In short. Property in a notified unauthorised colony can be bought, and under the 2019 Act and PM-UDAY the occupant can get a conveyance deed or authorisation slip that gives registrable ownership. Before paying, check that the colony and plot are eligible, that the GPA chain is complete, that the land is not excluded, and that the construction can be regularised.
Roughly 1,731 unauthorised colonies in Delhi house a large share of the city's population. Property in them changes hands every day, mostly on GPA, agreement to sell, will and possession letters, because for years sale deeds could not be registered there. This post explains what a buyer actually acquires, what the law now offers, what changed in 2026, and the checks that separate a reasonable purchase from a bad one.
For how GPA sales work in general, see our post on GPA, agreement and will sales. For the full title check on any property, see title verification before buying property in Delhi NCR. For property disputes that reach court, see our page on civil and property cases in Delhi.
- Main law
- NCT of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Act 2019 and DDA regulations
- Scheme
- PM-UDAY: conveyance deed (private land) or authorisation slip (government land)
- 2026 changes
- Layout plan no longer needed for built property in 1,511 colonies; Delhi Revenue Department issues deeds
- Protection from punitive action
- Special Provisions Act 2011, extended to 31 December 2026
- Not covered
- Listed affluent colonies and excluded land such as forest, floodplain and right of way
- Before you buy
- Check eligibility, chain, land status, construction and disputes
What is an unauthorised colony, legally speaking?
An unauthorised colony is a settlement that came up on land, often agricultural land or government land, that was divided into plots and sold without an approved layout plan or the permissions needed under the Delhi Development Act and the master plan. Houses were built without sanctioned building plans. The government has identified these colonies over the years, and around 1,731 are recognised for the purposes of the 2019 Act and the PM-UDAY scheme.
An unauthorised colony is not the same as an urban village, a Lal Dora area, a regularised colony or a JJ cluster. Urban villages and Lal Dora land are old village settlements with their own rules. Regularised colonies went through an earlier regularisation and have approved layouts. JJ clusters are slums on public land, dealt with under rehabilitation policies. Buyers sometimes confuse these, and the risks are different for each.
The government has also listed a small number of affluent unauthorised colonies, 69 in the 2019 scheme, to which the PM-UDAY benefits do not apply. If the colony you are looking at is on that list, the ownership route described below is not available.
Can I legally buy property in an unauthorised colony?
Yes, you can buy whatever rights the seller has, and you will not commit an offence by doing so. The difficulty is that what the seller has is usually not registered ownership. For years, sub-registrars did not register sale deeds of property in unauthorised colonies, so buyers and sellers used a general power of attorney, an agreement to sell, a will, a possession letter and a receipt for the price. Each buyer passed the same set of documents on to the next.
In ordinary law, these documents do not transfer ownership. The Supreme Court held in Suraj Lamp and Industries v State of Haryana (2011) that title to immovable property passes only by a registered deed of conveyance. A buyer on GPA documents has possession and contractual rights against the seller, but not title that the world must respect.
The 2019 Act changed this for residents of notified unauthorised colonies. It recognises the rights of a person in possession on the basis of the last GPA, agreement to sell, will, possession letter and payment documents, and allows the government to confer ownership through a conveyance deed or authorisation slip. So a buyer who acquires a complete, genuine chain in an eligible colony has a clear route to registered ownership. A buyer with a broken or doubtful chain does not.
What does PM-UDAY actually give you?
PM-UDAY, the scheme under the 2019 Act, gives an eligible resident a registered document of ownership. Where the colony is on private land, the document is a conveyance deed. Where it is on government land, it is an authorisation slip. Either is registered with the sub-registrar, and once you have it, you can get mutation, sell by a registered sale deed, mortgage the property to a bank and pass it on by will or inheritance in the normal way.
To get it, the applicant applies online, the property is identified and its boundaries recorded, documents are verified and charges are paid. The charges are calculated as a percentage of the circle rate and depend on the plot area and whether the land is private or government land, with stamp duty and registration charges on the deed as the Act provides. Check the current charges on the portal, because they have been revised from time to time.
