Confusion on Delhi`s land-use norms

Press Trust Of India / New Delhi May 23, 2005

The Delhi Development Authority(DDA) may be the nodal agency for preparing the master plan of the Capital, but it seems the civic body is itself not sure of the land-use norms here.

Unaware of the fact that two plots of land had been categorised for "rural use" under the 2001 Master Plan, DDA awarded contracts to built apartments in Mehrauli and Vasant Kunj to two private construction companies, at a cost of Rs 71.34 crore.

The projects to construct 1,702 residential apartments were to be completed within a specified time-frame.

However, a writ petition was filed in the Delhi High Court, which brought to light the actual land-use status of the plots.

The court in September 2002 ordered the construction work to stop till the land use norm was changed. But by then the damage had been done for the authority.

The civic agency had already paid Rs 1.49 crore as the first payment to Larsen and Toubro Ltd and Ahluwalia Contractors Ltd, which became blocked for more than two years, according to the report of the Comptroller and Auditor General of India (CAG) tabled in Parliament.

Ahluwalia contractors even filed a Rs 50 lakh claim against DDA, on account of losses suffered by it, owing to the suspension of work.

The land use norm was finally changed from rural to residential in January last year and Larsen and Toubro Ltd asked to resume the work.

The CAG noted that the failure of DDA to ensure conformity with the land-use norms as per the Master Plan before the work was awarded, resulted in the delay in completion of the work, as well as blockage of Rs 1.49 crore paid to the contractors.

It also exposed the authority to claims of losses due to the suspension of work and payment of compensation to the contractors, besides additional liability on account of cost escalation of the projects, the CAG said.

The urban development ministry had directed DDA not to take up any such work in future without obtaining prior statutory approval and to also to make sure that the provisions of the master plan were not violated.