Land pooling Policy

The Delhi development Authority, the nodal agency for development in Delhi, and under the MPD 2021, has approved the land pooling policy, in principle. The said policy awaits the final nod from the Ministry of urban development. This policy assures fundamental changes in the way of acquisition and development of land, in Delhi. The MUD would notify the final policy after the objections and suggestions by public, are considered, and taken into account.

The first Master Plan of Delhi was formulated in the year 1961. The policy then of DDA’s was to acquire large chunks of land, directly from the land owners,  at a price determined by DDA. DDA would then undertake the master planning and then sell / develop the land, piece by piece. When the land valuations were nominal, this process was acceptable. .
In the 1960’s, the private sector wasn’t strong enough in the economy to shoulder the responsibility of urbanization & housing. Hence, the government took on the responsibility, and the land acquisition became the norm. From the 1980’s, the private sector through their incremental ability rightfully started seeking a larger role. In the past couple decades, the demand surge from the consumers actually made the supply from the government stable inadequate, and hence, the majority of supply was created by the private sector.

The land valuations rose phenomenally under this increased demand, as well as the higher spend & investment appetite. The government continued to rest on the provisions of the Land acquisition Bill 1894, which was seemingly unfair to the land owners, for compensation as well as rehabilitation. With the many instances which happened in West Bengal, Andhra Pradesh, Haryana, NOIDA etc, it became increasingly clear to the government that forceful acquisition cannot be a tenable & legal method.

Also, the private sector sought a more free market methodology, as the government acquisition could potentially be a delaying factor for projects.

Hence, this Land pooling policy. Under this policy, land owners can surrender their land holding into the central pool (for the benefit of the readers, the technical terms avoided here), and be a stakeholder to the development proposed on their land. Once the land is pooled, the landowner would get back 40-60% of the total land surrendered, as developable land, “For once, the disputes on undervaluation of land for acquisition would be removed, and the process would seem fair to every land owner, irrespective of the size of their land holding. The 40-60% land that DDA would retain with them would be utilized for creation of infrastructure as well as monetize it against specific purposes, by DDA.

There are two basic types of Land Pooling which have been announced so far –

•    20 hectares and above where 60% of land would be returned to the land owner
•   02 and 20 hectares, where about 48% of land pooled would be returned to the land owner.

According to a proposal, DDA would set up a separate institutional framework with officials from DDA’s finance; accounts; land management; planning; legal and engineering departments. All the plans would be prepared by GIS technology. If necessary amendments would be made in Delhi Municipal Corporation Act – 1957; Delhi Land Reforms Act – 1954; Land Acquisition Act – 1894 and Delhi Development Act – 1957.

The Delhi master plan MPD 2021 is touted to be the largest ever real estate opportunity in the country for the demographic demand as well as the administrative commitment provide the triggers for growth. “Delhi’s master plan is designed to accommodate an additional population on 10 million people, as well as facilitate the creation of almost 1.6 million dwelling units, and the land pooling policy being the first of the many innovative methods towards the vision to reality.




NDTV India: Delhi Land pooling – too early to invest?




Mr. Ramesh Menon, Certes Realty Ltd, in Land Pooling Policy Conference




© 2020 Certes Realty | All Right Reserved
Contact # 9015-330-330 | Powered by: Catabatic Automation Technology
Protected by Copyscape Online Copyright Protection