PART 1 - National Institute of Urban Affairs

-------------------------------------------------------------------------------------------------------------------------
Vol. XXIX July – Dec 2009
No. 2
-------------------------------------------------------------------------------------------------------------------------
Establishing a Title Registration System in India:
Problems and prospects
Economics of Resettling Low-income settlements (slums) in urban areas:
A case for on-site upgrading
Fiscal Performance of Civic Bodies: The Greater Mumbai Perspective
Security of Tenure of Urban Poor Settlements: Trends and Experiences
Property Tax Reforms
Some facets of Migration to the districts of Maharashtra
Project Notes :
FIRE (D) e-Governance in Municipalities
Case Study:
Bhoj wetlands management and conservation
CEPT Workshop Report on Approaches to lands for the urban Poor, India
Book Review:
Urban Economic Base of National Capital Region of India by Dr. Barun kumar
Governing India's Metropolises by Joel Ruet et.al.
A Journal of the
National Institute of Urban Affairs
India Habitat Centre
New Delhi
COVER

Urban India
Journal of the National Institute of Urban Affairs
Editorial Advisory Board
Ashish Bose (Chairman) Chetan Vaidya Sayed S. Shafi Amitabh Kundu
Editor
Anil Rai
Assistant Editor
Basudha Chattopadhyay
Nalini Shangloo
Secretarial Assistance
Nand Lal Jaiswal
Guidelines for Manuscript Submission
Manuscripts should be submitted/sent in duplicate to NIUA. Alternatively, they should be
mailed to the Editorial team at NIUA. The length of the text should not exceed 6,000 - 8,000
words including tables and references. An abstract of 100–150 words must be given.
Illustrations, Maps and Graphs should be submitted on separate sheets. Material submitted
to the Journal should not be published/under review for publication elsewhere; a declaration
to this effect should accompany the manuscript. On acceptance of the manuscript for
publication in the Journal, the author is required to submit the material in soft copy either by
mail or on Compact Disk in MS Word format. Any complex Tables and Graphs must be
submitted separately in Excel.
References should follow the author-date system within the text, e.g. ( Chester 1951). The
style of referencing in the bibliography should be as follows:
Dutta, Abhijit and Bappaditya Chakravarty (1981) Organising Metropolitan
Development, New Delhi: Indian Institute of Public Administration.
Krishnan, G (1993) The Slowing Down of Indian Urbanisation, Geography,
78(1):80–84.
Please ensure that References are accurate with respect to author’s name, volume, issue
number of the Journal, page numbers, date and place of publication and the name of the
publisher.
Authors should send a brief resume indicating institutional affiliation, title of position,
address, phone/fax number and email address.
All editorial correspondence and subscription enquiries should be addressed to the Editor,
Urban India.
st
National Institute of Urban Affairs, 1 Floor, Core 4B, India Habitat Centre,
Lodhi Road, New Delhi 110 003
Phone: 24617543, Fax 011-24617513, Email: urbanindia@niua.org
ISSN - 0970-9045
FRONT INSIDE

-------------------------------------------------------------------------------------------------------------------------
Vol. XXIX July – December 2009
No. 2
-------------------------------------------------------------------------------------------------------------------------
Establishing a Title Registration System in India:
Problems and prospects
Dr Debolina Kundu
1
Economics of Resettling Low-income settlements (slums) in urban areas:
A case for on-site upgrading
Dr Renu Khosla
Fiscal Performance of Civic Bodies: The Greater Mumbai Perspective
Anita Rath
Security of Tenure of Urban Poor Settlements: Trends and Experiences
Natraj Kranthi and Dr Kavita Daryani Rao
Property Tax Reforms
Dr Gnaneshwar
Some Facets of Migration to the districts of Maharashtra
Dr Dipti Mukherji and Dr V.S. Phadke
FIRE Project Note : e-Governance in Municipalities
Case Study: Bhoj wetlands management and conservation
Aniruddhe Mukherjee
CEPT Workshop Report on Approaches to lands for the urban Poor, India
Dr Darshini Mahadevia Rutul Joshi and Rutool Sharma
22
50
70
85
120
138
150
176
Book Review:
Economic Development of NCR by Dr Barun kumar
Dr Rumi Aijaz
Governing India's Metropolises by Joel Ruet et.al
Chetan Vaidya & Poornima Singh
206
208
Contents of Previous Volume XXIX, No 1, Jan - June 2009
A Journal of the
National Institute of Urban Affairs
India Habitat Centre
New Delhi
A

Our Contributors
Dr. Debolina Kundu
Associate Professor, National Institute of Urban Affairs (NIUA), New Delhi
Dr. Renu Khosla
Director, Centre for Urban and Regional Excellence (CURE), New Delhi
Anita Rath
Assistant Professor, Centre for development Studies, Tata Institute of Social
Sciences, Mumbai
Natraj Kranthi
Doctoral Research Scholar, Jawaharlal Nehru Architecture & fine Arts
University, Masab Tank, Hyderabad
Kavita Daryani Rao
Director of Evaluation i/c, Jawaharlal Nehru Architecture & fine Arts
University, Masab Tank, Hyderabad
Dr. V.Gnaneshwar
Regional Centre for Urban and Environmental Studies, Hyderabad
Dr. Dipti Mukherji
Reader, Department of Geography, University of Mumbai
Dr. V.S. Phadke
Retired Professor, Department of Geography, University of Mumbai
Hitesh Vaidya
Sr. Municipal Development Specialist of FIRE (D)
Stephen Matzie
Planner and Finance Specialist of FIRE (D)
Aniruddhe Mukherjee
Secretary, Transport, Government of Madhya Pradesh, Bhopal (M.P.)
Darshini Mahadevia
Urban Poverty Alleviation (UPA) Cell coordinator, CEPT University
Rutul Joshi
UPA Cell and Faculty member at the Faculty of Planning and Public Policy,
CEPT University
B

Rutool Sharma
UPA Cell and Faculty member at the Faculty of Planning and Public Policy,
CEPT University
Dr. Rumi Aijaz
Fellow, Observer Research Foundation, New Delhi
Prof. Chetan Vaidya
Director, National Institute of Urban Affairs (NIUA), New Delhi
Poornima Singh
Research Associate, NIUA, New Delhi
B

Editorial
The extraordinary growth of cities in India is coming at a steep price. Not only has
overcrowding become endemic in many cities, it has resulted in shortage of urban
land, lack of access to adequate housing and services, as well as, rise in urban
poverty, closely associated with unemployment. These are becoming an increasing
social problem. The present issue of Urban India brings together research papers,
project and case study notes, workshop report, and book reviews, on a gamut of
significant urban issues, requiring urgent policy attention of urban planners and
practitioners alike. We expect readers shall find this issue of our bi-annual journal,
useful in generating a wider discussion and debate, on some of the most pressing
issues confronting the urban sector today.
Efficient functioning of land markets require efficient and updated land registration
systems which clearly indicate legal ownership of land. A robust system of land
record management and land rights in India is conspicuous by its absence, is argued
by Dr Debolina Kundu in a seminal paper “Establishing A Title Registration
System In India : Problems And Prospects”. The paper seeks to identify the need for
introduction of this reform, trace its genesis and outlines a roadmap for
implementation, based on best practices, from national and international
experiences. The paper further argues that a sound system of land records
management and efficient use of Information Technology is the key to successful
introduction of an appropriate property title certification system in the country.
Slums and low-income settlements in India have expanded greatly, and particularly
in the last two decades. The initiatives taken by the government, in relation to this
issue, have evolved from superficial actions and measures aimed at minimizing
infrastructure deficiencies, to broader initiatives seeking to consolidate newly
upgraded slum areas as part of the city. Based on a cost-benefit comparison of
slum resettlement in Delhi and in-situ slum upgradation in Mumbai, Dr Renu
Khosla's paper “Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading” argues that city policies aimed at
slum resettlement have had adverse long term economic impact; disempowerment
of working women; child education and health; tenurial security; and sustainable
urban poverty reduction. The paper advocates that in-situ upgradation should be
the preferred option and a 'win-win solution' for slum development, and goes on to
suggest that relocation must be conditional only in essential cases.
C

th
While the 74 Constitutional Amendment Act has widened the functional domain
of civic bodies, the fiscal divide of cities, wherein some rely heavily on intergovernmental
transfers while others enjoy comfortable fiscal position, is quite
conspicuous. Reviewing the fiscal performance of the Municipal Corporation of
Greater Mumbai (MCGM) the paper highlights that though MCGM relies on its
own sources of revenue, the fiscal surplus in its accounts is illusory as it has access
to forbidden source of revenue the octroi - and there is perpetual negligence of
capital expenditure. The paper underscores key issues related to the finances of
MCGM
Security of tenure for urban poor continues to be a vexed issue. Experts advocate
that tenurial security, together with an enabling role of the government with
reference to provision of housing finance, would go a long way in mitigating the
housing problem in cities and assist urban poor, over time, to gradually improve
their housing and living conditions. In this context, a scholastic attempt to
understand international and national experiences relating to tenure security of
urban poor settlements is made in the paper “Security Of Tenure Of Urban Poor
Settlements: Trends And Experiences” by Natraj Kranthi and Kavita Daryani Rao.
Presenting a critical review of nine international cases the paper identifies the best
practices and summarizes them into four broad categories which include (i) Tenure
security against eviction by force, (ii) Incremental and flexible approaches, (iii)
Collaborative and participatory approaches, and (iv) Regularization of tenure.
Property tax constitutes the single largest source of revenue to the urban local
bodies in India and it can provide ULBs with access to a broad and expanding tax
base. However V Gnaneshwar in the paper “Property Tax Reforms in India” argues
that the yield from property tax is not encouraging due to reasons like inelastic tax
base, defective assessment and rent control legislation. Unscientific method of
assessment, lack of transparency, non-assessment or underassessment of certain
properties, lack of proper property recording, official discretion and tax payerofficial
collision-all lead to revenue loss to the ULBs. Several reforms are
underway in the property tax assessment in the country. This paper examines
reforms initiated and underway in the property tax assessment and identifies
emerging patterns and their inadequacies in the Indian context.
In their paper “Some Facets of Migration to Districts of Maharashtra” Dr.Dipti
Mukherji and Dr. V. S. Phadke, while bringing out the spatial patterns related to
D

