1. Towards a Title Registration System in Delhi: Why and How?
Carol S. Rabenhorst
The Urban Institute
Washington, DC
World Bank Conference:
Challenges for Land Policy and Administration
February 14-15, 2008, Washington, D.C.

2. Introduction to Delhi Population: 14 million (3rd largest in India)
Size: 1483 sq km
Government authority and characteristics:
Not a state but the National Capital Territory (similar to Washington, DC)
Governed by 3 municipal corporations
Land and property issued managed by Delhi Development Authority (est. 1957)
9 districts and 27 sub-districts for document registration, including deeds

3. Current Tenure Characteristics in Delhi
Freehold land (Old Delhi; pre-1947 titles; more recent colonies; leasehold conversions)
Leasehold land (owned by development authorities)
Apartment – sale deed and use rights; chain of title remains with developer
Informal settlements – 10m+ people, over 70%
Types: squatters, relocation settlements, unauthorized colonies, rural and urban villages
All income levels
No title requested or obtained
No building permit requested or obtained
Risk of demolition
Nature of tenure constrains water and electricity supply and service

4. Current Land Administration System in Delhi
Registration of sale deed and leases compulsory but often ignored
No central registry for private urban land
Records of government-owned land kept by many separate agencies
Most land not surveyed
Deed registration system, in effect since 1908
Registers transactions and transfers (except inheritance)
Sale by power of attorney allows sales without registration, incentives to avoid fees and taxes
Records maintained manually by date of registration, not by owner or property ID; difficult to trace chain of ownership (newer registration are computerized in most districts)

5. Requirements for Deed or Lease Registration in Delhi
Document required to be registered (in duplicate)
Two Passport size photographs of both parties.
Two witnesses.
Proof of identification of each party and witnesses i.e. election Identity Card, Passport, identity Card issued by Govt. of India, Semi govt. and Autonomous bodies or identification by a Gazetted officer.
In case the property is/was under a lease from D.D.A., L&DO, M.C.D., Industries Department, Labour Department of Delhi Govt. etc., permission of lessor for registration of the document.
No objection Certificate under section 8 of Delhi Land (Restriction and Transfer) Act, 1972 from Tehsildar of the Sub Division of the District to the effect that the property is not under acquisition.
Income Tax clearance Certificate in prescribed proforma 34A, under section 230 of Income Tax Act, from concerned Income Tax Officer where the transaction exceeds Rs.5,00,000/-
Permission from the Appropriate Authority in the prescribed proforma 37 I, where the transaction exceeds Rs.50,00,000/- under the provisions contained in section 269 of Income Tax Act, 1961.

6. Cost to Transfer Title as a Percentage of Value of Property Source: UN High Commission on Legal Empowerment of the Poor, September 2005

7. Consequences of Current Registration System in Delhi
Title and possessory rights cannot easily be verified
The property market is inefficient
Property disputes are common
Non-registration and undervaluation decreases government revenues from stamp duties (5%), transfer tax (3%) and property taxes
No coordination between authorities
Most households have no access to formal housing finance
Mortgages made by deposit of title deed with lender, often not registered → increased credit risk
Financial sector growth is lagging
China (pop. 1.3B) : $356b in mortgage debt (from $0 in 9 years) ; 11% of GDP
India (pop 1.1B): $18b mortgage debt, ≤2% GDP

8. Private credit as a share of GDP Source: Doing Business Database (2004) World Bank

9. Recommendations for Delhi
Change to title registration system
May require amendments or eventually a new law
Examples of recent changeover:
Hong Kong – beginning 2004
Ghana – beginning 2003
Scotland – beginning 1979
Reorganize institutional structure under Government of Delhi
Undertake cadastral survey and first registration
Guarantee of accuracy
Open to public
Computerize old records
Models in India:
Bhoomi project in Karnataka (WB)
20M rural records computerized ; urban records now underway
Time to register 45 → 6 days.
Maharashtra
Chandigarh
Lower registration fees
Consider other options to improve tenure, at least in short run

10. Principles of Title Registration Systems to be Adopted
Interests transfer upon registration
Except for statutory reservations, no validity without registration even with notice
Priority determined by time of registration Government operated, financed with fees and government funding
Establish guarantee by state
Require information sufficient to identify property and other interests, establish chain of title
Public access

11. Roadmap for Registration Reform
Assess the legal and institutional environment
Prepare functional specifications for agency
Design procedures for systematic or first registration
Fine tune the legal framework
Design efficient registration procedures
Procure survey and mapping information
Assign unique parcel identifiers

12. Roadmap for Registration Reform, cont.
Procure information systems
Install system architecture and equipment
Implement public information program
Purchase and upgrade office facilities
Train personnel
Plan for maintenance and upgrading

13. Cost and Time Commitment
Range of cost: $8 million to $195 million
Average cost $15-20 million
Time: 5 – 10 years, sometimes 20-25
Average allocation of costs:

14. Cost Recovery and Fiscal Benefits
Proven increase in revenues
Transfer taxes
Property taxes
Stamp duties
Capital gains taxes
Costs not recovered for first registration
Willingness to register and pay fees based on perceived value and credibility of the system
Relation of lower costs to higher revenues

15. Cutting duties increases revenue: example of Maharashtra, India

16. Summary of Findings
Re-engineering a titling system takes a long time and a lot of money
A good titling system is required for achieving:
Best value from land
A robust real estate market
An efficient mortgage market with improved access to credit
Increased investment in housing and small businesses
Keys to success:
Getting the institutional issues right
Maintaining political commitment to policy reform
Keeping the system as simple and efficient as possible

17. Results
Government of Delhi is currently considering recommendations for legal and institutional reform, including change to title registration