“The Deen Dayal Jan Awas Yojna” Affordable Plotted Housing Policy, 2016, no longer contains a provision that requires affordable housing developments to freeze 50% of their saleable area in order to boost the real estate market and ensure that their benefits are received by the end users. During the Friday Cabinet meeting, presided by the chief minister Manohar Lal Khattar, changes to the policy were accepted.
As per the amendment, “as a matter of security against any possible delinquencies in completion of the project, now the colonizer will be required to mortgage residential plots covering a saleable area of 10 per cent, each against the bank guarantee required on account of IDW as well as EDC in favor of the director. Furthermore, colonizer will not be allowed to earn any profit such as membership charges/fees from such community building. Lastly, the colonizers are required to get the occupation certificate of the community site before grant of final completion certificate.” Additionally, the developer will have the option to build a community site based on necessity at its own expense for use by colony residents as a whole and to set up a facility for the community early on.
The earlier land freeze restriction prevented developers from selling the projects on the open market. The action will provide options for home buyers while enabling cash flow in the industry. This much-anticipated action has been a holiday gift for homebuyers and developers.