migration, observe that the process leads to growth of destination areas, and
depopulation of sending areas. On the basis of Census 2001 data on migration at
the district level in Maharashtra, it is observed that the sources of migrant
population display a significant spatial variation, with local migrants
predominating in less economically developed areas. It is argued that as the source
of migrants becomes more and more distant, the districts under their shadow
significantly increases.
Municipal e-Governance is a significant initiative in India and constitutes a
mandatory reform under the flagship Jawarharlal Nehru National Urban Renewal
Mission (JNNURM) of the Government of India. Not only does municipal e-
Governance combine good governance reforms with new information and
technologies (ICT), it also benefits citizens and government employees alike, by
enhancing management processes, service delivery, and public interface in order to
provide more efficient, convenient and transparent services. We are glad to publish,
for the benefit of our readers, a Project Note : “e-Governance in Municipalities”
dealing with lessons of experience for successful implementation of these critical
reforms in selected cities. The Project Note has been prepared by Hitesh Vaidya
and Stephen Matzie. .
Improving water quality and increasing storage capacity of the Upper and Lower
Lakes of Bhopal city, comprised the basic objectives of the Bhoj Wetlands project
in Bhopal. In our case studies section, we present a Note “Conservation and
management of Bhoj wetlands, India” which has been prepared by Aniruddhe
Mukherjee. This case study Note discusses the administrative, social and legal
issues, faced while implementing the various conservation measures, and draws
appropriate lessons of experience.
The need for multiple approaches to increasing land supply for the urban poor in
Indian cities is the main conclusion of the Workshop on “Approaches to Lands for
the Urban Poor” held by the Ministry of Housing and Urban Poverty Alleviation
(MHUPA) jointly with the National Resource Centre (NRC), CEPT University at
Ahmedabad. In the context of the Ministry's policy thrust on affordable housing for
the urban poor, embodied in the recently inaugurated Rajiv Awas Yojana, the
Workshop presented a concrete actionable agenda for increasing land supply for
the urban poor. The Report of this major Workshop has been prepared by Dr
Darshini Mahadevia, Rutul Joshi and Rutool Sharma.
E

The last section has a selection of book reviews. Dr Rumi Aijaz reviews the
publication titled “Urban Economic Base of National Capital Region of India” by
Dr Barun Kumar which offers a set of recommendations for the balanced regional
development of NCR. Prof. Chetan Vaidya and Poornima Singh review the book
“Governing India's Metropolises” edited by Joel Ruet and Stephanie Tawa Rewal
which describes and analyses urban governance through the study of decision
making processes pertaining to, supply and demand of collective goods and
services, in four Indian metropolises.
Wiith this issue, Urban India completes thirty years of its publication. We take
pride and a sense of achievement in fulfilling this task. In our long journey, we are
glad to have received the unstinted support and cooperation, of authors and
contributors, who are among the crème de la - creme of the urban profession,
including economists, planners, administrators, architects, environmentalists and
other professionals in the urban field. At the same time we, particularly the
dedicated editorial team, have had our share of trials and tribulations, which
invariably provided maturity, stability, immense strength and wisdom to carry on
this exciting journey. Our grateful thanks and congratulations to all of you!
Anil Rai
F

Establishing A Title Registration System In India:
Problems And Prospects
1
Establishing A Title Registration System In India:
Problems And Prospects
Dr.Debolina Kundu
Abstract
The land registration system in India is conspicuous by the absence of scientific
record management. Globalising India needs a robust system of land record
management and land rights in the country. The existing system of deed
registration is fraught with discrepancies and errors because of outdated methods,
which are predominantly manual. Introduction of the property title certification
system seeks to create a public record of titles through the introduction scientific
management of land records in a transparent manner. This paper attempts to
identify the need for introduction of this reform, trace its genesis and outline a
roadmap for implementation based on best practices from national and
international experiences. Available case studies indicate that huge funds and a
number of enabling legislations are required to bring about this reform in urban
centres. A sound system of land records and efficient use of Information
Technology would be key to success to ensure introduction of property title
certification system in the country.
_______________________________________________________________
1. Introduction:
Indian cities are fast globalising. This has put demand for creation of conducive
business environment to attract both domestic and international capital. As a result,
reforms in urban governance have received considerable attention of the
government. Certain ad-hoc policies of urban reforms had started in the early
nineties with the initiative of the Financial Institutions Reform and Expansion
(Debt-Market component) programme of the USAID followed by the passing of
th
the 74 Constitutional Amendment Act in 1992. However, these measures of
disciplining the urban local bodies were piecemeal in nature. The central
government, therefore, launched the Jawaharlal Nehru National Urban Renewal

2 Urban India
Mission (JNNURM) in 2005 to make the reform agenda more holistic in nature and
1
enable cities to become more competitive .
Notwithstanding these efforts, land registration system in India is conspicuous by
the absence of scientific record management. Globalising India needs a robust
system of land record management and land rights in the country. Unfortunately,
the existing system of registration in India is characterised by the absence of a
scientific system of recording and maintenance of land and property rights. In
India, both formal recognition of property rights by the state and facilitation of
efficient trade in rights by the state exist in incomplete form. As a result, title
ownership; possessory rights (e.g. leases), easements, mortgages etc are not readily
verifiable (USAID, 2006). This is more so because under the Indian Registration
Act of 1908 or Transfer of Property Act, 1882, the registration authority does not
need to verify the past records of the land/property or ownership details of the seller.
The deed registration, which is in common practice, does not provide certainty of
title and, therefore, land registration is not registration of title, but of deed of
2
transaction. This ultimately affects the property rights of the buyer adversely.
The agricultural holdings in rural India are recorded with the respective patwari of
the tehsil. The system of maintenance of land records for rural land is, however,
characterised by outdated methods, predominantly manual, susceptible to
discrepancies and errors. Like the rural land records, the urban land records are also
in a deplorable condition since the urban land in the country is not subject to any
central title registration system. In various states, records of land owned by
governmental agencies are maintained by individual agency. These records are not
systematically recorded in any cadastral survey. The maintenance of land records is
even worse for private ownership, where no central land ownership details are
recorded at the city or state level. The same is true for properties transferred from
leasehold to freehold. However, there is a common perception that payment of
property tax and associated receipts confer some proof of ownership, which is,
however, not the case. This presumed ownership could be challenged on various
grounds, like ownership history, area boundaries, financial encumbrances etc.
The widespread use of informal methods of property transaction through Powers of
Attorney and unregistered 'Agreements to Sell' has led many people to avoid use of

Establishing A Title Registration System In India:
Problems And Prospects
3
the formal system of deed registration in the country. The perceived high level of
Stamp Duty and registration charges on property transactions is mostly responsible
for the preponderance of the informal methods of transactions. The existing system
of deed registration is also highly inefficient. As for example, the delay in the deed
registration due to the presence of a manual system of registration has posed
problems in the development of a title registration in most of the cities of India. This
has been brought out in one of the recent studies of National Institute of Urban
3
Affairs. In addition, because the deed records are filed in written form and by date
of registration, it is difficult to trace the chain of ownership through a manual search
of the records. The process of registration of new deeds is now being computerized
in almost all the states, but the exercise of extending computerization to the old
records is a formidable task. Further, barring Andhra Pradesh, Rajasthan and
4
Karnataka, no attempts are being made to prepare a systematised computer
database of land records in a manner, which would help in ascertaining the previous
chain of owners, etc.
The need to establish a title registration in the country has been long felt in the
country. In 2006, the Delhi Government had taken up a concerted action in this
regard by commissioning a study to the Urban Institute, Washington on preparation
of a roadmap for establishing a title registration system in the state. Importantly,
this issue has also received considerable emphasis from the central government in
recent years. In fact, under the Jawaharlal Nehru National Urban Renewal Mission
(JNNURM), putting in place an effective Property Title Certification System forms
a mandatory state level reform. Under this system, the cities need to ensure proper
management and record of all property holdings within the city limits reflecting
authentic ownership at all points and easily accessible information on land
holdings.
Following the introductory section, the second section attempts to identify the need
for a new title registration system in the country. The third section attempts to trace
the genesis of the system. The fourth section suggests methods to move towards
more transparent and efficient land registration systems and also highlights case
studies from national and international best practices. The final section summarises
the conclusions from the previous sections and puts a perspective for future
development.

