URBAN LAND

DEVELOPMENT
INSTITUTIONS IN NCR
LAND LAW PSDA

SHREYA SAXENA
ENROLLMENT NO. 20817703815
IX-D
 URBAN LAND DEVELOPMENT INSTITUTIONS IN
NCR

Shreya Saxena1

Abstract: The paper delves upon the constitution and functioning of three major urban land
Development Institutions in the National Capital Region, namely DDA, HUDA and NOIDA.
It also highlights the shortcomings of these institutions and suggest measures for their
upliftment.

Keywords: Delhi Development Authority (DDA), Haryana Urban Development Authority

(HUDA), New Okhla Industrial Development Authority (NOIDA), land acquisition, urban
development
_____________________________________________

1. INTRODUCTION

Urbanization in a country is an integral part of the development process. India has a long
history of urbanization which dates back to as early as the Mughal invasion of India. In India,
with the advent of industrialization and subsequently globalization in the 18th century, what
used to be the Presidency towns- Madras, Calcutta and Bombay and the capital- Delhi saw a
massive population boom. People thronged to cities in search of better economic
opportunities.
However, these cities were not well equipped to deal with such mass influx, and soon slums
and hutments mushroomed all across the cities. A need for better and cost effective,
infrastructural facilities echoed through these centers. Thereby recognizing the need for
affordable housing, transportation, educational and medical institutions, pertaining to Delhi,
the Delhi Development Authority (DDA) was developed. Later on Haryana Urban
Development Authority (HUDA) and New Okhla Industrial Development Authority
(NOIDA) were also developed to cater to the growing infrastructural needs.
The paper deals with the origin of these authorities, their structure and functioning and
highlights various drawbacks while suggesting measures to reform the same.

2. THE DELHI DEVELOPMENT AUTHORITY (DDA)

The Delhi Development Authority (DDA) was established under section 3 of the Delhi
Development Authorities Act 1957. The objective of the Authority has been specified under
section 6 of the Act which shall be to promote and secure the development of Delhi according
to plan and for that purpose the Authority shall have the power to acquire, hold, manage and
dispose of land and other property, to carry out building, engineering, mining and other
operations, to execute works in connection with supply of water and electricity, disposal of
sewage and other services and amenities and generally to do anything necessary or expedient
for purposes of such development and for purposes incidental thereto.

1
Student of Vth year, BA LLB(H) Vivekananda School of Law and Legal Studies (VSLLS), Vivekananda
Institute of Professional Studies, GGSIPU
2.1 CONSTITUTION

The Authority shall consist of the following members, namely:-

(a) a Chairman who shall be the Lieutenant Governor of the National Capital Territory of
Delhi, ex officio;
(b) a Vice-Chairman to be appointed by the Central Government;
(c) a Finance And Accounts Member to be appointed by the Central Government;
(d) an Engineer Member to be appointed by the Central Government;
(e) Two representatives of the Municipal Corporation of Delhi to be elected by the
councilors and aldermen of the corporation from among themselves;
(f) Three representatives of the Legislative Assembly of the National Capital Territory of
Delhi to be elected by means of a single transferable vote by the members of the Legislative
Assembly from among themselves of which two shall be from among the ruling party and
one from the party in opposition to the government provided that no member of the Council
of Ministers for the Government of National Capital Territory of Delhi shall be eligible to be
elected to the Authority.
(g) three other persons to be nominated by the Central Government, of whom one shall be a
person with Experience Of Town Planning or Architecture; and
(h) the Commissioner of the Municipal Corporation of Delhi, ex officio. 2

No act or proceedings of the Authority shall be invalid by reason of the existence of any
vacancy in, or defect in the constitution of, the Authority.
The Authority shall establish an Advisory Council for providing advice to the Authority on
the preparation of the master plan and other matters relating to the planning of the
development, or related to the administration under this Act as may be referred to it by the
Authority.
For further assistance, the Delhi Development Authority under section 5-A, has the power to
constitute various committees for proper functioning as may be required.

