People's Democracy

Delhi: Birth Pangs Of Deregulation

S Varma

ON September 20, 2006 thousands of people took to the streets in Delhi, protesting against the sealing of commercial premises by the Municipal Corporation of Delhi (MCD) at the behest of the Supreme Court. 4 persons were killed in police firing and dozens were injured in pitched battles at some points, while in over two dozen places protestors blocked traffic. The situation calmed down after the union government hastily assembled a group of ministers, assured that it would try to persuade the Court to follow the new law and directed the MCD to stop the drive till September 25, the next date of hearing. The government came prepared with a stronger argument, stating that now that the law has been changed, over 2000 roads with markets no longer remained unauthorised. The Court postponed its decision to September 28. However, the monitoring committee set up by the Court recommended that 14 types of shops (like grocers, barbers etc.) may be allowed in residential colonies provided they use only 20 sq. m. space.

For over a decade Delhi has periodically witnessed similar events as a Court driven campaign for closing down ‘illegal’ industrial or commercial activities, clearing land occupied in an ‘unauthorised’ manner and penalising ‘violations’ in building laws has continued. As a consequence, thousands have lost their jobs in industrial units that were ‘closed’ down, jhuggi-jhompri clusters have been uprooted and residents shunted to the far-flung periphery, shops and other commercial establishments have been closed down, rickshaws are being eliminated, street vendors and hawkers prohibited, and diverse service providers penalised. Most of these measures have been initiated by the Courts with reference to the master plan, violations of which are sought to be thus rectified. In addition, pollution, unsustainable growth of population and traffic congestion have also been quoted as motivating factors. 

Master Plan

Land in Delhi is the responsibility of the central government’s Ministry of Urban Development, acting through the Delhi Development Authority (DDA). It has periodically come out with master plans, which stipulate how land can be used for a variety of human activities – residential, commercial, recreational, industrial, etc. Due to erroneous premises, an obsession with restricting population growth, mismanagement and craven corruption, the master plan has largely failed in almost all aspects. In reality, it has been used by political leaders of Congress and BJP, the bureaucracy and the builders to mint money. No ground surveys were done before preparing the master plan (except in 1962); out of 15, only 6 zonal plans were developed; none of the ward and local area plans were formulated; no consultation with elected representatives or the people was held. 

The last master plan was notified for the period 1991-2001. 5 years have passed since its period ended but the new master plan has not yet been passed. A draft has been prepared by the DDA but under the fast changing circumstances created by the Courts as also political exigencies, it keeps getting put on the back burner. The draft itself is an unashamed capitulation to the votaries of ‘market forces’ and globalisation. It calls for freeing up the land market by withdrawing the DDA’s hold over it, allowing private builders and developers to do everything from in situ redevelopment of slum clusters to big commercial complexes. It was prepared, as usual, with only a nominal consultation with the people. 

What is Violation?

Going by the text of master plans and related government regulations, 70-80 per cent of all structures in Delhi are violative. There are 1641 unauthorised colonies inhabited by about 35 lakh people; 1200 jhuggi-jhompri clusters inhabited by 30 lakh people; and 60 resettlement colonies inhabited by 15 lakh people. Thus more than 55 per cent of Delhi’s population is residing in ‘colonies other than regular ones’. There are also thousands of residents in authorised colonies who have built beyond the permissible limits and are thus in violation. 

The other type of violation is that of land use. This means use of residence (part or full) for various other uses, mainly, commercial activity. This includes not just shops and offices, but also nursing homes, schools, banks, etc. In Delhi only 1 lakh out of total 5 lakh shops and 54 of the 584 registered nursing homes are on authorised premises. 