4 Urban India
2. The need for a new title registration system:
In urban India, land records are in a chaotic state with no central/state authority
having centralised database on land titles. This has resulted in the persistence of a
risk factor among buyers and mortgagors that the title to a property may be
imperfect or fraudulent; financial risk for banks and housing finance companies
that they may be unable to foreclose a mortgage, or that the property has been used
to secure a prior mortgage (USAID 2007). Further, inability to prove legitimate
ownership results in poor access to mortgage finance constraining the volume of
secondary transactions. The absence of a verifiable property titling and record
system has also led to litigation about property ownership and boundaries. There
are various instances of the same property being sold to numerous buyers leading to
endless litigation. Further Stamp and Transfer Duties are probably collected on
only a minority of transactions due to the preponderance of informal transactions
through power of attorney. The reduction of stamp duty to 5 per cent under
JNNURM reforms is expected to bring more transactions under the formal system
of registration.
City planners, para statal agencies and urban local bodies have no access to a land
information system, which constrain planning and management. Although the
urban local bodies collect property tax, their ability to identify properties that are
not presently included in the property tax registers would be enhanced if they were
to have access to a central register of properties. Further, their taxation ability
would be made much more efficient and equitable if they had access to an up-todate
property register. Similar benefits would accrue to the city governments while
planning for basic services for the city.
Further, availability of land is artificially constrained by speculative purchases,
litigation, lack of information on the land available for social housing etc.
Implementation of the master plans is also effected by the absence of database on
land that has clear land title. Absence of land cadastres also come in the way of
regularisation drives of cities.
The introduction of a formal system of property registration would bring about an
efficient and new system for property registration (new technology and new laws I

Establishing A Title Registration System In India:
Problems And Prospects
5
regulations) to clarify and authenticate citizens' property rights and improve
security of title to allow banks and housing finance companies to function with
confidence. It would bring clear definition of title in subdivided properties and
systematic documentation of titles. The recent developments in software
technology have much easier and cheaper options to introduce appropriate
technology than it was earlier. Best practices introduced in other countries have
demonstrated the technologies that could be adopted by India. A modern title
registration system will provide a service to all property owners in the country that
was previously lacking, in a cost-effective and user-friendly manner. The initiation
of a title registry will boost business, as it would signal to investors that India is a
globalising country, with a confident economy based on stable land rights.
The objective of the JNNURM reform is to provide certainty of title to land in
towns and cities in order to facilitate property transactions, encourage investment
and improvement, reduce litigations and uncertainty over the ownership of land.
The present system of deed registration, whether manually operated or
computerised would be replaced with a system of title registration such as has been
adopted by many countries by the establishment of a central registry of property,
rights and charges.
According to the USAID Study (2007), a land registration, mapping and
information system, would help the local economy in various ways as outlined
below:
provide a complete and transparent record of title and other interests in land
and immovable property;
establish the legality of title or other interests;
provide constructive notice to third parties of title and other interests on
property;
help avoid conflicts and property disputes;
be self-proving, providing a presumption of accuracy and indemnification for
errors;
protect subsequent owners through a complete and transparent chain of title;
collate data about real estate markets;
provide data to help government determine rational land use policies;

6 Urban India
facilitate the rational management of property assets held by public agencies;
support the property tax system.
All these would result in bringing about a guaranteed title certification system
which would help in more effective urban planning, developing an efficient
mortgage market, planning of informal housing etc.
3. The Genesis of the Land Title Registration (Torrens) System
The Title Registration (Torrens) System refers to a system by which ownership of
real property is established through the issuance of an official certificate indicating
the name of the individual in whom such ownership is vested. The idea of a system
of land title registration originated with Sir Robert Torrens of Australia, and has
generally become known as the "Torrens System." In 1857 he introduced a bill
5
providing for the registration of land titles. The idea spread rapidly to British
Honduras in Central America in the same year and to Queensland, Tasmania and
Victoria in 1861. Most of the other British colonies have since then adopted the
system. It has become popular throughout the globe as it addresses two major
problems, that of uncertainty surrounding land ownership, and confusion around
land transactions. Under this system, all transfers of land are recorded in the land
register. Most importantly, the owner of the land is established by virtue of his name
6
being recorded in the government's register. This system also records easements
and mortgages.
The effect of registration under the deed registration system is to give the
instrument registered "priority" over all instruments that are unregistered. The
basic difference between the deeds registration and Torrens systems is that the
former involves registration of instruments while the latter involves registration of
title (USAID, 2007).The Torrens title system operates on the principle of title by
registration (i.e. the indefeasibility of a registered interest) rather than registration
of title. The system does away with the need for a chain of title (i.e. tracing title
through a series of documents). Instead, each parcel of land is given a separate folio
in the register and is identified by reference to a registered plan. On the first
registration of land under the system, the land is given a unique number called a
folio which identifies the land by reference to a registered plan. The folio records

Establishing A Title Registration System In India:
Problems And Prospects
7
the dimensions of the land and its boundaries, the name of the registered owner, and
any legal interests that affect title to the land. To change the boundaries of a parcel
of land, a revised plan must be prepared and registered. Once registered, the land
cannot be withdrawn from the system.
A transfer of ownership of a parcel of land is effected by a change of the record on
the register. The registrar has a duty to ensure that only legally valid changes are
made to the register. A change of ownership may come about because of a sale of the
land, or the death of the registered owner, or as a result of a court order, etc.
Similarly, any interest, which effects or limits the ownership rights of the registered
owner, such as a mortgage, can also be noted on the register. There are legal rules,
which regulate the rights and powers of each of these interests in relation to each
other and in relation to third parties. The State guarantees the accuracy of the
register and undertakes to compensate those whose rights are adversely affected by
an administrative error.
The Torrens system works on the following three principles as outlined in the box.
Three principles of Torrens system
Mirror principle - the register or the Certificate of Title reflects,
i.e.,mirrors accurately and completely the current facts about a person's
title. This means if a person sells an estate, the new title has to be identical
to the old one in terms of description of lands, except for the owner's name.
Curtain principle - one does not need to go behind the Certificate of Title
as it contains all the information about the title. This means that ownership
need not be proved by long complicated documents that are kept by the
owner, as in Private Conveyancing system. All the necessary information
regarding ownership is on the Certificate of Title.
Insurance principle - provides for compensation of loss if there are errors
made by the Registrar of Titles.
Source: T Rouff, 1957

8
Urban India
4.1. The legal basis for a Title Registry:
The USAID (2007) study outlined an alternative approach to improve the
functioning of the present system of deed registration under the Registration Act
1908 in order to allow users better access to the data base and to bring more
properties into the system. The study (2007) suggested that this could be achieved
by computerizing all the existing records dating back to 1908 and linking them
through a chain of title; by enforcement of regulations relating to Powers of
Attorney; and by extension of the requirement to register other types of transaction
(e.g. mortgages, transactions in the Urban Villages, etc). The study indicates that
this exercise would marginally increase the certainty of title, and could not form the
basis for any form of guarantee. Further, it would be relatively difficult and
expensive in cases especially while interpreting and linking the chains of older
documents, and would likely increase the incidence of litigation. Alternatively, the
study recommended the introduction of a land register.
The land register would contain the following details:
A description of the attributes of the land parcel: a precise reference to the Land
Cadastre -title number, location, etc
Land ownership and possessory rights -e.g. the name of the owner(s) of the
land, the capacity in which the owner holds the land, particulars of leases, etc.
Non-possessory rights (easements and covenants), mortgages and other
charges. Title registration includes the details of all legal transactions affecting
the parcel, including sales and mortgages. Equitable Mortgages (mortgage by
deposit of title deeds) are presently exempt from registration by the Registrar
of Assurances under the Registration Act 1908. In order to protect lenders -all
such transactions could be included in the title register by an administrative
order.
Interests in apartments. The title registry should reflect the legal interests of
different ownership interests in a built property (e.g. a condominium built on
leased land).
All these details of the land register would make it possible for the respective state
government to build a database on urban land/property and also confer land titles in
an efficient and transparent manner. In India, the respective state

Establishing A Title Registration System In India:
Problems And Prospects
9
governments may undertake the introduction of the new registry systematically,
area-wise (district), over a period of years. Gradually when the whole of a state is
covered by the new Title Registry, the existing Deed Registry operated by the
Registrar of Assurances would become redundant and such a system may be
discarded. In the transition period, however deeds pertaining to areas not yet
notified for inclusion in the Title Registry would continue to be registered in the
Deed Registry. The record of titles could be created over a period of time. Three sets
of registers would be maintained ultimately, namely: a) register of titles, b) register
of disputes and c) register of charges and covenants.
Enabling Legislations:
Various enabling legislations are to be put in place to bring about title registration
system in the country. Amendment to the following Acts would be necessary for the
introduction of Title Registration system:
Indian Registration Act 1908, requiring compulsory registration of title instead
of deed (union Government),
Section 18 of Indian Registration Act 1908 requiring compulsory registration
of all land related transactions land acquisition, court decrees, land orders,
heirship partitions, mortgages, agreements to sell, power of attorney, etc.
(union Government),
Transfer of Property Act, 1982 requiring verification of ownership, (union
Government),
Indian Evidence Act that require Revenue Records to be conclusive rather than
presumptive and Indian Contract Act of 1872, requiring contracts to be
registered (union Government).
In addition to the enabling legislations, various other legal measures need to be
taken by the respective state governments. These would include resolving the
conflicting role of the revenue department of the state government as the sovereign
authority on government land and also as an adjudicator of rights against the
Government. Further, legal provisions must be introduced to safeguard guaranteed
title provisions from contrary provisions of other state laws and for providing for
legitimate counter-claims to land ownership. Efforts should be taken to protect the
state and legitimate owners with “ provisional title” that over a certain time