2.2 POWERS AND FUNCTIONS OF DDA

Declaration and Development of development areas

DDA deals with Declaration of development areas and development of land in those and
other areas. The DDA Act provides for the procedure by which an area may be declared as an
development area. The process can be summarized as follows:

 The Central Government refers a proposal to the Delhi Development Authority, the
Municipal Corporation of Delhi and the Central Government calling for expressing
their views within 30 days.
 The Authority shall not undertake or carry out any development of land in any area
which is not a development area, moreover no development of land shall be under-
taken in any area by any person or body (including a department of government)
unless,- where that area is a development area, permission for such development has
been obtained in writing from the Authority according to the procedure laid down in
the Act.

 where that area is an area other than a development area, approval of, or sanction for,
such development has been obtained in writing from the local authority concerned in
2
Section 3, Delhi Development Authority Act, 1957
 accordance with the provisions of the regulations relating to the grant of permission
for development made under the Delhi (Control of Building Operations) Act, 1955.

 After the coming into operation of any of the plans in any area no development shall
be undertaken or carried out in that area unless such development is also in
accordance with such plans according to section 14.

Power of development of Nazul Lands

According to section 22, of the Delhi Development Authority Act 1957

(1) If the Central Government place at the DDA’s disposal, all or any developed and
undeveloped lands in Delhi vested in the Union known as "nazul lands" by way of a
notification in the official gazette to this effect, then the DDA shall carry out development
according to the provisions of the Act.

(2) No development of any nazul land shall be undertaken or carried out except by, or
under the control and supervision of, the Authority after such land has been placed at the
disposal of the Authority under sub-section (1).

Power to order of demolition of building

Under section 30 of the DDA Act, where any development is being carried or has been
carried out in contravention of the master plan or zonal development plan or without the
permission or in contravention of any conditions subject to which such permission has been
granted by any officer of the Authority empowered by it, may, in addition to any prosecution
that may be initiated, make an order directing that such development shall be removed by
demolition, filling or otherwise by the person at whose instance the development was carried
out within such time and because of reasons as may have been specified in the order. Upon
his failure to comply with the order, the officer of the Authority may remove the development
and the expenses shall be recovered from the person as arrears of land revenue provided that
no such order shall be made unless the owner or the person has been given a reasonable
opportunity to show cause why such order should not be made.

Power to stop development and seal such area

Under section 31 if any development is being carried out in contravention of the master plan
or zonal development plans or without the permission of the requisite authority or in
contravention of any condition subject to which such permission was granted - in relation to a
development area, the Authority or any officer of the Authority empowered by it in this
behalf, in relation to any other area within the local limits of a local authority, the competent
authority thereof, shall discontinue the same.

If development is not discontinued, the Authority shall cause removal of the person by whom
the development has been commenced as well as his workmen from the place of development
or seize any construction material, tool, machinery, or other things used in such development.

Section 31 – A further provides for the power to seal unauthorized development at any time,
before or after making an order for the removal or discontinuance of any development under
section 30 or section 31. Once sealed no person shall remove such seal except under an order
made by the Authority or under an order of the Appellate Tribunal or the Lieutenant
Governor of the National Capital Territory of Delhi.

Land Pooling Policy in NCT Delhi

The DDA has brought about a major change in land policy by approving the land pooling
policy in 2014 in the Master Plan 2021. According to this policy, landowners shall surrender
their lands into a central pool and become stakeholders in the development proposed on their
land. The landowner would then get 40-60 per cent of the total land surrendered as
developable land. The dispute over undervaluation of land for acquisition would be removed,
and the process will be fair to every landowner, irrespective of the size of their holding. The
40-60 per cent of the land that DDA would retain would be utilized to create infrastructure as
well as to monetize it for specific purposes.3

3. HARYANA URBAN DEVELOPMENT AUTHORITY (HUDA)

Now known as Haryana Shehri Vikas Pradhikaran, HUDA is the urban planning agency of
the state of Haryana. It was established in the year 1977. The Chief Minister of Haryana is
the Chairman of the Authority. Its headquarters are located in Panchkula, Haryana.
It was preceded by Urban Estates Department established in the year 1962, which due to
severe drawbacks such as lack of financial autonomy, and inexpediency proved to be largely
an incompetent body to cater to the growing infrastructural needs.

