The National Capital Territory of Delhi Act, 2019, was introduced in favour of those residing in unauthorised areas. There was a provision for residents to buy properties which they possessed without legal support and be able to make transactions through it. It was beneficial to lakhs of people living in unauthorised colonies. Keep reading to learn about the act and why it was introduced in detail.

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The National Capital Territory of Delhi Act was introduced in the Lok Sabha on November 26, 2019. It was passed on November 28, 2019, from the Lok Sabha and Rajya Sabha on December 11th, 2019. It was introduced in favour of recognising the property rights of migrants settling in unauthorised colonies in the capital.

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Mentioned below are some key features of the NCT of Delhi Act:

Recognition of Property

NCT of Delhi Act provides recognition of property rights to those who are settling in unauthorised colonies of Delhi. It allows the central government to regularise transactions of immovable property with the help of Agreements, Will, Power of Attorney, Sales Agreement or any other evidence of consideration that they hold.

As per this act, residents of unauthorised colonies who have registered their claim to a property on an authorised Will, Agreement or Power of Attorney shall be given the right to ownership. They will have the right to sell, rent or mortgage their property with the help of the authorisation slip that they receive.

Resident

According to the Bill, a resident would be someone with physical possession of any property who carries valid documents as proof of possession. These documents could be anything that serves as proof of purchase of an unauthorised property such as sale deed and power of attorney.

It also identifies people as residents if they are legal heirs of the existing residents. Tenants, licensee or people taking temporary shelter on the property are not considered residents.

Payment of Charges

In order to obtain such ownership, residents of unauthorised areas are needed to pay certain charges. These charges are notified by the central government. An authorisation slip contains details of all the charges payable for ownership along with the stamp duty and registration charges.

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• This act was passed to provide ownership rights to those settling in unauthorised properties. 
• Residents who buy these properties do not pay taxes as they do not have legal ownership. This is why these areas are underdeveloped. Most of these colonies lack basic necessities and sanitation facilities.
• It is also difficult for people to purchase property in these areas as loan approvals are difficult. Banks only provide loans for properties in those areas if they are considered unauthorised or illegal. Buyers rely on private money lenders for a loan that charges a very high-interest rate, making it difficult for people to afford it.
• There has been a change in possession of such properties multiple times, but stamp duty charges were never paid.
• Considering the issues the residents of unauthorised colonies faced, the government decided to provide them with ownership rights.

Some of the challenges faced by the NCT of Delhi Act are listed below:

• Multiple people could claim ownership of one area as several properties were built over a single area.
• There needs to be more information or record available for those houses that have been built without structural safety.

Residents of unauthorised areas of Delhi have been in turmoil for a long time. The National Capital Territory of Delhi Act granted them ownership of their property, making the situation slightly easy. Authorities are now concerned and focused on tackling the challenges that come along with the act.