Conundrum of illegal colonies
UNAUTHORISED REPORT As the government prepares yet another policy for regularisation of illegal colonies in Punjab, we look at problem of illegal colonies and challenges in the regularisation process
CHANDIGARH: While the government works and reworks on new regularisation policy for illegal colonies, there are several issues which can derail any of its plan and policy to solve the problem of unauthorised colonies and in the process failing to improve the main objective of improving living conditions of the residents of such colonies.
THE INVENTORY ISSUE
Official figures for the total number of unauthorised colonies in the state have witnessed an increase over the years as the government rolled one extension after another in the regularisation policy.
According to the white paper presented by the newly formed Congress government in the state assembly in June last year, the total number was pegged at more than 6,500 unauthorised colonies. The paper also mentioned that in an earlier survey, the number of colonies was counted at 5,300. The latest official figures peg illegal colonies anywhere between 7,000-8,000.
Official figures, however, may not present the actual ground reality when it comes to illegal colonies. Number of total colonies is hotly contested by the colonisers in the state. “There are around 20,000 illegal colonies in the state. While the state government contends around 20,000 acres is under illegal colonies, by our estimates the unauthorised colonies are spread over more than 60,000 to 70,000 acres,” says Kultar Singh Jogi, president, Punjab Colonisers and Property Dealers Association.
The housing department officials admit that it is difficult to fix boundaries and number of allottees in all illegal colonies when it comes to implementation of the regularisation policy on the ground. Without fixing the inventory, it will be difficult for the government to regularise colonies in the state.
“Colonisers in earlier policy announcements exploited lack of inventory details like boundaries of illegal colonies or the area. In the absence of such details, they could add newer tracts of land and not only older areas under the ambit of the regularisation policy. In this way, they could only pay the much lower composition fees than the steep government charges like change of land use charges and external development charges,” said a senior housing department officials, on the condition of anonymity.
This exercise can be repeated if the government comes out with a regularisation policy without exact maps or boundaries of the unauthorised colonies. The problem of lack of exact information about illegal colonies is acute in the municipalities.
There have been suggestions regarding the use of old and new satellite imagery of the colonies to pinpoint their location, area, boundary and expansion over the years, but the senior housing department officials admit that this exercise is still in early stage. Such a situation has only led to expansion of the illegal colonies in the state.
REGULARISATION CHARGES: NO DETERRENT
The consistent increase in the number of illegal colonies, both in the official and non-official numbers, in successive regularisation policies is also attributed to the lower composition or regularisation charges for unauthorised colonies.
For instance, in the last policy announcement in 2016, the composition fee for developments before 2007 was 1% of the collector rate or ₹50,000 per acre minimum or ₹2 lakh per acre maximum.
For colonies developed after 2007, it was 4% of the collector rate or ₹5 lakh per acre minimum or ₹10 lakh per acre maximum. Even though the composition fees suggested in the draft policy for regularisation of unauthorised colonies has been increased, yet these are still low than charges on legally approved colonies.
Under the draft policy, the suggested composition fees as a percentage of the collector rate varies from 3% to 6% or ₹3 lakh per acre to ₹20 lakh per acre depending on the year of establishment of the colony.
A promoter getting all requisite government approvals have to pay a combination of EDC, CLU and other charges ranging from ₹10 lakh to ₹50 lakh per acre depending up on the location of the project.
In addition, the developer has to spend around ₹20 lakh to ₹25 lakh per acre on internal developments. In case of government agencies spending on the internal developments is still more.
“In case the government wants to break the vicious cycle of unauthorised colonisation, it can be only done by imposing deterrent charges, at least 3-4 times of what a licenced coloniser has to spend and pay, otherwise such policies will keep creating havoc,” said MS Aujla, retired director, town planning, local government department, Punjab.
In addition to paying less in terms of the development charges, the coloniser of the illegal colony also benefits in terms of higher salable area. “The unauthorised coloniser sells around 75% to 80% of the total area against permissible 55%, just paying 15-20% of EDC, CLU, etc. He is also not responsible and accountable for internal development works and maintaining the project for five years,” said Aujla.
FINANCIAL VIABILITY
While the coloniser gets an easier way out of the mess, created in the form of illegal colonies by paying low regularisation charges, the state government will have to bear the burden of internal developments.
“It is easier said than done. The state government is already struggling with its financial position. Urban development projects like Smart City and AMRUT are failing to take-off in the state because the state government can’t fulfill its mandated financial obligations. In this situation how will it be possible for the state government to spend on the internal development of all illegal colonies in the state. Ultimately, the municipalities will have to bear this burden as happened in areas like Zirakpur where illegal colonies were included in the municipal areas and responsibility for internal development fell on the municipality. Urban local bodies are in a very bad shape financially, and under such a big additional financial burden they will collapse,” said a senior local government official who didn’t want to be named.
There is also a question of what happens to residents of a colony wherein the coloniser does not come forward for regularisation. “The draft policy suggests that the resident welfare association of the colony should be allowed to apply for regularisation. In such a case, will the residents be able to bear the financial burden of paying all the requisite charges for regularisation, which the coloniser was supposed to?” asked the official.
MISPLACED PRIORITIES
According to the 2017 white paper, under the previous regularisation policies, the regularisation charges to the tune of approximately ₹400 crore were not used for long and then subsequently out of these funds to the tune of ₹250 crore to be spent on the up gradation of these colonies, were also got deposited into the State treasury as a short term loan thus, leaving hardly any funds for authorities to undertake development works.
Besides being a political issue in the state, regularisation of illegal colonies also impacts the future of urban development and residents’ quality of life in the state.
The very first line of policies introduced so far and the draft policy state the purpose for these policies, “to provide basic amenities to the residents of these colonies”.
Aujla said, “The state government instead of creating a policy that suits the coloniser of illegal colonies should focus on the residents and plan likewise.” The process of developing an approved colony also has to be made easies, and beneficial both in terms of approval procedures and financial costs.