10
Urban India
converts to “conclusive title” protected by state. Further, there should be provisions
for creation of an indemnity fund to provide for compensation for genuine counterclaims.
An escrow account may also be created to safeguard the indemnity fund.
The proposed institutional structure
A land registry may be established in each state under the existing land revenue Act.
The State Government could establish a new Department of Lands and Survey,
with the responsibility for administration of both the land registry and the land
cadastre. It would be desirable if the cadastral agency and the land information
system were tied within the same agency, rather than being decentralised between
different government authorities. Such an administrative set up would avoid
duplication of responsibilities and speed up the process of title registration.
Adoption of Computerised Process of Registration of Properties
Land registers are computerized in various countries although there are several
national or provincial governments that have chosen to retain a manual system. It is
important to note here that a manual system of registration leads to several
inefficiencies in land administration. Given the present state of technology
worldwide and India's pre-eminent expertise in information technology, each
state's land registry and land cadastre can be fully computerized from the
beginning. The JNNURM reform has 'adoption of computerised process of
registration of properties' as one of the mandatory reforms. Adoption of this reform
would bring a step closer to the title certification system. In fact, almost all states
have already adopted computerised process of registration of properties. States like
West Bengal are in the process of implementing this system, where manual system
of registration is still prevalent in most of the districts.
Public Access to information
One of the principles of title registration is that once title or other interests are
registered, all persons are deemed to have constructive notice of the facts in the
record. This information is essential to prevent fraud, to protect the interests of
holders of rights in the property against other parties, ease mortgage procedures and

Establishing A Title Registration System In India:
Problems And Prospects
11
to allow property owners to freely exercise their property rights, both in formal and
7
informal areas of cities.
Cadastral Survey
As mentioned earlier, it would be important to undertake a cadastral survey in order
to establish the precise boundaries of each parcel of land. This will form the basis of
a cadastre, which would comprise of a series of maps showing the size and location
of all land parcels, together with a small text describing the attributes of the land.
The land cadastre should show the geometric characteristics of a property. This
would help to precisely locate each individual parcel of land. The cadastre may
include: geometric coordinates, property addresses, land use, property
information, tenure, details of construction of buildings and apartments;
population, price or value stated (most recent) as well as details of any registered
charges.
In addition to guaranteeing ownership and security of tenure, and thereby assuring
better access to credit, information contained in the land registry and cadastre can
be used for purposes of estimating and collecting property taxes in the urban areas.
The same data may be used to support land use planning and management including
development control, and planning for redevelopment, planning for and
management of public utilities and services; transport planning; emergency
planning and management; and for demographic and other statistical analysis in the
respective cities. It can be used to monitor land markets, an important potential
source of revenue as well as for property assessment and valuation. Survey of India
(NRSA) could be entrusted with the establishment of a geodetic network whereas
licensed private surveyors can undertake lower-level mapping (USAID, 2007).
Cost of Implementation:
Capital costs for the introduction of a new land title registration system vary widely
from country to country, depending on needs and the scope of the project.
International experience shows that capital costs are equivalent to upwards of $10
per property registered. In India, the costs of first registration for the Nagarasti
Project in Belgaum was about Rs.300 per property.

12
Urban India
International experience shows that capital costs of new registration project have
been allocated between components as follows:
Land registration and titling, including systematic (first)
registration and data conversion 20-45%
Cadastre services contracts (aerial photography,
mapping, surveying) 10-40%
Equipment, vehicles, furniture 5-25%
Technical advisors 3-10%
Policy development and project management 7%
Training and education 5%
Civil works 1-15%
Total 100%
Source: USAID, 2007
In Thailand, the first registration charge was $4 per parcel while the actual cost was
$40 per parcel. The fee was kept minimum with the idea that an affordable fee
would result in higher registration necessary for the success of the program. This
approach does not ensure recovery of the full costs of set-up of the new system. It
was based on the assumption that relatively low operational costs can allow land
registries to become self-financing after the start-up period even with modest fees.
Fees that are too high tend to discourage registration and increase the likelihood of
increase of unregistered properties. The central government should assist the states
in financing such capital projects, as funds are a major constraint in the
implementation of the reforms.
4.2. Case studies from National and International Best Practices:
Various countries have a long history of scientific management of their urban land
through urban land title certification system. Attempts may be made by the state
governments to introduce these efforts in their respective urban areas. Under the

Establishing A Title Registration System In India:
Problems And Prospects
13
JNNURM, a few states have initiated certain reforms in the above area. The
following section attempts to outline the best practices, both at an international
level as also at the national level, which would act as a roadmap for various state
governments to introduce the reform.
International best practice: State Government of Victoria:
The State Government of Victoria delivers the Title and Property Certificates
(TPC) Service. TPC is an easy-to-use self-service that combines online orders for
state and local government property certificates and information statements for
Victoria. It also includes online retrieval of information such as titles and plans
where available. It charges a fee for service and payment is by credit card.
Properties are typically described by street address or a 'rate assessment number'
allocated by an authority, e.g. local government or utility. A property can consist of
one parcel (e.g. a suburban house-block); many parcels (e.g. a farm); or part of a
parcel (e.g. a shop in a development). The Council's view of property is usually seen
as being definitive and is described by a Council Property Number (CPN).
The service is through seven simple steps:
1. Specify property - One has to choose one of the listed property and enter in
the requested details.
2. Confirm property - To confirm the property, the service will match the
volume/folio and plan numbers (these are required to order Copy of Title and
Plan of Subdivision certificates). One has to confirm the property to order
certificates from other authorities. One will also be able to visually confirm
the property on a map. If the property details are not correct, one can select an
alternative property.
3. Select certificates - One will be asked to select from a list of certificates
available for the specified property.
4. Delivery details - One will be asked to provide and confirm delivery details
and options for delivery by email or fax.

14
Urban India
5. Payment details - Payment for the whole order is completed by a single credit
card transaction.
6. Confirm Order - One will be asked to check the details of order and to select
purchase if all details are correct. One can also save selections and finish
transaction later.
7. Receipt - When the application and payment has been successfully processed
a printable receipt is issued. One can check the status of your order, at any time
during processing of the order.
England:
In England, the government agency (www.landreg.gov.uk) maintains a database of
all properties in the United Kingdom (UK) with regard to the address, ownership,
service address, purchase price, mortgages and basic description. Websites like
www.ourproperty.co.uk, www.mouseprice.com, www.hometrack.co.uk,
www.upmystreet.com etc take this information from the Land Registry as well as a
number of other sources to provide customers with the relevant information.
The Land Registry records whether each house etc has a mortgage or not and this
information is publicly available via their website. However, they do not have the
ability to export this data as a bulk text output for analysis since this would require
significant and costly changes to their database package. At present one can search
any property in the UK at www.landregisteronline.gov.uk and download a PDF file
with all the information about the property for about £3 per property. One can pay
for this by credit card without any need to register or open an account and be billed
monthly. The PDF file download will be the Official Copy of the register for the
property. It will show the address, owner's name, his service address, price bought
for, when bought, what “charges (mortgages) exist and with whom and a variety of
other current and historic details.
A caution is taken against first registration for protecting an interest in an
unregistered estate affecting land. A caution can protect a wide variety of interests,
as for example, rent charges and franchises. For each caution there is a 'caution title'

Establishing A Title Registration System In India:
Problems And Prospects
15
- a record, under a distinguishing number, of the details of the caution and of the
declaration in support and of a plan showing the extent of the land affected by the
caution. A caution is not an actual registration of any estate in land. It is merely a
means to trigger notification to the person who lodged the caution when an
application for first registration is made. There can be more than one caution in
respect of the same property.
In the UK, the title register contains the details relating to the property.
Further, each title register has three parts:
property register - a description of the property and any rights that may benefit
the property
proprietorship register - who owns the property and any restrictions upon their
power to deal with the property
charges register - further information such as mortgages or rights that may
adversely affect the property.
National Experience: The Rajasthan Urban Land (certification of title) Reform,
2008:
The State Government of Rajasthan issued an ordinance in October 2008 to provide
for survey and maintenance of record of urban lands and certification of titles. This
reform along with computerisation of the process of registration of land and
property will help to bring about an efficient real estate market where transactions,
i.e., sale and purchase of properties, can take place smoothly in a transparent
manner.
Appointment of Urban Land Title Certification Authority:
The ordinance enables the State Government or urban local body to carry out a
survey of any urban area within the State. The officer conducting survey shall
prepare a map, register and field book of the urban area or part thereof under survey.
After completion of survey operations in any urban area, the officer in charge of
survey shall send all maps, registers and other documents including files on which
decisions were recorded and other papers connected with survey to such urban

