To create ‘competition, open market’, DDA opens doors to private developers

DDA vice-chairman Tarun Kapoor said, “We didn’t want to keep constructing houses on our own. Involving private developers will enable the utilisation of new technology. It will create competition and an open market not dominated by the DDA.”

The developer will have to adhere to the guidelines specified in the Delhi Master Plan-2021, with 15% of the floor area ratio (FAR) for community service personnel and economically weaker sections (EWS), an official said.

“The auction purchaser will have to complete the EWS portion first and obtain occupancy certificate. The developer should not give possession of other flats to anyone before handing over EWS flats to DDA,” a senior DDA official added. The move was approved in a DDA meeting on August 13, and is aimed at meeting the growing demand for housing in the capital, another official said.

“Our plots were lying vacant and being encroached upon, when they should be used for building housing for Delhi. A recent auction showed there is a real demand for property. With private players coming in, the quality of construction will improve,” he added.

The official added that land parcels in South Delhi’s Basant Gaon, North Delhi’s Rohini and North East Delhi’s Vishwas Nagar are among the sites that are to be auctioned.

A former senior DDA official said the move was good, but could result in flats becoming unaffordable: “The cost of flats can shoot up. The person who bids the highest and develops the project would want to sell the flats at a premium rate. Issues may also arise in the acceptance towards the EWS segment in these flats. The DDA should reserve some pockets for the EWS.”