Progress under the original scheme was slow: by 2026, conveyance deeds or authorisation slips had been issued for only about 40,000 properties, out of many lakhs of eligible ones. The main obstacles were the requirement of an approved layout plan for the colony and gaps in applicants' documents.
What changed for unauthorised colonies in 2026?
In April 2026, the Union government announced an "as is where is" relaxation for 1,511 of the unauthorised colonies. For already constructed buildings in those colonies, an approved layout plan is no longer needed before a conveyance deed can be issued. The Delhi government's Revenue Department took over issuing the deeds from the DDA, with a stated target of about 45 days per deed, and from late April 2026 applications were integrated with an online system linked to the national document registration system, so much of the process can be done without office visits.
New construction in these colonies must follow MCD norms and get MCD permission. For existing construction, the MCD waived several building charges in August 2026 for structures that existed up to 6 April 2026, allowed regularisation certificates through listed professionals on self-assessment, and in September 2026 approved a rebate of up to 75% on certain regularisation charges for owners who complete regularisation by 31 October 2026, with the rebate continuing if that date is extended.
These changes came by policy decisions and notifications through 2026, and some dates may move. If you are buying, or already own property in an unauthorised colony and have not applied, check the portal and the latest MCD and Revenue Department notices for current deadlines before relying on any date in this post.
How to get a conveyance deed under PM-UDAY
The exact screens change, but the stages are broadly these. The portal shows the current requirements.
Confirm eligibility
Check that the colony is a notified unauthorised colony covered by the scheme, that it is not in the list of excluded affluent colonies, and that the plot is not on excluded land. The portal and the colony's boundary maps help with this.
Register on the portal
Register with your mobile number and identity details, and give the property's address and colony. Existing applicants under the old system can usually continue with their earlier login.
Upload the chain documents
Upload the last GPA, agreement to sell, will, possession letter and payment proof, along with earlier links in the chain if available, and identity proof. Upload utility bills or property tax receipts showing possession.
Property identification and verification
The property is located on the map and its boundaries and area recorded. Officials verify the documents and may ask for clarification or more papers. Disputes or competing claims stop the application at this stage.
Pay the charges
Pay the charges calculated on the plot area and land type, and the stamp duty and registration charges on the deed. Keep every receipt.
Receive and register the deed
The conveyance deed or authorisation slip is issued and registered. Collect it, check the name, area and boundaries, and then apply to the MCD for mutation and property tax in your name.
Documents to check before buying, and to keep for PM-UDAY
These are the papers that decide whether a property in an unauthorised colony can move to registered ownership. Ask the seller for all of them before you agree a price.
The chain
- Seller's GPA, agreement to sell, will and possession letter
- Receipts and bank proof for the price the seller paid
- Earlier links in the chain back to the original land owner, as far as available
- Any registered documents in the chain, such as a registered GPA or agreement
Possession and occupation
- Electricity and water bills in the seller's name over several years
- MCD property tax receipts
- Photographs and a site plan of the property
- Letter from the RWA confirming possession, if there is one
Scheme and approvals
- PM-UDAY application number and status, if the seller applied
- Conveyance deed or authorisation slip, if already issued
- Any regularisation certificate or MCD permission for construction
- Any notice from the MCD, DDA or revenue authorities
Seller's identity and family
- PAN and Aadhaar of the seller
- Consent of the seller's spouse and adult children where the property is a family home
- Legal heir documents, if the person in the chain has died
The main legal risks and how to reduce them
No purchase in an unauthorised colony is risk-free. This table sets out the usual risks and the practical steps that reduce each one.