While there is no denying that there was deep complicity between political bigwigs, the bureaucracy and real estate mafia in allowing these violations, the inescapable truth is that the government completely failed to provide proper housing and space for commercial activities, forcing people to live in abysmal ‘unauthorised’ conditions, and earn a living through use of space designated for some other use. The DDA was supposed to provide 20 lakh dwelling units, but it has actually delivered 10 lakhs only. It has developed only 16 per cent of the total commercial space targeted for development. As the city has expanded, and as the purchasing power of a section of its residents increased, the demand for commercial spaces has also increased. Over 80 per cent of the Gross State Domestic Product of Delhi derives from the tertiary sector which is offices, shops, institutions etc. Nearly 80 per cent of the employment is also in this sector. This burgeoning sector has not been accommodated in DDA allotted confirmed plots. It has naturally moved into residential colonies. Hence there is a case for providing more space for commercial and other non-industrial establishments since they provide services and employment. However, designated commercial space in the city is currently in the process of being handed over to MNCs, malls and big developers for up-market uses. It is no longer available for diverse small and medium sized establishments or retail outlets. Had this creeping privatisation not been adopted by DDA, a large amount of space would have been available for those who are now sheltering in residential colonies. The bulk of Delhi’s industries are functioning in ‘non-conforming’ areas. After the Court’s orders in the nineties closing down ‘polluting’ and non-conforming industries, a large number of small industrial units have shifted into low-end colonies including resettlement and unauthorised colonies.

It is in this background that recent events need to be viewed. Since February 2006, the Court turned its attention to violations of prescribed land use and building norms. Local authorities were asked to identify all premises where ‘non-conforming’ use was taking place, i.e. use that did not conform to stipulation. Subsequently, the MCD was asked to rectify the situation by stopping the violative usage. Since lakhs of people were going to be affected, there was an uproar. Following this, all violators were directed to file sworn statements that they would end the non-conforming use by September 15. The government set up a committee headed by Tejinder Khanna (former LG of Delhi) in February 2006 to look into the violations and suggest measures to overcome the crisis. It had representatives from both BJP and Congress apart from urban planners and others. Meanwhile, under pressure from various trade bodies and political parties, the government passed a special law in May 2006 imposing a moratorium on any action to seal properties or otherwise continue with this drive. However, the Supreme Court ridiculed the enacted law and directed the MCD to continue. The government failed to stand up and defend a law passed by the parliament itself. 

Mixed Land Use

The Khanna Committee submitted its report in June 2006. It suggested that the whole prevailing pattern of land use be changed by bringing in flexible or mixed land use, wherein there would be scope for having commercial spaces within residential colonies. Although in principle the concept is rational the Khanna Committee came up with a peculiar methodology for identifying the areas where mixed land use would be permitted. It used the house tax categorisation to declare that the 79 richest colonies (category A and B) should be completely free of commercial land use (except some professionals like doctors, engineers etc. operating from their own premises); that 295 colonies of categories C and D should have some scope of certain listed commercial activities, provided the residents’ welfare association agreed; and finally, categories E to G (1651 of Delhi’s residential colonies inhabited by lower middle class or working class sections) would have virtually free mixed land use. Thus, the rich were to be spared the ‘disturbance’ and congestion caused by having shops and banks etc. in their colonies while the poor would have to put up with them. 

Apart from this, the Khanna Committee also recommended various sweeping policy measures ranging from getting rid of unauthorised occupants of land (i.e. jhuggi clusters and unauthorised colonies), having a special enforcement force for preventing illegal construction, and a huge bureaucratic structure with town planners at the top to supervise all this. It clearly advocates the same policy as has been spelt out in the draft master plan of complete privatisation of land in Delhi.

The government homed in on the crucial recommendations relating to mixed land use because if they were to become law, most of the so called illegal shops would become legal. It conceived of a mechanism to implement this part of the Khanna Committee straight away by notifying that it proposed to amend the existing master plan 2001 by incorporating these changes. In quick succession, the public was notified through an advertisement, objections sought and processed in the stipulated 30 days and the final notification issued in July 2006. 

Subsequent events took a bizarre turn. When told by the government counsel that the law having been amended, the sealing drive could not be pursued further, the Supreme Court roundly scolded them for trying to circumvent its orders, and ordered that their previous orders be implemented. Government advocates meekly heard the Court and gave a statement that indeed they would comply! Thus, a situation has arisen in which a law passed by parliament is openly criticised by the Court but not struck down, and orders are issued on the basis of a legal notification that has been replaced. So much for the rule of law! 

