The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Act, 2019
# THE NATIONAL CAPITAL TERRITORY OF DELHI (RECOGNITION OF PROPERTY
 RIGHTS OF RESIDENTS IN UNAUTHORISED COLONIES) ACT, 2019
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 ARRANGEMENT OF SECTIONS
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 SECTIONS

1. Short title and extent.
2. Definitions.
3. Recognition of property rights.

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# THE NATIONAL CAPITAL TERRITORY OF DELHI (RECOGNITION OF PROPERTY
 RIGHTS OF RESIDENTS IN UNAUTHORISED COLONIES) ACT, 2019

 ACT NO. 45 OF 2019

[11th December, 2019.]

An Act to provide special provisions for the National Capital Territory of Delhi for recognising

# the property rights of resident in unauthorised colonies by securing the rights of ownership or transfer or mortgage in favour of the residents of such colonies who are possessing properties on the basis of Power of Attorney, Agreement to Sale, Will, possession letter or any other documents including documents evidencing payment of consideration and for the matters connected therewith or incidental thereto.

WHEREAS there has been phenomenal increase in the population of the National Capital Territory of

Delhi in the last few decades owing to migration and other factors but development of planned housing
colonies have not kept pace with the requirements of a burgeoning population resulting in the increase of
unauthorised colonies;

AND WHEREAS number of unauthorised colonies have been identified in the National Capital

Territory of Delhi on the basis of applications made by the Residents Welfare Associations for
regularisation in pursuance to notification number S.O. 683(E), dated the 24th March, 2008 of the Delhi
Development Authority, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section
(ii), dated the 24th March, 2008;

AND WHEREAS the properties in these colonies are not being registered by registering authority 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 of said properties;

AND WHEREAS the ownership of the properties in unauthorised colonies have been transferred several

times through registered or un-registered or notarised Power of Attorney, Agreement to Sale, Will,
possession letter and other documents including documents evidencing payment of consideration and
stamp duty on these multiple transactions have neither assessed nor been paid;

AND WHEREAS the stamp duty on the conveyance deed or authorisation slip, as the case may be, is

leviable as per minimum rates (circle rates) specified in the notification of the Government of the
National Capital Territory of Delhi published vide number F.1(953) Regn. Br./ Div. Com/HQ/2014, dated
the 22nd September, 2014 or the sale consideration mentioned in the conveyance deed or authorisation
slip, as the case may be, whichever is higher;

AND WHEREAS the Supreme Court in the case of Suraj Lamp & Industries (P) Ltd. Vs. State of

Haryana & others vide its judgment dated the 11th October, 2011 had 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;

AND WHEREAS keeping in view the socio-economic conditions of the residents of these unauthorised

colonies and ground realities, it is desirable 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 re-development that may improve existing infrastructure, civic and social
amenities which may lead to better quality of life;

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AND WHEREAS it is expedient to have a law to recognise and confer rights of ownership or transfer or

mortgage to the residents of unauthorised colonies as one time special measure.

BE it enacted by Parliament in the Seventieth Year of the Republic of India as follows:—

**1. Short title and extent.—(1) This Act may be called the National Capital Territory of Delhi**

(Recognition of Property Rights of Residents in Unauthorised Colonies) Act, 2019.

(2) It extends to the National Capital Territory of Delhi.

**2. Definitions.—In this Act, unless the context otherwise requires,—**

(a) “resident” means a person having physical possession of property on the basis of a registered

sale deed or latest Power of Attorney, Agreement to Sale, Will, possession letter and other documents
including documents evidencing payment of consideration in respect of a property in unauthorised
colonies and includes their legal heirs but does not include tenant, licensee or permissive user;

(b) “unauthorised colony” means a colony or development comprising of a contiguous area,

where no permission has been obtained for approval of layout plan or building plans and has been
identified for regularisation of such colony in pursuance to the notification number S.O. 683(E), dated
the 24th March, 2008 of the Delhi Development Authority, published in the Gazette of India,
Extraordinary, Part II, Section 3, Sub-section (ii), dated the 24th March, 2008.

**3. Recognition of property rights.—(1) Notwithstanding anything contained in the Indian Stamp**

Act, 1899 (2 of 1899) and the Registration Act, 1908 (16 of 1908) as applicable to the National Capital
Territory of Delhi or any rules or regulations or bye-laws made there under and the judgment of the
Supreme Court in the case of Suraj Lamp & Industries (P) Ltd. Vs. State of Haryana & others, dated the
11th October, 2011, the Central Government may, by notification in the Official Gazette, regularise the
transactions of immovable properties based on the latest Power of Attorney, Agreement to Sale, Will,
possession letter and other documents including documents evidencing payment of consideration for
conferring or recognising right of ownership or transfer or mortgage in regard to an immovable property
in favour of a resident of an unauthorised colony.

(2) The Central Government may, by notification published in the Official Gazette, fix charges on

payment of which transactions of immovable properties based on the latest Power of Attorney,
Agreement to Sale, Will, possession letter and other documents including documents evidencing payment
of consideration for conferring or recognising right of ownership or transfer or mortgage in regard to an
immovable property in favour of a resident of an unauthorised colony through a conveyance deed or
authorisation slip, as the case may be.

(3) Notwithstanding anything contained in section 27 of the Indian Stamp Act, 1899 (2 of 1899), the

stamp duty and registration charges shall be payable on the amount mentioned in the conveyance deed or
authorisation slip, as the case may be.

(4) Any resident of an unauthorised colony having registered or un-registered or notarised Power of

Attorney, Agreement to Sale, Will, possession letter and other documents including documents
evidencing payment of consideration shall be eligible for right of ownership or transfer or mortgage
through a conveyance deed or authorisation slip, as the case may be, on payment of charges referred to in
sub-section (2).

(5) No stamp duty and registration charges shall be payable on any previous sale transactions made

prior to any transaction referred to in sub-section (4).

(6) The tenants, licensees or permissive users shall not be considered for conferring or recognising

any property rights under this Act.

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