The DDA has recently approved a fresh Penalty Relief Scheme that will be a welcome relief to people who are unable to convert their properties from lease hold to freehold on account of late payment.
There is good news for homeowners who bought flats on hirepurchase basis but could not pay in time and are unable to convert their properties from leasehold to freehold as the Delhi Development Authority (DDA) has recently approved a fresh Penalty Relief Scheme.
Under this scheme,the DDA will offer property titles from leasehold to freehold with certain charges.
For this the maximum period for levy of misuse charges will be restricted to five years from the date of detection of the misuse.The DDA has offered 25% rebate to applicants and the scheme,open for six months,will also help those who wish to clear all their outstanding dues at one go.
Why freehold property
Experts say DDAs decision to convert leasehold property into freehold property would give a big boost to Delhis property market and also bring the much-awaited relief to thousands of residents,especially in Karol Bagh,Daryaganj,and Paharganj areas.
The Mughal emperor Shah Jahan developed Shahjahanabadnow called Old Delhi for a population of 60,000 over 600 hectares at an overall density of 100 people per hectare more than 350 years ago.
Today,Shahjahanabad forms a small district in Delhi,while the national capital has grown manyfold with 20 times that population.Old Delhi or the Walled City,though small in size,deals in wholesale bulky commercial activities and polluting industries with all types of mixed land use.
Delhi has a total area of 1,483 sq km with nearly two-thirds of the area already urbanized and the balance under development and construction based on various land-use polices like Urban Land Policy,Land Use Policy,Farm House Policy,PPP model,Transfer of Development Right (TDR),etc.
The old built-up areas prior to the partition of the country are Walled City of Delhi,Karol Bagh Area,Civil Lines Area,Lutyens Delhi,apart from 369 urban-rural villages and some other colonies.
In Delhi,of the total of 82,948.84 acres of acquired land,75,609.84 acres has been used for residential,commercial,institutional,industrial,infrastructure (roads),and green area purposes,up to 2008.
Balvinder Kumar,vicechairman of DDA,
says: According to the urban land policy being followed by the DDA,land ownership is only of two typesfreehold or leasehold;but the land use is of many types like residential,commercial,industrial,institutional,e t c.Initially,the acquired land was on lease and getting proper ground rent from users but,slowly,we are converting these into freehold properties due to thousands of c a s e s pending in gove r n – m e n t departments,which is holding up the realization of taxes.Thus the DDA decided that most of the land should be freehold.
Ram Gopal Gupta,city policy planner with DDA,says: There is no difference in the value of land,whether freehold or leasehold;the value is ascertained according to land use,which would be followed as per the master plans.
Kamal Taneja,MD of TDI Infrastructure Limited,says: DDAs decision to provide relief to thousands of residents of Karol Bagh,Daryaganj,and Paharganj is very welcome and timely,as in many cases misuse charges have exceeded the cost of the property.This relief scheme will help people looking for the conversion of their properties into freehold.
Rajesh Goyal,MD of RG Group,says: Freehold properties make the ownership titles absolute,which will make the procurement of loans by way of mortgage easier.Making property freehold will bring in substantial money into Delhis realty market,as the credentials of the property become unquestionable.This will have a positive impact on the subdued sentiments of property buyers and other property transactions in the whole of the Delhi NCR.
Rakesh Yadav,MD of Antriksh Group,says: This policy is a very good source of revenue for the DDA and it can also update clean revenue records.Some civic authorities responsible for developing urban areas in Uttar Pradesh started allotting land to developers on a freehold basis long ago.
Demand of freehold property in the NCR
Like the DDA,the Huda (Haryana Urban Development Authority) in Gurgaon and Faridabad,and the GDA (Ghaziabad Development Authority ) are planning to implement freehold land ownership policy.
Once the new land ownership policy is implemented,buyers,developers,and even development authorities will be benefited,in terms of revenue generation.This would also cut procedural delays giving respite to developers and speeding up the execution of projects.
In Noida-Greater Noida,homebuyers and even builders are not the actual owners of the property for which they have invested huge sums of money. According the existing lease policy,flats and plots are subleased by the authorities concerned to buyers.