A New Bill is Passed to Grant Ownership Rights to People Living In Unauthorised Colony.

The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019

Purpose of Introduction of this Bill

• Nearly 40 lakh people reside in Unauthorised Colonies located in Delhi.

• Properties held by such residents are generally held through General Power of Attorney (GPA), Will, Agreement to Sale, Payment and Possession documents.
• The properties in these colonies are not being registered by registration Authorities and thereby the residents do not have any title documents in respect of such properties and the Banks and financial institutions do not extend any credit facilities in respect to said properties.
• The Supreme Court in the case of Suraj Lamp & Industries (P) Ltd. Vs. State of Haryana & others held that Sale Agreement/General Power of Attorney or Will transactions are not ‘transfers’ or ‘sales’ and that such transactions cannot be treated as completed transfers or conveyances and they can continue to be treated as existing agreement of sale.
• Keeping in view the socio-economic conditions of the residents of these unauthorised colonies and ground realities, it was necessitated 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 re­development to improve existing infrastructure, civic and social amenities which will lead to a better quality of life.

Key Features of this Bill

• The Bill provides for recognising the property rights of residents of certain unauthorised colonies in the National Capital Territory of Delhi.
• The Bill provides that the central government may regularise transactions of immovable properties held by residents of certain unauthorised colonies, through notification.
• These transactions could be regularised based on documents including the latest power of attorney, agreement to sale, will, or possession letter. 
• Any resident of an unauthorised colony having these documents will be eligible to obtain the right of ownership through a conveyance deed or an authorisation slip. 
• The residents will be required to pay certain charges to obtain such ownership.These charges may be notified by the central government.
• Stamp duty and registration charges will also be payable on the amount mentioned in the conveyance deed or the authorisation slip.
• No stamp duty and registration charges will be payable on any previous sale transactions related to the property.
• The above relief provisions will benefit more than 40 lakh people living in 1,731 Unauthorised Colonies of Delhi as mentioned in the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Regulations, 2019 notified on 29.10.2019

[Download Original text of Bill:- Bill Text ]

[ Source: Prsindia.org ]

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