New Delhi: A high-level government panel has
said Delhi Development Authority, tasked with the land
development task in national capital, has become more like a
`Finance Company` and was earning huge money from investments.
The committee is believed to have suggested an immediate
constitution of a regulatory body for the housing sector to
take over the monitoring and oversight functions from DDA.
DDA`s income from investments constituted a significant
share of its total income and was even higher than its income
from housing sale and services, the committee has found.
The Committee, headed by former Finance Secretary Ashok
Chawla, was set up by the government for suggesting ways for
optimum allocation, pricing and utilisation of natural
resources including land.
"... if the total investments by DDA are considered, the
income from investments in deposits is more than the income
from sale/service of DDA houses and all these investments may
lead to a conclusion that DDA is more a `Finance Company` than
a land development authority!" the panel found.
DDA acts as a custodian of certain central government
land in the national capital and the land transferred to the
housing projects is sold to the public.
The amount realised through sale of is retained in the
books of DDA and there are rules that allow DDA to spend the
money on certain infrastructure projects.
The panel, however, found that such expenditures are much
less and large amount of funds are lying as deposits in banks.
"These funds can be more productively used in other
areas," the panel said.
Stating that DDA currently acts in multiple capacities of
a regulator, a housing board as also a builder, the panel said
that a regulatory oversight body was necessary to bring
transparency in the housing sector.
The panel also said that DDA should pay the central
government rent at market rates, on the similar lines that it
was being charged establishment and administrative expenses by
the land authority.