3.1 CONSTITUTION

As per section 4 of the HUDA Act, the Authority consists of a Chairman, a Vice Chairman, a
Chief Administrator and such other members appointed under a notification issued, provided
that the number of non- official members shall not at any time exceed three.

Under section 8, of the Act the Authority may appoint committees for its assistance in the
efficient discharge of its functions.
The Chief Administrator at the Head Quarters is overall incharge and responsible for
discharging functions of the Authority. The Chief Administrator is assisted by 5 zonal
administrators, posted at Faridabad, Gurgaon, Hisar, Panchkula and Rohtak.

3.2 FUNCTIONS AND POWERS

Under section 13, objects and functions of Pradhikaran have been provided which are to
promote and secure development of all or any of the areas comprised in an urban area and for
such purpose, the Pradhikaran has the power to acquire by way of purchase, transfer,
exchange or gift, hold, manage, plan, develop and mortgage or otherwise dispose of land and
other property, to carry out by itself or through any agency on its behalf, building,
engineering, mining and other operations, to execute works in connection with supply of
water, treatment and disposal of sewage, sullage and storm water, control of pollution and
any other services and amenities and generally to do anything, with the prior approval, or on
direction, of the State Government, for carrying out the purposes of this Act.4

3
Bedi JS, Urbanisation, Development and Housing Requirements in the National Capital Region, 2014
4
Section 13, Haryana Urban Development Authority Act, 1977
The functions of the Haryana Shehri Vikas Pradhikaran are –
 To promote and secure development of urban areas in a systematic manner, with the
power to sell and acquire and dispose off property.
 Use land acquired for residential, industrial, recreational and commercial purpose.
 To make available developed land to Haryana Housing Board and other bodies for
providing houses to economically weaker sections of the society
 To undertake building works

Moreover the Pradhikaran exercises various other powers conferred to it under the Haryana
Urban Development Authority Act. These include the power to maintain its own funds and
submission of periodical reports, powers to formulate Master Plan for the development area
under section 33 for the purposes of development and indicate the manner in which the land
is proposed to be utilized.

Power to make entry (under section 33) –

The Pradhikaran may authorise any person, with or without assistants or workmen to enter
any land or building other than those owned by the Central Government for making any
enquiry, inspection or survey of such land or building, examination of construction works
including the course of sewers and drains; digging or boring into the sub-soil, exercising a
check as to boundaries within which work is to be carried out; making levels, boundaries and
lines by placing marks and cutting trenches.

Power of development of Nazul Lands -

According to section 86, of the Haryana Urban Development Authority Act,
If the State Government places at the HUDA’s disposal, all or any developed and
undeveloped lands known as "nazul lands" by way of a notification in the official gazette to
this effect, then the HUDA shall carry out development according to the provisions of the
Act.
No development of any nazul land shall be undertaken or carried out except by, or under the
control and supervision of, the Authority after such land has been placed at the disposal of
the Authority.

Power to order of demolition of building-

Under section 88 of the HUDA Act, where any development is being carried or has been
carried out in contravention of the master plan or zonal development plan or without the
permission or in contravention of any conditions subject to which such permission has been
granted by any officer of the Authority empowered by it, may, in addition to any prosecution
that may be initiated, make an order directing that such development shall be removed by
demolition, filling or otherwise by the person at whose instance the development was carried
out within such time and because of reasons as may have been specified in the order. Upon
his failure to comply with the order, the officer of the Authority may remove the development
and the expenses shall be recovered from the person as arrears of land revenue provided that
no such order shall be made unless the owner or the person has been given a reasonable
opportunity to show cause why such order should not be made.

Power to stop development and seal such area -

Under section 89 if any development is being carried out in contravention of the master plan
or zonal development plans or without the permission of the requisite authority or in
contravention of any condition subject to which such permission was granted - in relation to a
development area, the Authority or any officer of the Authority empowered by it in this
behalf, in relation to any other area within the local limits of a local authority, the competent
authority thereof, shall discontinue the same.

4. NEW OKHLA INDUSTRIAL DEVELOPMENT AUTHORITY (NOIDA)

Set up in as part of the urbanization thrust during the controversial emergency period (1975-
77), the city was created under the Uttar Pradesh Industrial area Development Act, 1976
under the initiatives of Sanjay Gandhi.