| Risk | Why it matters | How to reduce it |
|---|---|---|
| Broken or doubtful GPA chain | PM-UDAY needs a genuine chain; gaps stop the deed and invite rival claims | Trace the chain back as far as possible; meet earlier holders; insist the seller fills gaps before sale |
| Double sale of the same plot | The same GPA set can be executed in favour of two buyers | Check registered GPAs at the sub-registrar; check possession and bills; public notice |
| Plot on excluded land | Forest, floodplain, protected monument zones and road or rail right of way are generally excluded | Check the colony boundary and the plot's location against the excluded areas before paying |
| Colony not covered | Affluent listed colonies and settlements outside the notified list are not under PM-UDAY | Check the colony name and boundary on the official list |
| Construction beyond permissible limits | Floors or coverage beyond MCD norms may not be regularised and can face action | Check the number of floors and coverage; ask whether regularisation is possible and at what cost |
| End of statutory protection | The Special Provisions Act runs to 31 December 2026 unless extended | Prefer property with a conveyance deed or a completed regularisation; check the latest extension |
| No bank loan | Lenders generally need registered title | Plan to pay from own funds, or buy property that already has a conveyance deed |
Buying before the conveyance deed: what your documents should say
If you buy before the seller has a conveyance deed, your documents have to do two jobs: protect you against the seller and his family, and let you apply under PM-UDAY in your own name. The usual set is an agreement to sell, a general power of attorney, a will in your favour, a possession letter, a receipt for the price and an affidavit by the seller. The will matters because, if the seller dies before the deed is issued, his heirs could otherwise claim the property.
The agreement should recite the full chain, state the price and the bank transfers by which it was paid, confirm that physical possession has been handed over, and include the seller's undertaking to sign any document and appear before any authority needed for PM-UDAY, regularisation or registration. Add an indemnity for any claim arising from the seller's or earlier holders' acts, and make the seller's spouse and adult children sign as consenting parties where the house has been a family home.
Where the sub-registrar will register the GPA or agreement, register it, because a registered document dated before a rival's unregistered one is strong evidence of priority and shows up in searches by later buyers. Have the utility connections and property tax account moved to your name at once, and apply under PM-UDAY as soon as the purchase is complete rather than leaving it to the seller.
Which land is excluded even inside an unauthorised colony?
Being inside a notified colony does not make every plot eligible. The regulations under the 2019 Act exclude certain kinds of land, and in general terms these include land in forest or ridge areas, the Yamuna floodplain zone, prohibited or regulated areas around protected monuments, and land in the right of way of roads, railways, drains and high-tension power lines shown in the master plan or zonal plans. Check the current regulations for the exact list.
A plot on such land cannot get a conveyance deed, and it is the most exposed to demolition. These plots are often cheaper, and sellers rarely volunteer the problem. A plot that backs onto a drain, sits under a power line, or is near a protected monument or the river deserves a closer look before any money is paid.
When Advocate B.K. Singh is asked to check a property in an unauthorised colony, the first thing he does is locate the plot on the colony map and the zonal plan, before reading a single GPA. If the land is excluded, the quality of the chain does not matter.
Can the MCD or DDA demolish my house in an unauthorised colony?
The National Capital Territory of Delhi Laws (Special Provisions) Second Act 2011 protects unauthorised colonies, along with some other categories, from punitive action such as demolition and sealing while the government frames and carries out policies for them. Parliament extended it in December 2023 until 31 December 2026. The protection is tied to colonies that existed by the cut-off date in the Act, and it does not protect fresh construction that violates the law.
In practice, the MCD does act against new construction in unauthorised colonies: extra floors, encroachment on roads and building on excluded land. Booking and sealing of new floors are common. If you buy a newly built floor, or plan to build, the protection for the colony will not necessarily protect you.
Because the Act is due to lapse at the end of 2026 unless extended or replaced, buyers should watch for what Parliament does in the winter session. A property that already has a conveyance deed and regularised construction is much safer than one that relies only on the statutory protection.
Can I build or add a floor after buying?
Only with MCD permission, and only within the norms that now apply. Under the 2026 relaxation, new buildings in the covered colonies must follow MCD norms and get MCD approval, and building plans can be prepared through empanelled architects and submitted online. Existing construction can be regularised on payment of charges, with the waivers and rebates mentioned above.
Do not buy on the assumption that you can add two more floors. Check the permissible height and coverage for the plot size and road width with an architect before you agree a price, because the value of a plot in an unauthorised colony often depends on how much can lawfully be built on it.
If a neighbour starts unauthorised construction that blocks your light, encroaches on your wall or threatens your structure, complain to the MCD and, if needed, file a civil suit for injunction, as explained in our post on injunction suits to stop construction.
