Task Force on Delhi Real Estate Recommends Major Reduction in Amalgamation Fees

New Delhi, June 12, 2025: The joint government-industry task force on real estate reforms has recommended substantially reducing the amalgamation charges for integrated commercial schemes in Delhi to simplify regulations and boost investor confidence.

In a comprehensive report outlining key reforms for the sector in the city, the task force addressed the redevelopment of group housing, DDA housing and cooperative societies.

A fast-track approval process for land amalgamation with layouts to be approved by the DDA’s screening committee has also been recommended. Amalgamation charges will be collected during approval, streamlining the process through a single-window system.

The task force has recommended reducing the amalgamation charges from 10 per cent of the circle rate to just 1 per cent.

The report has recommended redevelopment by default, especially for buildings more than 50 years old or those failing structural audits and a relaxation in the area norms that mandate a minimum of four hectares for group housing schemes to qualify for redevelopment.

The task force also recommended other bold measures to enhance the ease of doing business, encourage sustainable development and promote faster project approval, minister Manjinder Singh Sirsa said adding that the reforms will create a more transparent, efficient and investor-friendly environment.

According to the report, rules should be amended to allow additional members in cooperative societies if necessary. The task force requested the DDA to frame charges related to common areas. Redevelopment should be permitted with 75 per cent consent from stakeholders to ease the process.

Another key recommendation was that the layout plan approval by MCD should not be mandatory for single plots unless there is a change in land usage.

The report also suggested granting additional ground coverage ranging from one to four per cent for green building projects along with up to five per cent extra floor area ratio for certified green buildings. The green building certification by Centre-recognised agencies will be mandatory for projects with built-up areas of more than 2,000 square metres.

The task force also recommended a revision of the multiplication factor applied to circle rates to one for industrial properties and 1.5 for commercial ones while determining the reserve price for DDA auctions.

For greater transparency and fairness to property transactions, the report suggested addressing the disparity between market and circle rates and said that the same factors should be applied for land valuation purposes related to stamp duty payments.

The government is expected to review the recommendations before implementation.