16
Urban India
body in whose local area the survey was conducted or to such other authority or
department of the State Government as the State Government may specify by
general or special order for safe custody of record of survey.
If the State Government is satisfied with the survey and approves it, it should be
notified in the Official Gazette. The owner, title holder or occupier of the land or
premises which has been surveyed shall be liable to pay to the officer or authority in
charge of the survey, a fee at such rate, in such manner, within such time after the
completion of survey and to such extent, as the State Government may prescribe
and any survey fee not so paid shall be recoverable as arrears of land revenue. Every
owner, holder of title or occupier of land or premises who has paid the survey fee
under this section shall be entitled to receive free of charge, and every owner, holder
of title or occupier who is not liable to pay such survey fee shall be entitled to
receive on payment of such charges, as may be prescribed, a certified extract from
the map and a certified extract from the register prepared so far as they relate to such
land or premises.
After the commencement of the Act, the State Government shall, by notification in
the Official Gazette, appoint an officer of the Indian Administrative Service to be
the Urban Land Title Certification Authority for the purpose of receiving
applications, scrutinizing the documents, verification from relevant official records
including the records kept by the local urban bodies, and issuance of certificate of
title in such form and in such manner as may be prescribed. The State Government
may also appoint such number and category of other officers as it may think
necessary to assist the Certification Authority in discharge of his functions under
this Act. A person who holds title of any urban land immediately before the
commencement of this Ordinance may, and the person who acquires title of any
urban land after the commencement of this Ordinance shall, apply to the Authority
for the certificate of title under the provisions of this Act, in a manner and within
such time as may be prescribed by the Act. The Authority, after verification of the
documents would issue a provisional certificate of title for a period of two years
without claiming any guarantee on behalf of the State Government. The Authority
may, after expiry of the said period, issue a permanent certificate of title.
Certification cum guarantee charges: Every person, who seeks a certificate of

Establishing A Title Registration System In India:
Problems And Prospects
17
title under the provisions of this Act, shall be liable to pay, by way of certification
8
cum guarantee charges. 1% of the prevailing DLC rates of the land to which
certificate relates. The amount of certification cum guarantee charge shall be
payable at the time of issue of the provisional certificate of title.
Establishment of a sinking Fund: A sinking fund needs to be established where
the money realized on account of fees, penalty and certification cum guarantee
charge shall be deposited to the Fund. The Fund shall be utilized to meet out the
expenses on account of the payment of any compensation in accordance with the
provisions of the Ordinance and such other administrative expenses incurred by the
Certification Authority. The management, accounts and audit of the Fund shall be
regulated by such rules as may be made by the State Government from time to time
in this behalf.
State Guarantee: The State Government shall stand as guarantor for the
genuineness and authenticity of the title to the extent specified in permanent
certificate issued by the Authority. Any person, who enters into an agreement for
consideration with the titleholder on the basis of a permanent certificate of title
issued under this Act and thereby incurs any loss due to any defect of title other than
that specified in the certificate, shall be entitled to be compensated by the Authority.
However the compensation payable shall not exceed the amount of the value of the
land to which the certificate relates calculated at the rates for purpose of Stamp
Duty prevalent at the time of issue of the certificate.
Indemnity: Any person, who enters into an agreement for consideration with the
title holder on the basis of a permanent certificate of title issued under the Act and
thereby incurs any loss due to any defect of title other than that specified in the
certificate, shall be entitled to be compensated by the Certification Authority on
behalf of the State Government as guarantor, for such loss to such extent as they are
attributable to such defect, in such manner as may be prescribed. It may be noted
that the amount of compensation payable shall not exceed the amount of the value
of the land to which the certificate relates calculated at the DLC rates prevalent at
the time of issue of the certificate in the area in which the land is located.
Appeals: Any person aggrieved by an order of the Certification Authority may
appeal within sixty days from the date of such order to the Tribunal.

18
Urban India
Delhi Urban Property Registration:
The Delhi urban property registration deeds will be replaced by title deeds and the
latter will be issued once a central authority that will have a database of all
properties in the city. The draft plan talks of awarding provisional registration in
more complicated cases such as unauthorised colonies and old pre-independence
constructions like those in the Walled City in the first seven years from the time the
Act comes into force as it will take that much time to put a central database in place.
Consequently permanent registrations will be awarded.
After the seven-year window period, registering with the titling authority will
become mandatory. The authority will conduct its own survey to ascertain
ownership. For very old properties like those in the Walled City where documents
may not always be available, registration will continue to be done by the subregistrar.
As of now there is no central system of maintaining records of property
ownership because of multiplicity of authorities. The proposed Central Authority
under the draft Bill will maintain complete records of all properties and scrutinize
the details provided to identify the real owner. These will also be digitised and will
prevent fraudulent claims on ownership of a property, as the records will be
available for courts to take decisions. Registration of agricultural land, however,
will be out of its purview. The Authority will also function as a Tribunal to look at
disputes and an appellate tribunal too. All data collected by the Titling Authority
will be digitised and title status of properties registered with it will be put up on a
central website.
The Delhi Government had hired a legal firm to draft the bill. Consultation on it will
soon be taken up along with various stakeholders like the real estate companies.
The move towards introducing a Property Title Certification is the need of the hour
to prevent rampant fraud in the real estate sector. In the city of Delhi, there are
instances of a single property sometimes getting registered under different names
numerous times. The Titling Law, when introduced, will put an end to this problem.
5. Conclusion:
Introduction of property title certification system in ULBs is one of the key reforms

Establishing A Title Registration System In India:
Problems And Prospects
19
under the Jawaharlal Nehru National Urban Renewal Mission. The objective of the
reform is to enable the cities to move towards guaranteed property title systems,
which would help to introduce scientific management of land records in a
transparent manner. The existing system of deed registration is fraught with
discrepancies and errors because of outdated methods, which are predominantly
manual. Introduction of the property title certification system seeks to create a
public record of titles, which describe the property details, as well as the title and
has a system for reflecting any transaction over time. The present records are at best
presumptive and do not convey any title. As mentioned earlier, a property title
certification system would require various legal changes, which can be brought
about by enacting an overriding law for amendments to existing laws. In this
regard, an overview of the best practices may prove useful for implementation of
the reform. It may be reiterated that a property title certification system is based on a
sound system of land records and efficient use of Information Technology would be
key to success of the reform. Last but not the least, the central government should
assist the states in financing such projects as funds are a major constraint in the
implementation of the reforms.
Acknowledgement: The secretarial assistance of Ms.Anita Sharma (NIUA) is
acknowledged.

20
Urban India
End Notes
1 Introducing Property Title Certification is a mandatory reform under
JNNURM. States are to implement this reform by the end of the mission
period.
2 The deed of transaction is a fiscal instrument for the state, allowing it to collect
a 'fee'.
3 Preparation of Guidelines For Model System For Procedures Under the
Parameters of Registering Property and Dealing with Licenses (Doing
Business in Indian Cities) NIUA, 2008 under Ministry of Commerce and
Industry, GOI
4 Karnataka has computerised land records since 2003-04 onwards (NIUA,
2008).
5 This bill became a law in South Australia January 27, 1858, and went into
effect on July 1, 1858.
6 An easement is a non-possessory interest to use real property in possession of
another person for a stated purpose.
7 Details available in the Report prepared for USAID/India, December 2006:
"New Approaches to Land Titling and Tenure in Delhi". Report prepared for
USAID/India
8 “DLC rates” mean the rates determined from time to time by the District
Level Committee constituted by the State Government under clause (b) of
sub-rule (1) of rule 2 of the Rajasthan Stamp Rules, 2004 for the purpose of
levying Stamp Duty on instruments.

Establishing A Title Registration System In India:
Problems And Prospects
21
References:
1. T Rouff, 1957, An Englishmen Looks at the Torrens System, Law Book Co,
Sydney.
2. U.S. Agency for International Development /India, 2006, "New Approaches to
Land Titling and Tenure in Delhi".
3. U.S. Agency for International Development / India , 2006, “A New Land Title
Registration System for Delhi: Recommendations,” The Urban Institute
Washington D.C, April 2007
4. www.landreg.gov.uk
5. www.landregisteronline.gov.uk
6. en.wikipedia.org/wiki

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
22
Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
1
Dr. Renu Khosla
Executive Summary
The 'Economics of Resettlement' study measured costs and benefits of slum
upgrading versus resettlement. Cities favour resettlement to profit from
evacuated land but believe that tenure security and better living conditions under
resettlement have benefits for the poor. Anti resettlement lobbies believe distances
from livelihoods shock people into poverty but no conclusive evidence.
The study made a cost-benefit comparison of slum resettlement in Delhi and insitu
upgrading in Mumbai including all financial costs and benefits, particularly
the unacknowledged social costs and benefits. It concluded that far-site
resettlement was significantly more costly for residents. Whilst benefits for
governments are less in upgrading, it has significantly lower costs for both cities
and people. Resettlement costs from job and income losses and expenditure and
debt increases have long term economic impact. Decrease in working women with
disempowerment, and termination of education among children has huge
implications for gender development and sustainable poverty reduction. Impacts
are also likely on city environments through added transport requirements.
Relocation also disturbs inner city economy through market erosion. City policy
must acknowledge the critical link between resettlement and development for
tenure security benefits not to be nullified. Upgrading is a win-win solution for
slum development, and relocation must be conditional in essential cases.
________________________________________________________________
1
Director, Centre for Urban and Regional Excellence. The study was conducted with
financial support of the South Asia Network of Economic Institutes (SANEI) in May 2006.
The following co-authors and researchers have contributed significantly to the study; Shveta
Mathur, Antonia Smithies The study predates the JNNURM and the policy context is likely to
have changed since the study.

