Land pooling is an alternative to the conventional land acquisition method that facilitate land availability for urban development. It is considered as a more efficient tool in comparision to the land acquisition process, as the ownership of land remains with the original owners, post development. In view of this, land pooling is gradually finding widespread acceptance for projects ranging from infrastructure development, for example airport expansion to city level development like Amravati in Andra Pradesh.

The process of land pooling beings with owners putting their land together as per the prescribed norms. This is followed by the selection of the developer or developers either by public or private agency, who will be entrusted to execute development.

DELHI’S LAND POOLING POLICY

What is land pooling?

rising concerns regarding time constraints and compensation. Hence, the ‘land pooling policy’ was introduced.

The land pooling policy was first notified by the Urban Development Ministry in 2013. After this, the policy underwent various amendments and reforms throughout its course. Finally, in the month of October 2018, the Central Government and Delhi Development Authority (DDA) both paved the way for the much-awaited land pooling policy under the 2021 Master Plan for Delhi. The policy is applicable to the entire ‘urbanizable’ areas of the ‘urban extension’ which includes 95 villages of Delhi.

The policy apparently will led to the transition in the responsibility of DDA from developer entity to ‘facilitator and planner.’

How it works?

A pre-requiste for a land to fit under the land pooling policy is that, at least 70% of continuous encumbrance-free land in the sector (as per the Zonal Development Plan) should be available to be pooled and verified by the Revenue Department. After this, 40% of the pooled land would be taken by the DDA (and other service providing agencies) for the development of public & semi-public facilities, roads, recreational spaces and industrial region. Whereas, development on the remaining 60% will be done privately by the consortium of land owners. Overall, land demarcation will be as per the following proportion:

The origin of land poolingResidential

Commercial

Industrial

Road & Circulation

Recreational

Public/ Semi

Public Facilities

53%

5%

4%

12%

16%

10%

Before October 2018, Delhi government has been following Land Acquisition, Development and Disposal Policy for facilitating land availability. This transfer-of-ownership policy was in place since 1961. However, this policy often led to

The eligibility criteria defined by the policy are

Land should fall in the regions demarcated by the policy, i.e. entire ‘urbanizable’ areas of the ‘urban extension’

Land should be in clear and lawful ownership alongside free of any encumbrances

Land should be continuous and at least 70% of the developed area in the sector should be pooled.

Land Redistribution

15 Step process of Land Pooling application

Area of land pooled (in hectares)

After the development of the sector, the land will be be redistributed to the original owners. Land redistribution will be the responsibility of the consortium and would be shared with DDA, as per the ‘implementation plan’.

Land Redistribution(in %)

2-20

More than 20 hectares

48%

60%

Submission of land pooling application form and payment of registration fees

Verification of pooled lands by revenue department

Issuance of ‘Notice for formation of Consortium’ by DDA

Preparation of implementation plan

1

2

3

5

6

7

8

9

10

11

12

13

14

15

Land Pooling Policy being a recent one, its actual implementation is yet to see the light of the day. The practical difficulties will be witnessed only when the policy comes into action. As a proactive measure, DDA has introduced two-stage grievance redressal mechanism to ensure minimum conflict

How can DDA make it effective

Expected completion of Physical Infrastructure by DDA- 5 Years*

Expected completion of All Development by Consortium- 10 Years*

*time period starts after the issue of Final Development License

4

along with consent of all landowners

Formation of contract agreement with terms and condition

Submission of implementation plan, copy of contract and processing fee to DDA

Sector infrastructure planning by DDA specifying 40% of land usage (within 120 days from the date of application)

Intimation of the planning to consortium by issuing ‘Entitlement Certificate’

Grievance addressal, in case of any

Preparation of layout plan by the consortium in accordance with master plan

Approval of layout plan by DDA and issuance of Provisional Development License

Finalisation of Development Agreement

Submission of application for Final Development License by consortium

Issuance of Final Development License on satisfactory compliance and payment of first installment of 20% of total EDC (External Development Charges)

Layout plan approval and building plan approval through single window clearance

Note:- DDA will be setting up an online ‘single window clearance’ specifically for the process of land pooling.

environment.

Also, effective communication strategy needs to be in place to bring transparency and public awareness among all the stakeholders. DDA has already started planning on this lines and are in the proces of hiring consultant for the same consultant.

What it means for Delhi real estate?

along with consent of all landowners

Formation of contract agreement with terms and condition

Submission of implementation plan, copy of contract and processing fee to DDA

Sector infrastructure planning by DDA specifying 40% of land usage (within 120 days from the date of application)

Intimation of the planning to consortium by issuing ‘Entitlement Certificate’

Grievance addressal, in case of any

Preparation of layout plan by the consortium in accordance with master plan

Approval of layout plan by DDA and issuance of Provisional Development License

Finalisation of Development Agreement

Submission of application for Final Development License by consortium

Issuance of Final Development License on satisfactory compliance and payment of first installment of 20% of total EDC (External Development Charges)

Layout plan approval and building plan approval through single window clearance

Note:- DDA will be setting up an online ‘single window clearance’ specifically for the process of land pooling.

The policy also focuses on the long-term sustainable real estate development of Delhi. Thus, the incentives applicable for ‘Green Building’ would also be applicable to the buildings constructed under land pooling policy. Also, the mandatory green building norms as per current regulations would be applicable to all the developments.

Delhi’s land pooling policy is expected to unlock thousands of acres of urbanizable land for development. The potential scope of land development is approximately 20,000-25,000 hectares in which DDA has estimated to build around 17 lakh houses. This land is expected to be used for various purposes, affordable housing being the most paramount. In terms of real estate asset classes, affordable housing has been given the push by increasing FAR (Floor Area Ratio) by 15% for houses of sizes 30-40 sq. mtr. Also, 5% of land usage is assigned to commercial

development, hence, new office supply can be expected around these areas of Delhi. The policy also compensates the land owner in case of under-utilization of FAR. Compensation is in the form of ‘tradable ’ FAR which can either be traded or utilized elsewhere. FAR available for the development of projects under this policy is 200.

Anil Baijal, the Delhi Lieutenant Governor had approved 95 villages for the development of Land Pooling Policy. This would help in the urban expansion of Delhi. So, the peripheral areas of Delhi are likely to see uptick in real estate development. This will result in the effective and sustainable long term development of Delhi NCR.

This real estate development needs to be substantiated with equitable infrastructure development. In order to derive full potential, DDA and other service providers need to expedite its pace in development of the integrated infrastructure facilities.

Looking at Delhi’s real estate market, the new supply created by land pooling policy is not likely to affect the prices of ready-to-move in properties, which are currently in demand. However, once flats completed under land pooling hits the market or the demand of under-construction property increases, prices are likely to rationalise. Hence, rationalisation of price is expected in medium to long term.

Delhi’s land pooling policy is a notable regulation which is likely to shape the future urban development of NCR. It is expected that other states will follow suit!

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