The MCD Standing Committee has approved up to 75% off the charges for regularising built-up area in PM-UDAY colonies. If you regularise by 31 October 2026, you get the rebate, and if the government extends the date, the rebate continues too. Only four charges remain, and many older ones were already scrapped in August. So if you live in one of Delhi’s unauthorised colonies, this is a good time to act.
Great news to Delhi dwellers! Anyone who has lived in an unauthorised colony in Delhi knows the tension of owning a house on “papers” like GPA or Agreement to Sell.
This news should bring some relief. According to an ANI report based on an MCD press release, Standing Committee Chairperson Satya Sharma approved a proposal to give up to 75 per cent rebate on the charges MCD levies for regularising constructed area of houses in PM-UDAY colonies. Below I’ve broken everything down in question-and-answer format, from the basics to the history to the charges.
What is the recent announcement by the MCD about rebating the regularisation charges?
MCD announced that the rebate is up to 75% on regularisation charges for the constructed area of houses in unauthorised colonies under the PM-UDAY scheme.
It is available to applicants who complete regularisation by 31 October 2026, and if the Government extends the last date, the rebate also stays applicable during the extended period.
Why did MCD rebate 75% charges on regularisation for unauthorised colonies under PM-UDAY?
Chairperson of MCD Standing Committee, Satya Sharma said the scheme’s purpose is to give property rights to long-time residents of these colonies, so the process must be easy and affordable. She added that, considering people’s financial condition, MCD decided to give major relief so more residents come forward.
From 27 July 2026, MCD started issuing regularisation certificates through listed professionals on the basis of self-assessment, so applications can be disposed of faster. Camps, SMS and publicity drives have also been used to spread awareness.
What is PM-UDAY?
It stands for Pradhan Mantri Unauthorised Colonies in Delhi Awas Adhikar Yojana. The scheme gives ownership, transfer and mortgage rights to residents of unauthorised colonies in Delhi. Property rights are recognised through commonly available documents such as GPA, Agreement to Sell or Will.
Is this a new problem? When did regularisation attempts begin?
No, it’s decades old. Here is the timeline:
- 1961–62: A 1961 Delhi Administration press note became the basis for regularising the first 103 unauthorised colonies.
- 1977: A Government of India order led to 567 more colonies being regularised by MCD and DDA between 1979 and 1993.
- 2000–2001: The Union Cabinet approved a regularisation approach in July 2000, and guidelines followed in 2001.
- October 2019: In what was called a “Diwali gift”, the Union Cabinet approved ownership rights for about 40 lakh residents of 1,797 unauthorised colonies (later notified for 1,731 colonies). It came a few months before the Delhi Assembly elections, and the timing was widely discussed.
- 29 October and December 2019: The regulations were notified on 29 October 2019, and the Act followed in December 2019.
- 2019–2025, the slow years: Only around 30,000 people had benefited in five years, against an estimated 40 lakh residents, mainly because of the paperwork involved. DDA then ran single-window camps to speed things up.
- 6 April 2026: This is the cut-off for existing construction eligible under the regularisation window.
- 27 July 2026: MCD began the self-assessment system through listed professionals.
- 20 August 2026: Several UBBL-2016 charges were removed for PM-UDAY regularisation.
- 28 September 2026: The 75% rebate was approved, valid till 31 October 2026.
How big is this issue in numbers?
Roughly 13 lakh households and over 40 lakh residents, more than 30% of Delhi’s population, live in unauthorised colonies. According to the ANI report, 1,511 colonies are covered under the PM-UDAY Act, with about 44.75 lakh people.
So far, Conveyance Deeds or Authorisation Slips have been issued for about 40,000 properties. The DDA’s page speaks of 1,731 colonies, so the figures differ by source.
What is “regularisation of constructed area”?
Getting the ownership document (Conveyance Deed or Authorisation Slip) is one step. Regularising the building on your plot is another, and MCD levies charges for it.
What are the charges MCD levy?
There are four charges that MCD levy:
- Compensatory Regulatory Charge
- C&D Charge, which relates to construction and demolition waste
- Development Charge
- Admin/IT Charge
The 75% rebate applies to these four.
Which charges by the MCD were removed earlier?
From 20 August 2026, for construction existing up to 6 April 2026 in PM-UDAY colonies, these UBBL-2016 charges were dropped:
- Permit Fee
- Betterment Charge
- Levy and Additional Levy
- Plinth Fee
- Pre-Occupancy Charge
- Charges related to construction without approval
Labour Cess is also not part of MCD’s regularisation charges.
How does the rebate work in simple terms?
For example: If the four charges added up to ₹1,00,000 for a property, a full 75% rebate would leave ₹25,000 to pay. These are made-up numbers, since the release doesn’t give actual rates.
What is the deadline to get 75% rebate in Regularisation of unauthorised colonies under PM-UDAY scheme?
he deadline to get 75% rebate in Regularisation of unauthorised colonies under PM-UDAY scheme is 31st October 2026.
Sharma appealed to beneficiaries not to wait for the last day. The rebate would continue if the government extends the deadline, but don’t count on that.
Why regularisation of buildings is essential?
Chairperson of MCD Standing Committee, Sharma said it helps record your property as per rules and makes future property-related work easier. Legally recognised property also helps with easy sale, transfer, and mortgage or bank loans.
What are the practical next steps?
- Check that your colony is covered under PM-UDAY.
- Keep your ownership documents ready (Conveyance Deed or Authorisation Slip).
- Contact MCD or a listed professional for the self-assessment route.
- Ask for the exact charge calculation with the rebate applied before paying.
- Don’t wait for the last week of October, since queues and delays are common.
There are 1,731 unauthorised colonies in Delhi covered under the PM-UDAY Act, with a population of over 44 lakh. So far, Conveyance Deeds or Authorisation Slips have been issued for approximately 40,000 properties. It’s rare to get this much relief from a civic body, so if you’re eligible, use it. Do share this with neighbours and family in your colony.