23
Urban India
Introduction
This study was designed to measure the costs and benefits of slum upgradation
versus resettlement. Most cities favour resettlement, believing that the high value
of evacuated land is rationale enough for resettling slum dwellers. They also
believe that it creates a Win-Win situation where poor get alternate land in good
quality environments and government accrues benefits from newly available land
for development. Those against resettlement believe that it distances families from
livelihoods and shocks them into poverty. Yet there is no conclusive evidence
comparing the two approaches.
The current study conducted a cost-benefit analysis of slum resettlement and in-situ
upgradation in Delhi and Mumbai respectively. Through a detailed analysis of the
financial costs and benefits, as well as the often unacknowledged social costs and
benefits, the study is intended to inform slum policy and raise governments'
awareness.
Approaches to Slum Development
Response to slum development in India has been mixed but typical; ignore,
eradicate or relocate. According to Cities Alliance, ignoring existence of slums was
common until the early 1970s, on the assumption that slums were unavoidable but a
temporary phenomenon that would be overcome by economic growth. In India, the
reality of slums was first acknowledged in the Seventh Five Year Plan (1980-85)
and city master plans just saw them as blank spots of undeveloped land. By mid
1980's, when this policy of disregard proved ineffective in the face of continuing
slum growth, governments pursues evictions, rationalized on the grounds that freed
up space was required for urban renewal and infrastructure development.
Upgrading of slums is about rejuvenation of the existing community with
minimum disruption and loss of physical and social assets (DFID, 2000). Typically,
upgrading provides security from eviction through regularization of land tenure
and improvement in existing infrastructure. Successful upgrading strengthens a
community's voice and ability to transform its own conditions and brings in
substantial investment from residents into housing and small business expansion.
India has had several experiences with successful upgrading yet upgrading

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
24
solutions have not been acceptable to the government. Instead relocation is
pursued, prompted by the desire to improve use of land and property on which
slums are located (Cities Alliance). However, since relocation is usually to the city's
edge, away from informal income opportunities of inner-city areas, such policies
often perpetuate, rather than mitigate, conditions of poverty.
Both Delhi and Mumbai have large numbers of slums housing nearly half the city's
population of poor and migrants. As slums are encroachments on public land
without legal land ownership rights for residents, housing here is impermanent with
poor access to basic services, intolerable sanitary and health conditions,
overpopulated in insecure neighbourhoods with continual threat of eviction,
excluded from decisions and with enormous social and psychological burdens.
Majority of slum households live below official poverty lines, often unskilled and
employed in the highly insecure informal sector. Srivastava notes that the informal
sector accounts for 66.7% of total employment in Delhi and nearly the same share
(68%) in Mumbai.
2001 Census estimated 40.3 million slum dwellers in India, 1.85 million in Delhi
and 6.2 million in Mumbai. For the same period, the Ministry of Environment
estimated 4.7 million slum dwellers in Delhi living in the 1080 slums listed by the
Municipal Corporation of Delhi. Official enumeration of slums in Mumbai in 1983
was 1,930 settlements and recent estimates suggest that 54.7% of the city's
population lives in 3.5% of its area in dense enclaves.
Objectives
The study was designed to:
(i) Contribute to the body of research on slum resettlement in India, through
comparing the costs and benefits of slum relocation and slum upgrading for all
stakeholders;
(ii) Make recommendations on the resettlement policy by providing concrete
evidence of successes and failures.

25
Urban India
Sample
India's two largest cities, Delhi and Mumbai, with the country's most significant
slum populations were selected for the study. Also, because the two have adopted
very different approaches to slum redevelopment, relocation in Delhi versus
upgrading or near site resettlement in Mumbai.
Delhi
Three resettled and three matched non-resettled sites were selected in Delhi using
the following criteria:
(i)
Timing of relocation; within three years of the study for clear recall and for
three different time periods since the move (6months, 12-18 months, up to 36
months).
(ii) Distance from old settlement to new site variable (5kms, 15km, 50km) to
measure intensity of economic shock; and
(iii) Size of settlement medium with approximately 1000 households.
Mumbai
Three upgraded sites and three non-upgraded control sites were selected. Upgraded
sites were randomly selected from those that were part of the Slum Redevelopment
Scheme 1995. Distance, time and size criteria were inapplicable here.
Primary data was collected using both quantitative and qualitative tools. Detailed
household questionnaires were used for the household survey. Households in the
study were selected using a stratified random sampling methodology. 15
households each from 4 parts of settlement were selected. A total of 360 households
in Delhi, and 300 households in Mumbai were sampled to generate our quantitative
database. Qualitative data was also collected through Participatory Learning and
Action (PLA) tools. Secondary Data was collected from government departments
and through interviews with officials.

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
26
Table.1: Sample

27
Urban India
Data was used to assess the socio economic costs and benefits of relocation and
upgrading using key variables of income, employment, expenditure, savings,
loans, etc. Severity of consequences of resettlement was ranked using seven
development professionals. An ANOVA calculation was applied to the scores to
test significance at the rate of p>0.001 and an index of severity developed. The
index was used to find the ten worst and ten least affected households from each site
to analyse differential impact of resettlement and gauge resilience for shocks.
Other statistical analysis included the Gini Coefficient, Head count Index and Sen
Index.
A two-stage analysis was completed with the collected data. Firstly, flow diagrams
were created to illustrate the general trends and outcomes under relocation and
upgrading. These diagrams became the jumping off point for discussing the impact
of relocation. Secondly, a ranking exercise of the severity of different outcomes of
relocation was conducted using 7 development professionals who allocated scores
to different consequences of resettlement according to severity. Ten worst affected
and ten least affected households in each site were identified and their data analysed
separately to gauge the impact of vulnerability of resettlement.
A financial Cost Benefit Analysis was conducted using secondary data from
government budgets and primary research. The present values of the costs (PV
(C)) and benefits (PV (B)) were calculated, from which the net present value (NPV
= PV (B) - PV (C) and the benefit-cost ratio PV (B): PV (C) of each approach were
deduced. The necessary conditions for the economic validity of the project was that
the NPV is positive (NPV>0) and the BCR greater than one.
Data Constraints
Some critical environmental costs of relocation such as resettlement on land refill
sites with high toxic elements were beyond the parameters of the present study, but
are highlighted here as critical area for further study.
Right to relocation was not built into the plan for investigations, on the assumption
that all would be rehabilitated. However, further research has illustrated that only a
small % of evicted were granted the right to relocate. This key variable was not

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
28
assessed during our data collection but is acknowledged within the study for further
research on impact on those denied relocation rights.
Study Findings
1. The People
Delhi: Prior to relocation, slum residents mostly worked as daily-wage labourers or
in ad hoc construction work, were employed privately as sweepers, domestic
workers, rickshaw pullers, vegetable vendors, etc. Post relocation households were
offered 18sqm or 12.5sqm plots of land for housing, and a mix of permanent and
semi permanent structures were found on the site depending on length of stay in the
relocated site. Provision of basic amenities was mostly temporary; water supplied
from community hand pumps and tankers, poorly maintained community toilets,
no drainage networks resulting in wastewater flows and unsanitary conditions.
Facilities such as schools and health centres were under various stages of
construction.
Mumbai: Slums in Mumbai were made up of around 350 to 400 families who lived
in largely semi permanent hutments made from tin and plastic. Most residents were
employed as daily wage labourers or engaged in small-scale home based activities,
and women worked as domestic workers in nearby residential areas. For in situ
upgrading, families were organised into a cooperative society. New housing
society was within a 2 km range of a government school, hospital and local railway
station, small and large markets for goods etc. Each family was provided a oneroom
flat measuring 225 sq m with attached toilets. Children mostly continued in
the same schools and people pursued the same livelihoods.

29
Urban India
Delhi
Eviction
Remain in slum
No right to relocate
Right to Relocate
Move into new slum area......
Keep Job 85.72% Changed Job 4.51% Lose Job 9.77%

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
30
Upgraded Settlements
Mumbai
Non-Upgraded
Settlement

31
Urban India
2. Changes in Income, Employment Patterns and Livelihood Assets
Resettled households in Delhi experienced a decrease in income of more than
Rs.1000 per month compared to non resettled houses; the decrease being most
significant for those who changed jobs in the new location (by Rs.1900pm) and
those who lost jobs (Rs.1300pm). Surprisingly, decline in income was also found
in the non-relocated sites, because families left behind were either the poorest
(renters or people who opted out of resettlement because of low affordability) or
d e p e n d e n t o n t h e
internal economy of the
settlement. In Mumbai,
average household
income in upgraded sites
at Rs.5569 per month
was 12.7% higher than
the average household
income of non-upgraded
s i t e s . U p g r a d e d
households were not
only able to continue
with their livelihoods,
but also experienced
income rises attributed
to shelter security. Per
capita incomes in Delhi
declined between Rs277
and Rs387 whereas
i n c r e a s e d f o r a l l
u p g r a d e d s i t e s i n
M u m b a i b y
R s . 7 0 0 . C h a n g e i n
Employment
Percentage
Percentage
Changes in Employment pattern after Relocation
100
80
60
40
20
0
2
5
20 19
77 75
Seasonal Daily Wage Full time
Job status
Number of earning members in relocated household dropped by 1.5% and about
12% lost their jobs. Upgraded households in Mumbai experienced a very marginal
increase in earning members by 0.4%, suggesting that as conditions improve
0
1
Lost job
Changes in Employment after Upgradation
100
80
60
40
20
0
0 0 3 6
Seasonal
Daily
Wage
90 94
Job Status
Full time
0
0
Lost job
Non-resettled
Resettled
Upgraded
Not Upgraded