However, the more important issue in this notification is that it adopts a blatantly discriminatory attitude towards the poor. The rich are the biggest consumers of both goods and services. If these are not allowed to function in their own colonies, they will naturally shift to adjacent lower category colonies. With the kind of wealth accumulated by the elite sections of Delhi, especially since globalisation of the economy, and with the extravagant consumerist lifestyle adopted by them, residential space in lower category colonies will soon be gobbled up by these commercial forces. This will drive out the more economically backward sections further down the rung, and ultimately into slums. An already existing shortage of 4 lakh dwelling units will be further exacerbated due to conversion to commercial use, growth of population and transfer of built up housing and plots to private developers. Load on utilities like water and electricity will increase in these colonies.

Globalisation Comes to Delhi

There is a crisis of non-residential as also of residential space in Delhi. Both are connected to each other and to a whole host of other factors. Hence, it is myopic to look at one aspect ignoring the other. This situation has arisen primarily because of the judiciary, which has been passing piecemeal orders. The executive arm then responds to judicial intervention in a similar manner. On the other hand, the master plan remains pending as do all the burning issues confronting the people of Delhi including housing shortage, displacement due to demolitions and crumbling physical/social infrastructure.

The general thrust of the judiciary, the state and union governments, various committees, as also of most planners is towards privatisation of land. With FDI in real estate being eased, many eyes are settled on the lucrative real estate market. Hence the demand for easing of urban land ceiling laws, doing away with acquisition and control powers of government, setting up of regulatory bodies run by sold out bureaucrats, etc. The judiciary has destroyed most industry in Delhi, passed orders that all land should be cleared of ‘encroachments’ i.e. jhuggi-jhompris etc., ordered demolition of ‘illegal’ structures and so on. The ministry is involved in dealing with these while generally agreeing with privatisation. The master plan itself is on these lines. Looming on the horizon are Commonwealth Games which promise to be a boom for property sharks and commerce, as also for builders. The expanding Metro also promises a boom. 

With the new master plan already delayed by five years and likelihood of further delay, and with the threat of complete abandonment of planned growth hanging over all this, piecemeal measures are not only not going to solve the core problems, but in fact are preparing the ground for complete deregulation of the land and property market. This will be a serious blow to equitable and just future for the city’s poorer sections. Private builders and colonisers will, on the other hand, get a bonanza which includes 22,000 hectares of potentially urbanisable land including 1100 ha of commercial space, over 8000 ha of existing commercial space lying vacant/undeveloped, and a substantial chunk of the 30130 ha land potentially available for social infrastructure like schools, medical facilities etc. The present imbroglio actually represents the birth pangs of a larger globalised dispensation of land privatisation and displacement of the poor (both from employment and housing). Hence it needs to be opposed both for its specificity and its general approach. 

For More Equitable Urban Planning

Alternatively, in order to defend the interests of working people in Delhi and rebuff its take over by metropolitan capital, the following needs to be demanded from the union government:

[a] In order to make available commercial space for the city’s needs, and in order to do away with onerous, obsolete and rigidly defined land-uses, a policy of mixed or flexible land use needs to be adopted which is suited to community needs of all sections, equitable and discouraging of wasteful consumerist lifestyles.

[b] Land/premises currently designated as residential may be used for non-residential purposes in all colonies based on the following principles:

m Use should not cause pollution or environmental stress of any variety

m It should be approved by the community through transparent and a priori laid down procedures

m It should comprise of listed categories which will vary according to right of way dimensions (i.e. small provision stores or daily needs service providers on smaller lanes/roads, bigger shops on larger roads etc.).

[c] Existing areas or roads with over 70 per cent non-residential use including industrial use to be declared conforming. Provision for infrastructure, parking etc. to be recovered from occupant/owners.

[d] Certain listed categories to function from commercial or business centres (local, community, district or city level) only.

[e] No permission to indiscriminately have establishments consuming more than defined level of water and electricity, and requiring more than defined number of parking spaces in residential colonies or designated commercial centres.

[f] Speedy preparation and notification of an alternative people-oriented master plan, end efforts towards privatisation, democratisation of DDA and setting up of institutional mechanisms for accountability based on participation of elected representatives from Assembly and local bodies are some of the key measures that should form the package.