Mortgage 10% Land to DTCP: State Govt

Mortgage 10% Land to DTCP: State Govt

Developers, who have launched projects to sell affordable plots under the Deen Dayal Jan Awas Yojana (DDJAY) affordable plots scheme, will no longer be required to freeze 50% of the plots as a new policy decision —taken by the state cabinet on Friday—now requires them to mortgage 10% of the project land to the department of town and country planning (DTCP) as security for external development costs or internal development costs.

City based realtors, who have been developing plots under the DDJAY scheme, said the decision will reduce the artificial scarcity of plots created in the past as 50% plots were required to be frozen till the completion certificate was obtained.

Deen Dayal Jan Awas Yojna (DDJAY) is Haryana government’s initiative to encourage high-density plotted colonies development in medium and low potential towns of Haryana. The objective behind commencement of this scheme was to curb the mushrooming of unauthorised colonies and achieve the target of ‘housing for all by 2022’.

A spokesperson of the Haryana government said during the cabinet meeting chaired by chief minister Manohar Lal Khattar on Friday, it was decided that the provision of freezing 50% plots shall be removed in the projects under the DDJAY affordable plotted housing policy, 2016.

The spokesperson said instead of freezing the plots, the colonizers will have to mortgage 10% of the plots in favour of the director of DTCP to cover the external development charges and also ensure they don’t leave a project incomplete.

According to the new norms, the developers will get more options to construct community sites but they will not be allowed to charge fees from the operation of these community facilities. Another condition made imperative by the government is that final completion certificate for the colony will be given only after the developer has obtained occupation certificate for the community site.

Developers and consultants based in Gururgam said it is a positive move as more plots will be available to buyers and this will reduce the cost of available plots and floors.

Pradeep Aggarwal, chairman and founder of Signature Global, a city-based affordable housing developer, said most developers had sought this concession as large chunks of land remained unutilized as they cannot be sold. “Freezing plots was creating an artificial scarcity and this law was made when the Haryana Real Estate Regulatory Authority was not operational. Now, the new projects are under tight scrutiny and it is difficult for a developer to leave a project incomplete. This will also help in keeping the prices stable as availability will increase,” said Aggarwal.

Brokers too said the change in rules will help all stakeholders as property sales are likely to increase. “More deals will mean more business for everyone. The government will also earn more revenue,” said Sanjeev Thakur, a real estate dealer based on Golf Course extension road.

Source : Ht

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