Delhi Land Pooling Policy -wrong rules & wrong implementation
Delhi Land Pooling Policy -wrong rules & wrong implementation
Why this petition matters
For the kind attention of:
The Chairman of DDA
URBAN DEVELOPMENT MINISTER
We wish to draw your attention via this collective petition to the suffering of huge number of farmers ,Landowners and general public who are stuck for 10 over years due to ineffective LPP policy and its implementation due to which not only landowners are suffering, huge loss to Govt and public is stated as below
By a proper policy framework , The residents of Delhi can get good quality of floors (3BHK with all high class facilities) for under 1 Crore.
Why the agencies and government are not implementing a right land and development policy for Delhi.
Why Deen Dayal Jan Awas Yojna cannot be implemented in Delhi?
when the same scheme can be implemented successfully in various other cities like sonepat and many other cities of Haryana. It gives affordable homes to public. By this policy developed and approved plots can be given for less than 30000-40000 per yard which are now 2-4 lakh per yards as of now.
Land in Delhi is about 3 Crore /acre and add about 2 Crore/acre as development charges(EDC) /acre (Rs 12500/-)
Effective yield of about 50% after having roads and facitlites so cost shall be in range of 25000 rupees which can easily be sold for 30-40000 per yard.
Why the public of Delhi is DEPRIVED of such possibilities for so long.
Just because Delhi Govt may put it on DDA and DDA will put it on Delhi Govt or make a policy which is impossible to execute. A musical chair will played until when?
Assuming a vacant land of approx 100,000 acre in Delhi as per DDA master plan(actual available land is much more)
1.Govt will get free land 40,000 acre worth 120,000 crore. (at a 40:60 ratio).
2.It will be about Rs 600,000 CRORE worth of development.
3.It will also earn about 120,000 Crore worth of EDC charges (at 2 Cr/Acre). Stamp duties(7%) will be about 42,000 Crore.
4.Beside this it will create 15 lakh EWS houses (60000*50000*15/300*100) at a proposed rate of 2000 per sq foot at almost no cost to govt.
5. GST 18% /income tax(about 25%) from developers will be a substantial amount.
6. Assuming a land value of 3 Cr/Acre About 300,000 Crore worth of land and assets are stuck for more than a decade.
Why is such a policy of massive impact a failure for so long?
We wish to draw your attention to many loopholes in said policy which is making it unable to work or implement in reality. The policy makers have not visualised the challenges of the whole process and set up a framework which is almost impossible to execute.
Major Problems in LPP POLICY:
1. The conditions of getting 70% of contagious land together is totally unreasonable to start the planning process of a sector.
2.Even if it does, The other most difficult condition is to form a consortium for the same as one entity.
Whole of Haryana especially Gurugram got developed by having a policy of 5/10 Acre group housing and 25 acre of plotted colony development policy.
Each developer buys the land and gets CLU after paying fees , then develops it and sells . What is the problem with such a model which has proven success so far?
Do we really want to develop Delhi in real or just in powerpoint presentations/ media briefings.
The challenge of the Delhi LPP model is that entry barriers are made too difficult for developers namely few as follows.
i) It shall be noted that there are huge scattered ownerships of land in Delhi and very small portions are owned jointly by families for many generations and there are disputes/differences in the same families.
ii) Practically even in family people don't agree on their opinions especially when land/money is involved.
iii) How do DDA expect to form a consortium of people with 250-500 acre land involving at least 500 people of has different background (farmers, builder, investor, developer, some educated while many uneducated, some with money some without, some with experience and some without & general public too) .
iv)Can anyone visualise how such a consortium can be formed?
v)Why must one developer obey others? and if some don't how will the consortium perform?
vi) Democracy can run government but not commercial setups.
vii)if there is a way- let DDA show a model case which they will say they are doing but with no result as such.
viii)Just think Why will so many of them work under someone as lead developer?
ix) Why the lead member will take responsibility for other landowners without any interest, which others will not agree by large. What if they dont pay EDC on time? What if they don't pay development investment in time.Whole project witll get stuck.
x)Some developers wish to make a smaller flat for medium class, some big for richer classes. Why do they need to get one development entity(white elephants like DDA who could not develop despite so cheap cost of land and all government rights).
xi)Worst is Majority of developers of the past 1/2 decades are struggling for survival and do not have clean histories or good track records.
3.Very POOR effective FAR making development totally unviable.
i)Practically DDA LPP is allowing very poor FAR. on paper it is showing high but effective is least in the whole region. it is only one doing double deduction of land to calculate effective FAR.
Gururam has 2.25-3.5 FAR
Gaziabad has 1.75 expandable to 2.25
Noida has also similar FAR
But in LPP is less than 1% effective on all land a farmer owns.
*in Fact now it is even lower than LDRA policy of DDA itself.
*It is also lower than current FAR given in main Delhi.
Why such differentiation for new development?
ii) No Clarity on FAR Given: There is not a single document showing with example how much FAR a farmer or developer will get.
All are left to guess work and speculations.The figures shown in different documents contradict each other. Why is it made so complex?
iii) WRONG CALCULATION of FAR (by DOUBLE DEDUCTION of land)
Delhi LPP is the only state doing double deduction of FAR for reasons best known to them. First deduct 40% land then deduct 55% again to calculate the so-called 58% FAR.
For Example say one own 10 acre land
He has to give 40% land to GOVT. so left with 6 acre.
