Approved Delhi Land Pooling Policy Open the Door of Thousand of Opportunities

Two years after the Union Ministry of Urban Development gave its approval to Delhi’s Land Pooling Policy (LLP), the Chief Minister Arvind Kejriwal led government has notified the rules after getting a go-ahead from the Lieutenant Governor.

Under the new rules, 89 villages have been turned “urban” and will be developed accordingly by the Delhi Development Authority (DDA). The policy was stuck for two years because authorities needed to declare agricultural land “urbanisable” for it to kick off.

Section 507 of The Delhi Municipal Corporation Act, 1957, says: “The corporation, with the previous approval of the government, may, by notification in the official gazette, declare that any portion of the rural areas shall cease to be included therein and upon the issue of such notification that portion shall be included in and form a part of the urban areas.” Further, Section 12 of the Act says that once rural villages have become urban, they need to be converted into development areas. It is only after meeting these criteria that the DDA can invite landowners or aggregators to surrender their land parcels.

The decks have been cleared for that to happen now. The move gains prominence in light of the fact that the real estate market of the national capital has been long saturated. While the existing properties are far from the reach of a common man, a space crunch also restricts new developments. As a result of the two factors, there has hardly been any movement in Delhi property markets.

Delhi Land Pooling Policy plans to build 25 lakh housing units by 2021 under its Master Plan, and would require 10,000 hectares of land to meet the target. The policy, which will affect six satellite zones and more than 96 villages, will help the development body meet that target. According to the DDA, even if half of the identified 20,000 acres of land is developed, it would be enough to meet the national capital’s housing needs.

The magnitude of the Master Plan Delhi 2021 can be realized from the fact that more than 10,000 prospective buyers have put in their money and more than Rs 30,000 crore has already been spent by various real estate developers in anticipation of the LPP coming into force.

Under the scheme, farmers can directly transfer their land to the DDA, which would accept land parcels of more than two hectares and develop infrastructure such as roads, drainage, sewer lines, water supply, electricity, etc. After retaining a part of the land, the civic body would return a fixed percentage of land to the farmers concerned. This policy is a win-win situation for both parties.

While MPD 2021 aims to promote development of areas around mass-rapid transport systems, such as the Delhi Metro, the LPP aims at creating large areas for commercial/residential development after obtaining smaller land parcels from individual land owners or aggregators.