Double Levy Issue: Why Real Estate Needs A Single-Window Clearance System

It was a breather for home buyers when the government allowed regularisation of 26 cooperative group housing societies constructed in Delhi's sub-city Dwarka, after finding that the possession was handed over without due clearances being granted.

So, the residents of these societies paid regularisation charges to the Delhi government's Registrar of Cooperative Society -- in the range of Rs 15,000 to Rs 25,000, depending on the size of their flats. However, these residents took to protest when the Delhi Development Authority (DDA) started demanding similar charges for the same purpose. Earlier, these residents had paid Rs 1,000 each to the authority. Protesting the double levy, people approached the Union Territory Lieutenant Governor, who, after scrutinising the matter, ruled in favour of the residents.

Why did this happen?

• This incident could be cited as a classic example of conflict of interests; both the bodies are authorised to collect regularisation charges. 

• This incident is also a case that shows the lack of communication among various government agencies. In fact, in its plea, DDA had argued that a government order had directed it to collect regularisation charges from the residents. Home buyers had to bear the brunt of a communication gap between DDA and the Registrar Office. 

The answer

Such incidents also show why there is a pressing need for the sector to have a single-window clearance system. Duplication of procedures and conflicting jurisdictions are among the factors that have been hitting the sector hard. The sector could see a revival if there is a singular authority to resolve local issues.