DDA does away with double stamp duty for EWS allottees

New Delhi: As a relief measure in view of the COVID-19 pandemic, the Delhi Development Authority (DDA) on Tuesday has decided to simplify the process of selling flats to residents belonging to the Economically Weaker Section (EWS) and done away with the double stamp duty 50 per cent of these sales, thereby further subsidising the affordable housing options. The Delhi Development Authority also extended the time for paying for additional floor area ratio and use conversion charges on reduced rates up to December 31, officials here said on Tuesday.

Earlier, the DDA said EWS residents were allotted flats by it but double stamp duty was charged because of the procedure that involved the developer entity (DE) first selling the flat to the DDA, which would then allot the home to the beneficiary. In this double transaction, the burden of double stamp duty was being transferred to the beneficiary, the authority said.

The decisions cam at the urban body's meeting, chaired by Delhi L-G Anil Baijal who tweeted later on Tuesday, "Chaired @Official_dda Authority meeting. Sale of 50 per cent of EWS flats of DDA quota in group housing projects simplified to avoid double stamp duty thereby reducing cost & facilitating expeditious allotment."

The DDA explained, "Now the DE shall be allowed to undertake actual transfer/transaction of the saleable component under its share/ownership to the prospective buyers only after the prescribed land and EWS housing component is sold/transferred to the eligible beneficiaries identified by DDA/local bodies at the rates prescribed by DDA."

Moreover, on the decisions of payments on FAR, the authority said that the decision was taken in light of the ongoing pandemic as a relief measure. The authority said it would apply to "residential properties/Cooperative Group Housing properties, on mixed-use/commercial streets and commercial properties (excluding hotel and parking plots) and use conversion charges for Mixed-Use/Commercial Use of Premises and Shop-cum-residence plots/complexes later designated as LSCs".

FAR is the ratio of a building's total floor area (gross floor area) to the size of the piece of land, upon which it is built.