of Delhi Development Act, 1957.

Legal experts, realtors, urban development experts and revenue officials are of the view that when a policy is under review, setting up a welfare society and collecting money for it is illegal.“Earlier, people used to come together to form a co-operative group housing society (CGHS) and apply to DDA for land at concessional prices to build apartments for its members. However, since 1990, registration of CGHS is on hold in Delhi and people have started forming welfare societies under the Society Registration Act for the same purpose.

All about the policy
Agriculture land of villages adjoining Najafgarh, Dwarka, Karnal highway, Burari etc are to be developed for residential purpose under the land pooling scheme. Landowners in these areas will transfer their land to DDA, which will retain 52% land for developing civic facilities such as roads etc and return the remaining 48% to the landowners in case they own land from two hectares to 20 hectares. For those with 20 hectares and above, DDA with retain 40% land and return 60% to the landowners. To compensate landowners for loss of land, DDA will award them higher floor area ratio (FAR), which will allow them to construct more apartments in projects on their land and sell the same for a profit. Land at present in the aforementioned areas is owned by farmers and developers. Of late, welfare societies have started buying the properties from farmers in anticipation of the policy being implemented.The challenge is that till now DDA has only prepared the draft regulation of the policy and it is yet to be notified. Real estate experts say it is too early to say which sector of a particular zone will come under the policy as DDA will not consider areas not conforming to the terms and conditions of the policy.

Legal experts, realtors, urban development experts and revenue officials are of the view that when a policy is under review, setting up a welfare society and collecting money for it is illegal.“Earlier, people used to come together to form a co-operative group housing society (CGHS) and apply to DDA for land at concessional prices to build apartments for its members. However, since 1990, registration of CGHS is on hold in Delhi and people have started forming welfare societies under the Society Registration Act for the same purpose. This is illegal in my view because such welfare societies are basically NGOs which, instead of doing working for the welfare of the society, are indulging in economic activities,” says a real estate developer in Dwarka.

 

“These welfare societies can easily run away with the homebuyers’ money. They are promising the moon but in reality investors may end up getting nothing.

Haryana experimented with a new model of land assembly under the Haryana Development and Regulation of Urban Areas (HDRUA) 1975 permitting, under grant of license from the DTP, private developers to assemble lands from the market through negotiations and develop these to build residential colonies.

Some welfare societies have now converted to multi-state cooperative societies to legalise their activities.

 

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