New Delhi, can bid for residential plots
RAJA AWASTHI & ISHANI DUTTAGUPTA
TNN
Delhi Development Authority (DDA) has changed its land auction policy
allowing the diaspora, banks and corporates a chance to take part.
There is some good news in store for all non resident Indian (NRIs)
and people of Indian origin (PIO) who wished to own a house back home.
Now, they could apply for a bid for a piece of land in Delhi Development
Authority (DDA) land auction.
With the NRIs, the corporate bodies, public and private sector banks
too can bid for residential plots. This new policy will allow these
changes with a rider — that the banks and private firms will use
the plots only for residential purposes and not for nothing else.
Says RK Singh, commissioner (land disposal), DDA: “It has always
been our endeavor to offer the best to our customers. Inclusion of these
categories in our auction programmes is a part of our effort to provide
them with a lifetime opportunity to make their own dream houses at prime
locations in the Capital at a reasonable price. This decision will not
only expand our clientele but will also be a dream offer for an entirely
new set of investors.”
Adds Rothas Goel, chairman and managing director, Omaxe Group: “In
Delhi there is a lot of demand for residential plots as it gives the
buyer enough freedom to build a flat of his own choice.
This scheme is the first step towards allowing private participation
in housing activities. For the first time, apart from these organisations,
NRIs and PIOs will also be allowed to bid in these auctions. And we
believe that the NRI community is a big market that is waiting to be
tapped.”
Jagmohan Singh, secretary general, NRI Institute says: “The NRI
has appreciated the move by the government to treat them on par with
the Indians. There is a property boom in India and definitely want to
participate in this sector. Many of them have made their fortunes from
the real estate sector.”
The new policy initiative, is in line with guidelines approved by Reserve
Bank of India under the Foreign Exchange Management Act (FEMA). This
new scheme is expected to augur well for the residential real estate
markets in the Capital. Till now NRIs have been targeted by developers
for high quality residential schemes for new projects mostly in Gurgaon
and other suburbs. But now with DDA opening up the possibility of NRI’s
to bid directly for plots, the process of land acquisition should become
much easier and transparent for those among them looking to acquire
plots within Delhi.
Says T Charkarvati head, India Property Research: “The fact that
apart from NRI’s PIO’s corporate bodies, PSU and private banks
are now allowed to participate in the auctions could also generate higher
levels of demand from such institutions, which had to previous resort
to land acquisition through market channels. This would make the market
more transparent and buoyant.”
“This is a golden opportunity for both the public and private
sector banks to build residences for their employees in the capital
itself. These plots are strictly for residential purposes and not for
any commercial activity. Anybody bidding for the plots should, therefore,
take the necessary precautions not to violate these rules,” says
Singh.
The decision by the development authorities is a significant step in
allowing good residential developments in the city to cater to one of
the largest and affluent catchments. The decision is exemplary given
that it was timed perfectly in a buoyant market. Hence, the realisation
from it has also been unprecedented.