Will a bank give a home loan for unauthorised colony property?
Generally not until there is a registered document of title. Banks and housing finance companies lend against a registered sale deed or conveyance deed and an approved or regularised building. A GPA chain, however long, does not satisfy them. Once a conveyance deed or authorisation slip is registered, the property becomes mortgageable, which is one of the main practical benefits of the scheme.
Some lenders offer loans against property in such colonies on other terms, such as small business loans, but at higher interest and with lower amounts. If you need a loan to buy, consider choosing a property where the seller has already obtained a conveyance deed, or make the sale conditional on the seller getting one first.
After the conveyance deed, the property can be sold by a registered sale deed with stamp duty and registration fee at the normal rates, explained in our post on stamp duty and registration in Delhi and UP, and mutated in the buyer's name, as explained in property mutation in Delhi and UP.
A made-up example: two buyers, one plot
Here's a made-up example. Suresh buys a 50 square yard house in an unauthorised colony in outer Delhi for ₹38 lakh, on a GPA, agreement to sell, will and possession letter from the seller, Vinod, who had bought the same way in 2014. Six months later, Suresh applies under PM-UDAY. Verification stalls because another man, Ramesh, has also applied for the same property, with a GPA from Vinod dated a year before Suresh's.
Suresh's documents are dated later, but he is in possession, the electricity and water connections are in his name, and he paid by bank transfer. Ramesh paid in cash and never took possession. The verification is kept pending, and Suresh is told to settle the dispute or get a court decision. He files a civil suit for declaration and injunction against Vinod and Ramesh and lodges a police complaint against Vinod for cheating.
The dispute takes two years to resolve and costs far more than a title check would have. A search of the sub-registrar records would have shown Ramesh's registered GPA, and a conversation with neighbours might have revealed the earlier deal. Suresh's position was strong mainly because he insisted on bank payments and took possession at once.
Mistakes buyers make in unauthorised colonies
- Paying in cash. Without bank records, you cannot prove payment in a dispute or under PM-UDAY verification.
- Not taking possession immediately. In a double sale, the buyer in possession with utilities in his name is in a far stronger position.
- Accepting only the seller's documents. The seller's GPA is only as good as the chain behind it. Ask for every earlier link.
- Ignoring the plot's location. A plot on a drain, under a power line or on the floodplain may never get a conveyance deed.
- Buying newly built upper floors. These are the ones most often booked or sealed by the MCD.
- Assuming the colony is covered. Check the official list and the colony boundary, not the seller's assurance.
- Leaving PM-UDAY for later. Rebates and simpler procedures may have deadlines. An application in your name, once the purchase is complete, protects your position.
If something goes wrong: remedies in unauthorised colony disputes
Disputes in unauthorised colonies are mostly about possession and double sales. If someone tries to dispossess you, a suit for injunction under Order 39 of the CPC, and if needed for possession, is available in the civil court with jurisdiction over the area. Since your chain rests on GPA documents, the court will look closely at possession, payment proof and the conduct of each party.
If a seller has sold the same property twice, or sold property he did not own, a criminal complaint for cheating under section 318 BNS, or forgery under section 336 BNS where documents were fabricated, can be made to the police. For offences before 1 July 2024, the IPC sections apply. Our post on civil and criminal remedies when someone occupies your property explains the options.
A point Advocate B.K. Singh makes to clients in these disputes is that the receipts and bank transfers usually decide the case, not the stamp paper. Courts dealing with GPA chains look for who actually paid, who took possession, and who has been paying the bills.
Before you pay for property in an unauthorised colony
- Colony on the notified list and not among the excluded affluent colonies.
- Plot not on excluded land such as forest, floodplain, monument zones or right of way.
- Seller's GPA, agreement, will, possession letter and payment proof seen in original.
- Earlier links in the chain traced and checked for gaps.
- Sub-registrar search for registered GPAs or agreements on the same property.
- Utility bills and property tax receipts showing the seller's long possession.
- PM-UDAY application status checked, and any conveyance deed verified.
- Number of floors and coverage checked against what MCD norms allow.
- Payment by bank transfer only, and possession taken on payment.
