Cabinet okays Bill on illegal colonies’ ownership rights

New Delhi, November 20 

The Union Cabinet approved a Bill on Wednesday to provide a legal framework to grant ownership rights to people living in unauthorised colonies in Delhi, Union Finance Minister Nirmala Sitharaman said. 

The decision is politically significant as it will benefit millions of poor migrants who hold key to the assembly election due early next year and had backed the AAP in large numbers in the 2015 Delhi polls.

The Bill to regulate unauthorised colonies in the National Capital Territory is likely to be introduced in Parliament on Thursday, sources in the government said.

Finance Minister Nirmala Sitharaman said the Cabinet approved the Bill to implement the proposal cleared recently. She described it as a legal framework which includes various elements, including amendment to the Income Tax Act. 

The move does not apply to 69 affluent colonies identified by the Delhi Development Authority (DDA), including Sainik Farms, Mahendru Enclave and Anantram Dairy, Union minister Hardeep Puri had said when the Cabinet had approved the proposal last month. 

The proposed Bill is aimed at recognising general power of attorney (GPA), will, agreement to sell, purchase and possession documents, which will be a one-time relaxation for this purpose for the residents of these colonies.

The Bill will also provide for registration charge and stamp duty on last transaction and also address the issue of income tax liability on account of less than circle rate charges.

The rights will be conferred on payment of nominal charge based on carpet area/plot size. For colonies on government land, the charge will be 0.5 per cent (for less than 100 sq m), 1 per cent (for 100-250 sqm) and  2.5 per cent  (for greater than 250 sqm), of the circle rate of highest category of locality of the residential area surrounding the unauthorised colony. — PTI