DDA to tweak rules; CGHS housing plots to be auctioned to private developers

The Delhi Development Authority (DDA) will amend the rules that will enable the agency to auction land to private developers for residential projects, in a proposal aimed at meeting the growing demand for housing in the capital city.

The proposal, was approved last year, permits the amendment in the DDA (Disposal of Developed Nazul Land) Rules, 1981.

In a meeting chaired by Delhi’s lieutenant-governor (L-G) Anil Baijal in August 2019, the DDA had approved the proposal to auction residential plots meant for allotment to Cooperative Group Housing Societies (CGHS) to private developers. It was a first-of-its-kind effort by the DDA, which is the main developer in Delhi, to allow private players to develop housing in the national capital.

Also read: DDA in for a major overhaul, to downsize sanctioned workforce by half

In January and May, the land-owning agency had advertised for auctioning of seven and nine group housing plots, respectively. The plots were withdrawn from the auction list following an order issued on July 28. These plots were located in areas such as Rohini, Dwarka and Narela, and measured up to three acres or over 5,000 square (sq) metres (m).
According to a DDA official, who didn’t wish to be named, “These plots couldn’t be auctioned, as this needs a change in the DDA (Disposal of Developed Nazul Land) Rules, 1981 and Master Plan of Delhi (MPD)-2021.”

Nazul land refers to the land acquired by the government that is placed at the disposal of the DDA for development as “approved under various development schemes”.

The land-owning agency has to approve a proposal of changing the mode of disposal of Nazul land from allotment to auction by an amendment in the DDA (Disposal of Developed Nazul Land) Rules, 1981.

Anurag Jain, vice-chairman, DDA, said that the process to amend the rules is in progress and these plots would be auctioned in November.
“There is a need to amend the Nazul rules. We had sent the proposal to the Union Ministry of Housing and Urban Affairs (MoHUA), which had pointed out some changes. We have made these changes and prepared a proposal that will be tabled in the next meeting of the DDA. Once approved, it will be sent to the ministry for notification. We expect to include these plots in the auction slated for November,” Jain said.

The idea behind the decision was to gradually allow private developers or CGHS to develop housing projects in Delhi.

Private developers, who are allotted land after auctions, will be required to construct housing facilities in keeping with the MPD, 2021, which earmarks 15% of the developed area for people who belong to the economically weaker sections (EWS) of the society.
The land-owning agency has not been able to meet the housing needs of the city, despite undertaking large-scale housing projects at Narela, Dwarka and Rohini.

Though DDA has been allotting plots to individuals for the construction of houses, it hasn’t given any to CGHS after a fraud was uncovered in the early 2000s.

According to a DDA official, who spoke on condition of anonymity, only one CGHS plot has been allotted on the basis of court orders since 2005.

DDA has allotted 884 plots to CGHS to date.

“This land can’t be auctioned until the ministry notified the changes in the rules. But this is a good move, as it will ensure better construction quality and at competitive pricing,” said Sabyasachi Das, former planning commission, DDA.