Govt considering waiving of conversion fee

NEW DELHI: Flat owners in co-operative housing societies, holding power of attorney, should wait for a month before joining the conversion bandwagon. As of now, they are at a disadvantage as compared to society members since DDA charges an additional 33% on conversion fee.
A panel set to review the provisions of the Delhi Cooperatives Act is likely to come out with a strong recommendation that this discrimination be removed.
The panel is being headed by the Delhi Cooperative Housing Finance Corporation Limited (DCHFCL) chairman Deep Chand Sharma and is examining the Act after former L-G voiced concerns over some provisions.
"We are considering certain amendments. The final recommendations should be ready soon," Sharma told Times City.
Delhi government sources said that one of the major changes being proposed is the removal of the mandatory clause for conversion of property from leasehold to freehold. The Act in its present form, entails that power of attorney holders get the property converted to freehold within 360 days or face upto 7 years imprisonment and fine up to Rs 50,000.
In a meeting held recently, committee members are said to have discussed the "disparity in the conversion charges fixed by the DDA for societies in north Delhi and that in east Delhi whereas the cost of the flats is almost the same".
In Rohini, for example, the amount required for a power of attorney holder of a MIG flat for conversion of flats and occupancy rights in a society is as high as Rs 90,000. Something which committee members are said to have admitted as "exorbitant".
Sources said that Delhi government had been forced to agree to the provision for high penalty from certain ministries to expedite the passing of the Act. "It is likely that all such penal provisions will be removed. However, certain changes regarding the powers of managing committees shall remain," sources added.
The central idea behind this move, sources added, was that power of attorney holders -- "lifelines" for the cooperative system, should not be troubled anymore since members were increasingly becoming extinct.
The panel is likely to recommend that power of attorney holders be given deemed status of a member of the society and should be treated at par with other members for payment of conversion charges and the time limit set for getting the flat freehold.