When to involve an advocate
Bring an advocate in before you pay the main amount, particularly if the chain has gaps, the seller is not the person in possession, the plot is near a drain, river, monument or major road, or another person has applied under PM-UDAY for the same property. An advocate can also help if your PM-UDAY application has stalled because of a document issue or a rival claim.
If you want the documents checked before you buy, or advice on a stalled application or a dispute, the team at B.K. Singh & Associates can look at the papers. You can send an enquiry with copies of the chain, or read more about our real estate practice and civil law practice.
Frequently asked questions
Is it safe to buy property in an unauthorised colony in Delhi?
It can be reasonably safe if the colony and plot are eligible under PM-UDAY, the GPA chain is complete and genuine, and the construction can be regularised. The safest option is property where the seller already has a registered conveyance deed. Without these checks, the risks of double sale and demolition are real.
What is the difference between a conveyance deed and an authorisation slip?
Both are registered documents issued under PM-UDAY that give ownership rights. A conveyance deed is issued where the colony is on private land, and an authorisation slip where it is on government land. Either allows registration, mutation, sale and mortgage.
Can I register a sale deed in an unauthorised colony?
Once a conveyance deed or authorisation slip has been issued for the property, it can be sold by a registered sale deed in the normal way. Before that, property has usually changed hands on GPA, agreement and will documents, which do not transfer ownership on their own.
What changed for unauthorised colonies in April 2026?
The Union government announced an as is where is relaxation for 1,511 colonies, removing the need for an approved layout plan before conveyance deeds are issued for existing buildings. The Delhi Revenue Department now issues the deeds, and applications moved to an integrated online system.
Is there a deadline to apply under PM-UDAY?
The MCD's rebate of up to 75% on certain regularisation charges was tied to completing regularisation by 31 October 2026, and reports in 2026 also mentioned a cut-off for fresh applications. Dates in this scheme have been extended before, so check the portal and the latest notices.
Will my house in an unauthorised colony be demolished?
Unauthorised colonies are protected from punitive action under the Special Provisions Act 2011, extended to 31 December 2026. The protection does not cover fresh unauthorised construction or plots on excluded land, and the MCD does act against new floors and encroachments.
Can I get a home loan for a house in an unauthorised colony?
Banks generally lend only after a registered conveyance deed or authorisation slip is issued and the construction is approved or regularised. Before that, financing is limited to costlier products, if any.
Which unauthorised colonies are not covered by PM-UDAY?
Colonies on the list of affluent unauthorised colonies, 69 in the 2019 scheme, are excluded, as are settlements outside the notified list. Within covered colonies, plots on excluded land such as forest, floodplain or right of way generally cannot get a conveyance deed.
Does the 2019 Act recognise GPA and agreement to sell?
Yes, for residents of notified unauthorised colonies. It recognises rights on the basis of the last GPA, agreement to sell, will, possession letter and payment documents, and allows ownership to be conferred through a conveyance deed or authorisation slip. Outside such colonies, Suraj Lamp still applies.
What if two people claim the same plot in an unauthorised colony?
PM-UDAY verification will usually stop until the dispute is settled or decided by a court. Possession, utility connections and bank proof of payment carry great weight. A civil suit for declaration and injunction, and a criminal complaint against a seller who sold twice, are the usual remedies.
Can I build an extra floor in an unauthorised colony?
Only with MCD permission and within the applicable norms. Under the 2026 relaxation, new construction in covered colonies must follow MCD norms, with plans submitted through empanelled architects. Unauthorised extra floors are the most common target of booking and sealing.
What happens after 31 December 2026 when the protection ends?
The Special Provisions Act lapses on that date unless Parliament extends or replaces it, as it has done several times before. Property with a conveyance deed and regularised construction is far less exposed, so owners should use the time to complete PM-UDAY and regularisation.
Written and reviewed at B.K. Singh & Associates
Advocate B.K. Singh
Founder of B.K. Singh & Associates. MCA, LL.B., LL.M., with more than twenty years of practice before the Supreme Court, the Delhi High Court, district courts and tribunals across Delhi NCR. This article explains the general law as of 24 October 2026; it is not legal advice on your facts.