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
32
number of members required to work to meet household expenses may actually go
down.
Seasonal labour in relocated households doubled to 4.9% but daily wage work
dropped due to rising distances to labour sites and fewer employment opportunities
in vicinity of new neigbourhoods. Daily wage labour decreased at upgraded sites
as well but was replaced by full-time employment that went up from 93.6% to
96.2%.
The decrease in jobs was most significant among women who were domestic
workers and could not pursue work in absence of similar/suitable employment
opportunities in the vicinity. Distance to old work sites, high transport costs, lack of
social safety nets due to an erosion of social capital in resettlement prevented
women from working. In Mumbai, share of female workers however increased
from 10 to over 17% from domestic work, daily wage and private sector
employment.
Ownership of household and livelihood assets declined following relocation.
People were forced to sell assets due to payment pressure (for plot, shifting and
house construction). Asset loss was most significant among those who changed
jobs or became unemployed. Those who kept their jobs also held on to assets
needed for the same (autos, carts etc). In Mumbai all upgraded households reported
increase in assets as compared with non-upgraded sites including ownership of
assets of production such as auto rickshaws.
3. Changes in Expenditure Patterns
Changes in expenditure patterns of relocated households point to households in
distress.
(i) Their overall expenditures reduced by about Rs.1000 per month.
(ii) Travel and health care costs increased from an average Rs.197 and Rs.123 to
Rs.432 and Rs156 per month respectively. Simultaneously spending on
education and food decreased from Rs.150 and Rs.1699 average per month to
Rs.128 and Rs.1382 respectively.

33
Urban India
(iii) Gap between income and expenditure decreased and households had less to
save or for emergencies as compared to non-relocated households that saved
an average Rs.400 per month.
(iv) Expenditures exceeded incomes by Rs.30 to Rs.170 depending on length of
stay in the new sites.
(v) Residents who changed their jobs experienced the greatest increase in
expenses at Rs.750.
In Mumbai, household
expenditures in all three
upgraded sites increased
from gentrification,
e d u c a t i o n a n d
e n t e r t a i n m e n t . I n
particular, spending on
food increased by over
Rs200 over past expenses
and was twice that in nonupgraded
areas.
Percentage
80
40
0
-40
-80
-120
-160
Changes in Household Expenditure After Relocation
(%)
Food
Clothing
Education
Travel
Health
Items of Expenditure
Electricity
Festivals etc
Total
%
change
Travel costs and modal shifts in transport were the most significant changes in
relocated households. Monthly travel spend increased by an average Rs.424 per
month, varying by distance and 119% over and above the Rs.197 per month pre
relocation. Nearly 62% resettled families reported an increase in distance to work;
the furthest being over four times from 8.1 km to 35.9 km. Those who continued
hawking and vending and depended on the local economy experienced no change.
A modal shift in transport was also noted; from walking to work place (25%) to
using the local bus (75.9%). Use of bicycles declined by 16% as work places
became distant and daily wage workers reported reduced earning hours and
incomes.
Relocation to non slummy sites was intended to improve health. Health costs on
the other hand increased among relocated households by 21% and were attributed

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
34
to ineffective water and sanitation services. Although, there was no change in
access to public health services, that to government hospitals and NGO managed
services decreased because of distance, increasing poor people's dependence on
private doctors and health costs.
Average monthly household savings of relocated households not only decreased
from Rs392 to Rs250 but were nearly Rs200 less when compared with Rs596 in
non-relocated households. Percent saving also dropped by half, from 6.91% to
3.47%. In Mumbai, 6% more households in upgraded sites (28%) saved when
compared with non-upgraded households (22%).
Table. 2: Population seeking credit in Delhi sites
Relocation also loaded families with additional costs for plot, shifting and
rebuilding unlike in Mumbai where housing was free for which families (75%)
reported borrowing from friends, relatives or private informal financial
intermediaries (38%) at exorbitant interest rates. Relocation thus pushed
households into a debt and poverty trap, however, moneylenders were still the
preferred option as they were easy to access, required little or no paper work, had no
loan ceilings and demanded no collateral. Monthly loans interest was estimated at
Rs.470.
As incomes decline, families have two options; first to reduce household
expenditure. As expenditure on vital items such as food is already low, any further
reduction can only lead to malnutrition and disease. Malnourishment in turn
reduces work participation. The second option is to meet the income deficit
through borrowing, typically from moneylenders at high interest rates. With poor
assets and depleted savings, households slip into debt traps as was seen in Delhi
where households compensated first by lowering expenditure on food and
education and later by increasing borrowings.

35
Urban India
4. Future compromised
Relocation has adversely impacted schooling. As schools were still under
construction and non-functional at the time of shifting, and children had to choose
between returning to old schools or join a private neighbourhood school. Drop out
rates more than doubled from 17.9% to 51.1% because of distance, reluctance
among children to change schools and among parents to send children far away.
Children were also needed at home to supplement incomes. Surprisingly drop out
rates increased for non-resettled families as well as NGO-managed schools shut
down. Non-resettled
f a m i l i e s b e i n g
among the poorest
possibly has children
out of school in the
first place. In
Mumbai, drop out
rates declined from
19.7% in upgraded
as against 13.3% in
non-upgraded sites.
Percentage
80
60
40
20
0
Reasons Given for Dropping Out of School
School is Too Far Away Children Don't Want to
go to New School
Social capital eroded for relocated families, increasing their sense of insecurity
(from 3% to 40%). Women were reluctant to leave children unattended in the new
sites with new neighbours. In Mumbai, social capital not only remained intact but
actually improved as residents got organized into cooperatives to facilitate
upgrading.
4. Little Improvement in Access to Physical Infrastructure
Children Needed to
Supplement Family
Income
Access to housing and basic services continued to be poor post relocation,
neutralizing the development benefits of tenurial security and tenability.

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
36
Table 3: Type of Housing in Mumbai and Delhi
Housing improvements were measured on the basis of construction material using
Census of India parameters. Temporary housing increased from 87% in nonresettled
to 96% in resettled sites. All upgraded households in Mumbai experienced
remarkable changes in housing conditions; permanent structures with in the house
basic amenities as compared with just 55% in non upgraded areas. Unlike in
upgrading, resettlement expects households to fend for themselves and those
without resources to rebuild, experience reduction in housing quality. As house
leases were issued just for 10 years, the threat of eviction persisted. Upgraded
housing in Mumbai has attracted 1.5% more renters than non-upgraded sites,
raising the spectre of gentrification and displacement of the poor.
Despite legal ownership, none of the relocated households had access to piped
water supply or toilets at home whereas nearly 25% in non-relocated sites had
illegal water supply extensions from network supplies. Covered drainage reached
just a small part of the settlement (5%) with slum like conditions starting to develop
here. Non-relocated sites on the other hand had full drainage outreach; covered
(25%) and uncovered (75%). In Mumbai, all upgraded households had in the house
piped water supply and toilets. Resettled households were provided community
t o i l e t s a n d n o
underground sewerage
for personal toilets on the
assumption that plot sizes
were too small for toilets.
Solid waste collection
services were also not
available to resettled
sites, but were reported
by over 50% in old sites.
Percentage
80
60
40
20
0
Water and Sanitation Provisions in Delhi
Piped
Water
Supply
Covered
Drains
Open
Drains
No
drains
Resettled
Not Resettled

37
Urban India
5. Who is most vulnerable
Households worst affected by relocation were those poor to start with and less
equipped to deal with the socio-economic shock. As per the Tenth Five Year Plan,
the urban poor can be classified into three groups: Core poor, Intermediate poor and
Transitional Poor. Based on the Planning Commission's estimated urban poverty
lines for 1999-2000 (Maharashtra: Rs.539.71 per capita per month, Delhi:
Rs.505.45 per capita per month) households were classified by current incomes.
The worst affected households were found to be in the 'intermediate poor' category
(average per capita monthly income, Rs.489.80) and least affected in the
transitional or non-poor group (average per capita monthly income, Rs.599.80).
Table 4: Households below poverty line in selected sites in Delhi and Mumbai
Poverty based on the vulnerability classification was found to have deepened.
Compared to non-relocated sites, the change was 10%. In Mumbai, poverty
reduced significantly following upgrading; the core poor reducing by over half, and
the intermediate poor declining dramatically from 13.85%to 3.89%; an overall
10% decline in incidence of poverty. Average monthly income in worst affected
households dropped by 3.3% (at Rs2365) but remained constant for least affected
families at Rs.3475. Primary earner and sometimes the second earner too, in the
former lost his/her job, and reported 42 days of unemployment on relocation as
compared to nil in the least affected families. Reasons for this was the low human
capital, fewer years of schooling, slim savings because of low incomes, low asset

