Government approves of regularisation of residential colonies in Delhi

The major announcement of Union Cabinet passing the ordinance to regularise 895 unauthorised colonies that have come till June 1, 2014, has given a sigh of relief for about 60 lakh people of Delhi. As per the media reports a separate cabinet note is in the process to restrict the use of Rule81 of the Land Acquisition Act and for the regularisation of the colonies. According to the norms in the rule, agricultural land cannot be used for any construction purpose. 

This regularisation will be benefited in a lot of aspects, such as more planned colonies will come up with proper electricity, water and drainage facilities. The removal of this restriction will be a boon for the developers as well, as it will be a clear way for them to construct more properties that can be available through loans.

Though this regularisation will increase the property rate, but still there will be rise in more potential buyers also, due to the loan facility and comparatively less amount to shell out to buy homes for them. At the same time, buyers will take interest in buying these properties for the same reason of loan and the best pricing of the property. As a result the banks will get benefit in terms of more customers to avail of home loans. Lastly, the regularisation will enable the residents to get their properties registered and avail benefits associated with the registration.

However, there is no doubt that the news of regularisation of several unauthorised colonies in Delhi has brought in great hope altogether and will remove major and some basic road blocks. For instance, if someone of middle class income group wants to buy a house in South Delhi, with the help of the loan within a limited budget of Rs 30-40 Lakhs. It is impossible for him to buy one in places like GK or Green Park, Lajpat Nagar or even Malviya Nagar. It's impossible for him or her to even think about it. But on the other side South Delhi also has places like Chattarpur, Mehrauli or even Khanpur which are centrally located and the best part the property rates are not that high. But these areas are unauthorised and loans are not available, hence the person is stuck. 

Hence, this regularisation (which is in line) will be the best gift of this year for those who wants to buy their dream home within a limited budget.