The SC order of increase in the size of dwelling units: A bonanza for Delhiites

April 5, 2008	(Be the first to rate this story!)  Loading ...
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The recent judgment of the Supreme Court permitting the construction of a third floor in the national capital is a bonanza for citizens of Delhi. It will enable the residents to use the entire permissible construction area under the new Master Plan 2021 (MPD-2021). However, the present judgment is conditional to the final one on the same issue. While the court allowed the construction of third floor subject to the condition that it should meet the floor area ratio (FAR) norms outlined in the MPD-2021, it has restricted the number of dwelling units that can be constructed on a given plot-size. Consultants feel this will limit the pressure on the existing city infrastructure to an extent.

The court’s decision has resulted in a sudden escalation of the price of plotted development in the city. According to one estimate, the land rates for plot sizes up to 250 sq meter have gone up by around 15% to 20%, post judgment. Even the price of large properties has gone up by around 10%. As shown in the chart, the permission for construction of the third floor has released huge construction area in the city. The owner of a plot size of up to 250 sq meter is benefited the most. Now, they can construct 30% to 33% extra. Earlier, as the third floor was not allowed and ground coverage area was restricted to 90% and 75%, the owner of plot of up to size of 250 sq meter could not utilize the entire area allowed for construction on the plot.

Now, with the third floor being okayed, the owner of the plot up to the size of 100 sq meter can make use of 30% extra construction area. The benefit further goes up to 33% for owners of plot sizes between 100 sq meter and 250 sq meter. Take for example, on a plot of 100 sq meter, as per MPD-2021, a FAR of 350% of plot area is allowed. That means, one can construct 350 sq meter on a 100 sq meter plot. But, at the same time, the ground coverage area has been limited to 90%. Which means, the owner could cover only 90 sq meter on a 100 sq meter plot. But, as he was allowed to construct only ground plus two floors, he could construct only 270 sq meter (90 sq meter on each floor). That means, he cannot utilize the 350 sq meter construction rights on his plot of 100 sq meter.

But now, as the court has allowed him to construct three floors, he can easily use the entire rights for the construction of 350 sq meter. In fact, on the top floor, he can only construct on 80 sq meter. A similar problem of not utilizing the entire constructed area, allowed under the master plan, was being faced by property owners of plot sizes up to 250 sq meter. On a 250 sq meter plot, the permissible area for construction is 750 sq meter. But, as the permitted ground coverage area on 250 sq meter plot is 75%, the owner can cover only up to 187.5 sq meter. In the three floors that were allowed before the judgment, one could cover only 562.50 sq meter. So, the owner had to forego 187.50 sq meter, which is the constructed area of one floor. But now, with the permission of third floor, he can use the entire area, which is allowed to be constructed on a 250 sq meter plot.

However, the benefit on the utilization front of FAR on a large plot size is not that much. In fact, above any 250 sq meter plot, as the FAR has been reduced from 300% to 225% and further to 120%, the entire construction rights could be exhausted in the construction of ground plus two floors. Consider a plot of 1,000 sq meter. The FAR for 1,000 sq meter plot is 150%. That means, 1,500 sq meter area can be constructed on the plot. The ground coverage area is 50%. Therefore, he can cover 500 sq meter. In a building of ground plus two floors, the owner can construct 1,500 sq meter. But now, as the third floor has also been allowed, he can increase the size of the lawn at the ground level itself, or he can reduce the size of first and second floors to accommodate the third floor in the given FAR.

In fact, on the construction of number of dwelling units also, the smaller plot size property remained unaffected. As per the MPD, one could construct three units on the plot size up to 50 sq meters and four units on plot of 50 sq meter to 250 sq meter. The Supreme Court also left the dwelling units to be constructed on plots up to 250 sq meter unchanged. However, the number of dwelling units which can be constructed on bigger plot sizes has been reduced by the apex court. As per the MPD-2021, the number of dwelling units that can be constructed on plot size between 250 sq meter and 500 sq meter was 6. The SC has capped it at 5. Similarly, the number of units allowed on plot size of 500 sq meter and 1000 sq meter as per MPD-2021 was 9. This has been brought down to 7 by the Supreme Court.

Even on the bigger plot sizes, above 1,500 sq meter, where under MPD 2021, the number of dwelling units allowed was 12, the apex court has capped it at 10. In fact, it has lowered the number of units allowed under MPD-2001 as per July 1998 notification on plot size of 2,250 sq ft and above from 12 to 10. Under MPD-2021, the number of units allowed on such a large plot was increased to 15. Experts welcomed the court’s decision, as it will lower the load on city infrastructure. However, it will release more area for construction. That means, the size of the dwelling units will increase following the judgment of the court.

News Published Under:   Real Estate India, Delhi |

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