Now as per b and c clause of 19.4.vi of policy on page 5 there is factoring of 55% for reason best known to them (termed Nett residential area and gross residential area) so 6 will become 6*55= 3.3 only.
Now on this 2.5 will be calculated which is 8.25 only
So a landowner with 10 acre land will get 8.25 acre FAR which will be less than 1 FAR(to be precise .825) only while claims are said to be of 250 or so.
Such concepts are nowhere prevalent in India be it Haryana or UP or other states. These 2 small words(gross and net residential area to calculate FAR) have been smartly put with malafide intentions by policy makers.
It is similar to the cat(landowner) & monkey(DDA) storey which we used to hear in childhood. Cat cuts from here & there 1 by 1 .Eventually cats ( landowners) left with nothing.
iv)in most countries where the government takes land they compensate the FAR or give more rather so as to compensate landowner. Delhi is the only State where they keep deducting to the level it becomes unviable to develop. Haryana takes only 10% land while Delhi needs 40% and on top again 45%. Why?
v)If a developer sells super area he is a cheater but if Govt deduct two times land for calculating FAR it is fair?
vi) Effectively it is less than 1 FAR on total land area which is totally unfair and unreasonable. It is most idiotic to think to make high rise flats in such a poor FAR.This FAR is just good enough to make plotted colony.
It is good to visualize high rise buildings like Singapore or Shanghai on paper but ground reality is with such a poor FAR it is a hopeless dream. Daydreaming doesn't cost anything especially when there is no stake involved.
DDA is totally unfair and wrong to do double deduction of FAR
vii) The reason for low FAR is given as less availability of water.
What a joke. Let us analyse this-say one family of 4 needs 20 litre of drinking water for life to sustain and there are 100 such families. Can we ask them to keep alive saying u just survive based on 5 litre water a day for the family.
Can they survive? Not at all. All will die.
The better option is to reduce the total developable area say half or 1/3rd or what can be sustained. In the meantime look for other alternatives like rain water harvesting or other measures to get it resolved in due course.
viii) High rise buildings are much costly and take a long time to develop .
People in NCR prefer plotted flats more than group housing flats. There are huge stocks of flats lying unsold in NCR.
ix) It is interesting to note that a huge number(50+) of Approved Group housing projects in haryana has applied for downward revision of their FAR for deen dayal plotted colonies(plotted colony).
x) This policy prevents small farmers/landowners to be part of development and has to be at mercy of bigger developers on a term they define.
Even the people who own more than 5 acre will have no say in the consortium.
It is something like making a policy for some giant who can develop 250-500 acre of land /housing. How do farmers fit in this situation?
xi) There is no clarity that developers will have to develop the land which they own or will get different land parcels. In that case why maps etc are being asked to submit. if other land parcel is given then who will bear stamp duty (two times - 1st on surrender and 2nd on getting new land parcel and then finally on finished flat)
While it is very tough for a developer to earn 10% profit the loading of such duties to the tune will make them flat.
xii) DDA has totally ignored present section 8 of delhi land reform act (under which farmer has to hold min 8 acre of land) It needs to be removed for effective implementations.
xiii) There is a huge capital shortage in the whole country. The bank interest cost itself is about 10% pa. The more time being taken by govt. and agencies, the holding cost of land and projects is increasing more and more. Most investors have been stuck badly due to policy delays.
4. No Clarity of EDC, IDC charges
i)Is the Govt or DDA still not able to calculate charges despite more than 50 years of experience and experts in the same field. Can't they set the narrative.
ii) If not, how does the government expect developers to build flats with fixed prices for customers with no escalations?
iii) it shall be noted that approx. all charges are about 1.1 Cr /acre in Haryana for DDJAS while in delhi it is indicated to be 2Cr+40% surrender of land which is exorbitant nature. No such government in and around NCR has been with such high cost.
5. To develop infra roads, facilities for the city are work of a Government -why it is being pushed to developer entities.
6. Past Master planning of having residential estate is totally wrong especially after covid impact. The usage shall be changed to the tune of 10% for offices 5% for commercial & 40% for residential 5% for facilities so people can live near to the place of work and get all facilities nearby making a self-sufficient way of living.
In Singapore Govt is giving additional bonus FAR for mix use developments/additions - same building having office/shops/residences (see www.ura.gov.sg
POSSIBLE WORKABLE SOLUTIONS to help everyone.
1.The policy shall be amended to work similar as that of DEEN DAYAL AWAS YOJNA in Haryana.
2. The land shall be plotted in a range of 60-200 meter with S+4 permission with 2.5 FAR. This will enable fast development of the area and accommodation for the public.
3. Each Developer shall be allowed to develop on minimum land of 5 Acre.
4.Govt shall create infrastructure of water, sewage, road and electricity or choose areas which are easier to develop in a phased manner.
5. Provision of surrendering FAR in lieu of EDC for those who cant pay EDC else they will be scapegoat of bigger players.
6.The current policy must be revised and rather scrapped and a new policy shall be implemented immediately on 1st priority.
We therefore wish to seek your esteem help in resolving the matters so that whole public can be benefited to the tune of ATAMNIRBHAR BHARAT of Hon'ble Prime Minister Sh Narender Modi ji.
Delhi which is capital of India can become a world class smart city to live & work.
How long do we still need to show our pathetic state of capital of India to the world?
1.Huge number of Public of delhi city (who is paying 5-10 time land prices due to lack of organied development)
2.Land owners and farmers
1. Policy of Deen Dayal Jan Awas Yojna of Haryana town planning