The Uttar Pradesh State Government has constituted an Authority , however the name New
Okhla Industrial Development Authority (NOIDA) has not been expressly provided.

4.1 CONSTITUTION

The Constitution of the Authority is defined under section 3 (3) of Uttar Pradesh
Industrial area Development Act, 1976:–
(a) The Secretary to the Government, Uttar Pradesh, Member Industries Department
or his Nominee not below Chairman the rank of Joint Secretary-ex-official.
(b) The Secretary to the Government, Uttar Pradesh, Member Public works
Department or his nominee not below the rank of Joint Secretary ex-official.
(c) The Secretary to the Government, Uttar Pradesh, Local Member Self-
Government or his nominee not below the rank of joint Secretary-ex official.
(d) The Secretary to the Government, Uttar Pradesh, Finance Member
Department or his nominee not below the rank of Joint Secretary-ex official.
(e) The Managing Director, U.P. State Industrial Development Member
Corporation-ex official.
(f) Five members to be nominated by the State Government Member by notification.
(g) Chief Executive Officer. Member
Secretary
It is pertinent to note that, no proceedings of the Authority shall be invalid by
reason of the existence of any vacancy in or defect in the constitution thereof.

4.2 FUNCTIONS AND POWERS

The Act has an overriding effect as provided under section 17, ie. if any area is declared as an
industrial development area under this Act then the same shall be excluded from the master
plan or zonal development plan of other Acts.

Under section 6 of the Act, the functions of the authority have been highlighted as follows:
 Preparation of a plan for the development of the industrial development area;
 Demarcation and development of sites for industrial, commercial and residential
purpose according to the plan;
 Provision of infrastructure and amenities for industrial, commercial and residential
purposes;
 to allocate and transfer either by way of sale or lease or otherwise plots of land for
industrial, commercial or residential purposes;
 Regulation of the erection of buildings and setting up of industries

Power to the Authority in respect of transfer of land

The authority can sell, lease or otherwise transfer any land or building belonging to the
Authority within the industrial development area for development of infrastructural facilities,
housing and other public institutions subject to terms and conditions as may deem fit.

Power to issue directions in respect of creation of building

Under section 8 of the Act, the Authority may give suitable directions for planning and
development of the industrial development area, and the authority may issue such direction as
it may consider necessary regarding-
 architectural features of the elevation/ height of any building
 the alignment of buildings
 imposition of restrictions regarding maintenance of open spaces in and around
buildings ;
 the number of residential buildings which can be constructed at a particular sight ;
 Regulations regarding erections of shops, workshops, warehouses, factories or
buildings;
 maintenance of amenities such as proper drainage of waste water, disposal of
industrial waste, and disposal of town refuse.

Power to require proper maintenance of site or building

Where it appears to the Authority that the condition of any site or building is such that it shall
affect the interests of the general public or shall affect the proper implementation of master
plans in an industrial development area, then the Authority shall issue a notice to the
occupier/transferee of such building to take necessary steps to remove the obstacles, and upon
his failure to do so, Authority shall itself take steps to maintain it, and costs shall be borne by
the occupier.

Power to maintain Funds of the Authority–

The Authority has power to maintain and regulate its own funds and such fund shall be
applied in meeting the expenses incurred by the Authority in the administration of this Act
for no other purposes.

5. CRITICISM OF URBAN LAND DEVELOPEMNT INSTITUTIONS IN NCR

5
Environment Impact of Construction Activities

Rampant as well as poorly planned construction activities coupled with illegal

encroachments have made certain areas of Delhi -NCR vulnerable to flash floods. This
has resulted in deterioration of the Hindon-Yamuna basin. Not just Delhi but large parts
of Noida are exposed to not just flash floods, but various flood hazardsas well such as
inundation and erosion. Additionally, due to poorly planned sanitation and sewage
facilities, Noida can store liquid waste for a limited period, before having to dispose of
these into the Yamuna or Hindon rivers. This further results water pollution of fresh water
bodies.
A similar story repeats itself with respect to the Sanjay Lake, which was developed as a
rainwater lake by the DDA and today it has turned into a cesspool- a health hazard for
nearby residents owing to the negligence on part of the DDA. The green cover has also
substantially declined.

