Lok Sabha Passes Bill To Grant Ownership Rights To People Living In Unauthorised Colonies In Delhi [Read Bill]

The Bill introduced by Union Housing and Urban Affairs Minister Hardeep Singh Puri seeks to provide a framework to recognize the property rights of persons living in unauthorized colonies in Delhi; by granting rights of ownership or transfer or mortgage on the basis of Power of Attorney, Agreement to Sale, Will, possession letter or any other document evidencing payment of consideration.

The benefits under the Bill will extend to 1731 unauthorized colonies, as identified by Delhi Development Authority, spread over 175 square-km, mostly occupied by poor migrants from different states.

While introducing the Bill, Puri said that the government was in the process of uploading digital maps of all colonies on its official portal by December 31. Supporting the Bill, BJP MP for North-East Delhi Manoj Tiwari said that the Bill was set to benefit as many as 70 lakh people.

Supporting the Bill, INC MP Adhir Ranjan Chowdhury asked the government to clarify how it planned to implement the Bill, while preserving the mandate of the Delhi Master Plan, 2021. He also asked the government to reduce the charges set for effecting authorization of residents' rights.

During the discussion, DMK MP Dayanidhi Maran questioned the government why had it sealed its lips on the legal status of Sainik Farms; a posh area in Delhi that has been in controversy for allegedly being an unauthorized colony. "What is preventing you to regulate the Sainik Farms," he bluntly asked.

Asking the government to reconsider the Bill, RSP MP NK Premchandran said that the Bill had been "ghastly drafted". He said that the Bill clearly violated the Supreme Court's dictum in Suraj Lamp & Industries (P) Ltd. v. State Of Haryana & Anr, (2012) 1 SCC 656, which unequivocally held that power of attorney transactions are not `transfers' or `sales' and thus cannot be treated as completed transfers or conveyances.

In reply to this issue, Puri cited the Statement of Objects and Reasons annexed to the Bill which reads as under,

"In view of the socio-economic conditions of the residents of the unauthorised colonies and ground realities, it is desirable 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 re-development that may improve existing infrastructure, civic and social amenities which may lead to better quality of life."

Salient Features

Recognition of property rights: The Bill provides that the Central Government may recognize the property rights of persons living in unauthorized colonies in Delhi; by granting rights of ownership or transfer or mortgage on the basis of Power of Attorney, Agreement to Sale, Will, possession letter or any other document evidencing payment of consideration.

The corresponding provision operates notwithstanding anything contained in the Indian Stamp Act, 1899, the Registration Act, 1908, the Income-tax Act, 1961 and the judgment of the Supreme Court in the Suraj Lamp case.

Resident: The Bill defines a resident as a person with physical possession of property on the basis of a registered sale deed or other documents as mentioned above. It also recognizes the rights of legal heirs of residents but does not include any tenant, licensee, etc.

Unauthorized colony: The Bill will be applicable to only those unauthorized colonies that have been notified for regularization by DDA.

Payment of charges: The residents will be required to pay (nominal) charges notified by the central government, along with Stamp duty and registration charges on the last transaction, to obtain ownership.

The Bill will now be tabled before the Rajya Sabha for consideration and passing.

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