Freehold conversion of flats in CGHS
By Gaurav Vivek Bhatnagar
Holding out that several anomalies exist in the Delhi Development Authority’s scheme of free-hold conversion for flats in Cooperative Group Housing Societies (CGHS), a federation of residents’ welfare associations has sought equity in the process and demanded that these lacunae be addressed urgently so that those keen to dispose of their properties are able to do so with consummate ease.
In a statement, the Delhi Residents’ Front said the Revenue Department of the Delhi Government had while implementing the Supreme Court order of October 2011 recently come out with a notification banning sale or purchase of properties on general power of attorney (GPA), power of attorney or agreement to sell documents. Thus, now to transfer the property, flat owners or residents of CGHS, DDA and builder-constructed commercial and housing complexes in Delhi are now required to first execute a sale deed after obtaining a clear title of the ownership of the property through free-hold conversion scheme of DDA. “It means every allottee, GPA, agreement to sell property occupier in Delhi will have to first shell out a few lakhs to obtain a clear title of the property they wish to sell,” said DRF president Sanjiv Kumar.
This, he said, is leading to several problems for such residents since many CGHSs across Delhi have not obtained C and D forms due to violations in sanctioned building plans and other deficiencies. In absence of these forms the flat owners cannot convert their flats to free-hold. Further, he said, at least 51 CGHSs in Delhi are defaulters in repayment of loans taken by them from various banks and the land and the super-structures are lying mortgaged due to which again their property cannot become free-hold.
Likewise, in some societies, there lie liabilities towards composition fee and ground rent of DDA which again is causing problems in conversion.
Similarly, for residents, obtaining a certificate of proof of payment of ground rent and details of plinth area of flat or any document from the society is often an onerous task, Mr. Kumar said.
Furthermore, the Front president said the free-hold scheme of conversion applicable to CGHS flats is “discriminatory and confers only inferior ownership title to the flat owners vis-à-vis plot owners in their localities”.
He said the CGHS flat owners are also required to pay much more for free-hold conversion by DDA in comparison to the plot owners. “In Rohini for example, an allottee or GPA occupier of plot of area up to 50 square metres is only required to pay processing fee of Rs. 200 for executing the conveyance deed. On the other hand an allottee of plot of area of 100 square metres is required to pay Rs.20,063 for it. A GPA or agreement to sell plot occupier of same area is required to shell out Rs.42,934 for the conveyance deed.”
The rates go much higher in CGHS societies. Here an allottee having plinth area in the range 30-50 sq. mtr. is required to pay Rs.31,115, while a GPA or agreement to sell occupant is required to shell out Rs. 67,475 for the same deed. Similarly an allottee in CGHS having plinth area in the range 75-100 square metres has to pay Rs. 63,455 for the registered conveyance deed; while for GPA or agreement to sell occupiers of flats of same plinth area the rate goes up to Rs.1,39,660.
“As is evident from the above example the amount of free-hold conversion of flats is much higher as compare to that of plots in the same locality irrespective of number of floors and built up area on each floor of the plot,” said Mr. Kumar, demanding that these anomalies be removed and the process be streamlined.
Claiming that the Government has “cheated flat owners in CGHS in Delhi by imposing such a Draconian free-hold conversion formula,” the Front has noted that “the solution for removal of anomaly in conversion scheme lies in converting the whole land of each CGHS to freehold either by charging ground rent of the remaining period of lease from them or any nominal amount in consultation with the people so that individual flat owners do not have to pay huge sums for obtaining inferior ownership rights.”
It has also demanded that rates of conversion be rationalized for all categories of residents.
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