5
Bedi JS, Urbanisation, Development and Housing Requirements in the National Capital Region, 2014
 Lack of Financial Accounting

The plans inadequately address the fiscal aspect of the development. Due to lack of
proper accounts, it becomes easier for corruption and siphoning off of the funds.
With respect to the Master Plan for Delhi: 2021, no estimates were provided for the
additional expected cost regarding the additional demands which may crop up and how
they will be borne. There is also no accounting for what kind of rents and revenues the
state departments are expected to earn. Neither are there any guidelines as to the
channelisation and distribution of the same among the different civic and planning
agencies.

Lack of Slum Rehabilitation Policy

The Standing Committee on Urban Development’s 8th Report noted that DDA had taken
over possession of upto 69,890 acres by March 2005. The Committee expressed concern
about the 1475.85 acres of DDA lands under encroachment by JJ clusters.
There exists no clear policy on slum resettlement in the 2021 plan despite the figures
revealing that it is a chronic and growing problem. Resettlement of the inhabitants of
these JJ clusters remains a factor which often goes unchecked as the impoverished voices
remain unheard.

6. RECOMMENDATIONS

Beneficiary Assessment (BA)

BA is a systematic investigation of the opinions and perspectives of beneficiaries and

other stakeholders to ensure that their concerns are heard and incorporated into project
and policy formulation.6 BA's general purposes are to
(a) Undertake systematic listening to in order to inculcate the plausible concerns of the
poor and other beneficiaries, thereby highlighting constraints to beneficiary participation
and
(b) Obtain feedback on development intervention.

Public Private Partnerships

The failure of public institutions to provide efficient governance call for the need of
exploring other options such as public- private partnerships, non-government
organisations such as non-profits, cooperative societies or commercial organisation.
When there exists competition in the market to acquire land, the position of those who
lose their lands and are often subjected to insufficient compensation will be ameliorated.
These partnerships offer a space for deliberation, collaboration, co-working and
networking of different stakeholders-public and private.These autonomous institutions
need to be nurtured as complimentary institutions working towards better provision of
services to citizens 7

6
http://web.worldbank.org/archive/website01028/WEB/IMAGES/PARTICIP.PDF
7
Rajul Jain ,Delhi Development Plan: Citizen Appraisal
 Slum Area Management

The Slum Networking Project was launched in 1995 by Ahmedabad Municipal

Corporation (AMC), in partnership with SAATH and Arvind Mills. The Slum
Networking Project (SNP), Ahmedabad is an innovative approach for the improvement of
slums. The residents contribute a part of the total cost of infrastructure, while the AMC
provides hardcore physical infrastructure. The NGO is responsible for community
organization and mobilization. The SNP provides basic infrastructure in an affordable and
sustainable way to the slums. The project motivates and facilitates the target
communities, local NGOs and the private sector to work together in a unique partnership.
The purpose behind Slum Networking Programme is to provide the equality in quality of
services provided to a mainstream citizen and a slum dweller. This is an ideal example of
partnership between the urban local bodies and civil societies. This example can be
replicated in Delhi- NCR for the development of commercial spaces and thus solves the
problem of inadequate infrastructure.

Training and Accounting Reforms

It is often observed that while plans are good in theory, they fail to materialize. The
reason could possibly be ascribed to inefficiency and lack of foresight on the part of the
urban development institutions. So it is suggested that some training sessions should be
conducted for the officials to know the ground reality and possible hurdles they may face
as well as to enhance their performance. Accounting reforms are also suggested to ensure
better management and usage of funds.8

7. CONCLUSION

Urban Land Institutions face various challenges in the nature of over population, lack
of poverty management, unplanned, illegal constructions and prolonged procedures. It
also suffers from various maladies of its own, such as corruption and inefficiency, and
red tapism, and thus improper allocation of funds, along with resistance to newer
methods of urban planning and development.

In order to further the constitutional mandate of Article 39- to provide for distribution
of material resources to serve the common good, and produce a conducive and healthy
environment, it becomes necessary to cater to the needs of the public while sustaining
the environment.
This calls for an over haulage of the legislative framework and state planning statutes
in particular, so as to cater to needs in a time bound and efficient manner, before the
development becomes redundant.

8
Ibid