The origin
When technology had almost no role to play in infrastructure planning, revenue officials used to use a red thread to demarcate the non-agricultural in villages from the agricultural land. On officials maps, too, these areas where depicted using a red line. The non-agricultural land thus demarcated was meant to be used by villagers to support their life system. Such land was often used by the villagers to keep livestock and store farm produces. Since the red thread was a key part of it, this land would be called Lal Dora — the term has been first used in 1908, and has been popular since. It would be absolutely wrong to say that it is only the term that has been popular; Lal Dora land, over which development and civic bodies have no jurisdiction, are also quite popular among property seekers looking for big-independent homes that are also affordable in the national capital.
Lal Dora land was exempted from the building bye laws and construction norms and related regulations under the Delhi Municipal Act, 1963.
The expansion
Despite the fact that land demarcated as Lal Dora could only be sold by a farmer to a villager, such land parcels have been the chosen points among investors to build home. Little wonder that illegal constructions have flourished on Lal Dora land since building bye-laws were not applicable. In fact, some of the well-established residential and commercials points in the national capital are parts of Lal Dora setup. Shahpur Jat and Chhatarpur in south, Uttam Nagar and Mahavir Enclave in west, parts of Narela and Rohini in north Delhi could be cited as the best examples of such a setup.
To keep the illegal construction in check, the government later made it mandatory for buyers to have some permission in place before starting development. If you buy a land parcel which is part of Lal Dora, today, for instance, you need to take permission from the land and revenue department, apart from taking permission from the municipal body and other civic agencies.
Risks involved
Considering such a land does not fall under the jurisdiction of municipal bodies, these areas are often under-developed. (Earlier, it was also difficult to get water, electricity of sewage connections for such properties.)
Selling such properties is also difficult in the absence of clear land titles. This is also a reason why banks do not fund such properties. In case you decide to invest in a property situated on a Lal Dora land, you will have to fully depend on your own arrangements as far as the money is concerned. Unclear titles also make such properties an easy target of demolition. This is why experts often tell buyers to stay away some such properties even if they seem tempting.
The change, for better
If you were told a property falling under Lal Dora cannot be registered, you have been informed wrongly. Such a property could be registered with the tehsil office. Since municipal bodies have no jurisdiction over Lal Dora land, they have no power to register properties constructed here. With the government’s intervention, it is also now possible to get water, power and sewage connections for such properties.
The Delhi government issues Lal Dora certificates to owners of such land, establishing their ownership. This certificate could be used to apply for all the utilities.
Why popularity of Lal Dora land does not die down
Money is the single-biggest factor behind that. To buy a 2BHK apartment in a housing society in an average locality in Delhi, for example, a buyer must spend as much as Rs 75 lakh. In the same amount, a buyer can buy an independent house constructed on a Lal Dora land. Rates of such properties have gone down further after demonetisation. (People often used their accounted money to invest in such properties. Since that is no option anymore, prices have moderated.) You could even buy a 1BHK flat in a budget of Rs 12 lakh or so.
A look at prevalent rates show there could be a difference of 100 per cent in prices when you compare a Lal Dora property with an average property in Delhi.
A buyer saves on other expenses, too. For instance, you do not have to pay any house tax if the unit is built on less than 200 square metre of plot.