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
38
ownership and inadequate skills to manage in new environments. Coping
strategies included sale of assets among the worst affected and withdrawal of
children from school among least affected (12%) to supplement income, possible
reason for their income status quo. This finding has long term implications on
income from less educated children.
The Sen Index of poverty was used to measure the incidence and intensity of
poverty within the group through the use of the Head Count Index and Gini
Coefficient, and supported the above findings.
The Head Count Index calculates the ratio of people living below the poverty
line where a value of zero indicates non-poor and a value of one indicates
poverty. Measures of Head Count Index suggest that poverty in upgraded
households of Mumbai had declined significantly whereas for Delhi it had
deepened following relocation.
The Gini coefficient highlighted that not only had poverty increased amongst
relocated households, but so had income inequality, which was found to be
higher than in the non-relocated sites. In Mumbai too, increases in incomes of
upgraded households were commensurate with increases in inequality and
there was the probability of some households having actually got poorer
following upgrading as house ownership meant additional expenditure on
services which were previously free, and payments for building maintenance
charges etc.
Table 5: Results of Sen Index for Delhi and Mumbai data

39
Urban India
Costs and Benefits of Resettlement
1. Benefits of Relocation
Perceived benefit of resettlement for local government is the economic value of
evacuated land for development purpose, which in turn generates employment and
economic growth. Benefits for resettled families are from legal tenure. In on-site
upgrading, benefits for residents include increased income and employment
opportunities, as well as legal tenure status. In the cost-benefit analysis, three major
benefits were calculated for far-site relocation:
(i) Land value of evacuated site for commercial/developmental use;
(ii) Revenue flow in terms of net taxes and charges to the city managers;
(iii) Employment generated from the development projects in the evacuated sites.
The main benefits for on-site upgradation were
(i) Increased income to households;
(ii) Self-investment by families reducing investments by government on
relocation projects.
Land value of evacuated site: The land values of evacuated sites were estimated.
Prior to relocation households were occupying an estimated 21.7sq.m. area but got
18 sq. m or 12.5 sq. m plots of the 50 sq.m. per household designed in the
resettlement scheme, the balance being used for roads, parks, common services,
etc. Costs for resettlement have therefore been estimated at 50sq.mts. Average
number of households relocated in Delhi in 1999-2000 and 2003-04 was an
estimated 7868 per year. The land value of the evacuated areas as per real estate
estimates is very high as these are prime areas in the city and estimated at
Rs.21531.08 per sq. m (Rs.21.53Crore/hectare). For a single relocated household,
the value of evacuated land is Rs.467,000 (i.e.Rs.21531.08/sq.m * 21.7 sq. m).
Net taxes and charges: The evacuated land can be successfully commercialised
with revenue to the city in terms of taxes and charges for civic amenities. It is
assumed that one percent of land value of evacuated land can be generated as net
taxes and charges from development projects. This has been estimated as Rs.4670
per hectare.

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
40
Employment Generation: Development projects on evacuated land can provide
employment opportunities. It is assumed that about 200 people can get employment
from one hectare of evacuated land from suitable development projects or
commercial activities. The income generated from such activities has been
estimated as Rs.600,000 per hectare per year. From the evacuated land of one
relocated household this income is about Rs.10,890 per year.
2. Benefits of Upgrading
Household incomes in Mumbai had increased by an average 12.7%. If resettlement
in Delhi had been through onsite upgrading it is assumed that household incomes
would have increased in the same proportion. The average household income of
non-relocated households in Delhi was estimated as Rs.3674.6 per month and
expected to increase by Rs.466.67 per month per household, or approximately
Rs.5600 per household per year if upgraded.
Table. 6: Estimated benefits of relocation for one household in Delhi
3. Costs of Resettlement
The cost of resettlement is often underestimated and excludes social costs and those
incurred by each relocated household as also the impact of displacement on the city
economy. In this study, costs of resettlement were estimated for government and
residents to understand the economic viability of relocation given below.

41
Urban India
Table 7: Estimated Cost of Relocation of selected items for one household
in Delhi (at 2004 prices)
Cost of procurement of land for relocation: Land for relocation is usually
purchased at sites far away from the city centres, where it is cheaper. Average land
value was estimated as Rs.8.36 crores per hectare or Rs 418,000 per relocated
family at 50sq.m.
Civic amenities: Delhi's resettlement plan provides Rs.10,000 per plot for civic
amenities, land owing agencies contribute Rs.29,000 per plot for 18 sq.mt and
Rs.20,000 for 12.5 sq.mt; contributions from beneficiaries is fixed at Rs5000 for
both sizes. Total spending on amenities for 18 and 12.5 sq.m plots is Rs.44,000 and
Rs.35,000 respectively. From official information, cost for civic amenities was
estimated at Rs.40,000 per household.
Other costs: Other costs in the cost-benefit analysis are summarized in table 8 and
include mainly income and expenditure analysis of households. The non-recurring
cost for house and related relocation costs such as shifting costs, etc. has been
calculated as Rs.68445 per household. The cost of providing a bus service was
estimated at Rs.2628 per household per year at Rs.30 per km and a minimum 4 trips

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
42
are assumed. Losses per month per household from lower Incomes are estimated as
Rs.1182.5, additional travel as Rs.226.9, additional health care at Rs.33 and loss of
savings at Rs.142.79. Further, it is likely that relocation costs will be higher than
presented in this analysis as we were unable to acquire data for costs such as
administration, consultation and area surveys, compensation or resettlement cost
(costs that should be paid to residents to resettle).
4. Cost-Benefit Analysis
A cost-benefit analysis was applied to costs and benefits above. Two scenarios were
considered:
Scenario I: Resettlement with relocation and utilizing evacuated land for
development/ commercial purposes.
Scenario II: Resettlement with onsite upgrading on 60% land, utilizing the
remaining 40% for development/commercial purposes.
Benefits and costs were estimated /projected over a period of 10 years starting from
2004. The present values of costs and benefits were worked out with the real
interest rate of 8 per cent, the difference between the social discount rate (12%) and
the rate of inflation (4%). The Net Present Value (NPV) and Benefit Cost Ratio
(BCR) were calculated to determine the economic viability of the resettlement
project. In order for a particular scenario to be economically viable, the NPV is
required to be positive (i.e. NPV >0) and the BCR greater than one (BCR >1).
For far-site relocation the present value of benefits was calculated at Rs.5,80,000
per household, and the cost at Rs.10,16,000 per household, giving a NPV of 4.35
and BCR 0.57. This suggests that relocation is not an economically viable option.
In the case of onsite upgrading, the present value of benefits was Rs.2,69,000 per
household and costs were Rs.2,57,000 per households, giving a positive NPV of
0.51 and a BCR of 1.24. This suggests this option is a more economically viable
approach.

43
Urban India
Table 8: Case I: Benefit-cost Analysis of relocation with development project in the evacuated site.

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
44
Table 9: Case II: BCA with the option of onsite up-gradation of resettlement in Delhi.

45
Urban India
Table 10: Cost-Benefit Analysis of Resettlement options
Note: Present values are estimated at 8 percent real interest rate for a period of 10 years
{Real Interest rate (8%)= Social Discount rate (12%)-Rate of Inflation (4%)}

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
46
Conclusions
Far site resettlement is significantly more costly for residents than on-site
upgrading. Whilst benefits for government authorities are less in upgrading
schemes, the significantly lower costs for government and residents in this make
this a preferable option. The cost of resettlement was very high for residents and
resulted in loss of jobs, decreases in income, increases in expenditures, loss of
assets and termination of education; invisible costs that will impact city economy in
the long term.
Poor employment opportunities in resettlement areas, particularly among women,
are high. Minimal requirements for continuation of work among women after
resettlement (travel, safety, child care) had led to a decrease in the proportion of
women working with possible disempowerment. This has huge long term
implications in a gender-biased society and among the poor.
Reduction in full time employment in resettled areas or loss of jobs, substantial
increases in travel expenses from increased distance to work sites, severe mismatch
between skills and employment opportunities mean tremendous hardships for
families which require minimum of 5 years to overcome. The significant impact is
on environment through increases in use of personal vehicles and extensions of
transport networks to far away areas.
Relocation also leaves a void in the inner city areas and affects the city economy as
informal services and daily wages get more expensive. Demand draws new
slumdwellers into vacated areas and or resettled families to move back into other
slums. The failure of the policy to acknowledge the critical link between slum
dwellers and the informal sector, upon which the city economy relies, is inherent in
the shortcomings of resettlement policy. Successful slum development plans must
link housing with employment arrangements. Increased spending on health from
inadequate water and sanitation services, malnutrition and non-availability of
government health services suggests that benefits of tenure security may in fact be
nullified.
Negative impact on education with a 50% increase in drop out rates so that children

47
Urban India
could supplement family incomes when contrasted with better school attendance at
upgraded Mumbai sites has long term implications; of low human capital
development among the poorest and their ability to break the poverty cycle. The
consequences of resettlement are felt more so by those who remain behind. Credit
from private moneylenders pushes households into poverty and debt traps, and the
informal nature of private money-lending arrangements can dis-inherit the poor
through unrealistic debt repayment schedules.
Upgrading is a win-win option for the local government and households.
Governments at the national, state and city level need to recognize the benefit of
upgrading and ensure that this is the primary option for slum development.
Relocation should be conditional and undertaken only if absolutely essential and
city renewal should not be seen as a valid reason for relocation.

Economics of Resettling Low-income Settlements (Slums) in
Urban Areas: A Case for On-site Upgrading
48
Bibliography
1) CURE-DJB-WSP, 2005, Draft Report on Status of water and sanitation
services in urban poor communities of Delhi.
2) Delhi Development Authority, 1990, Perspective Master Plan for Delhi 2001,
New Delhi.
3) Delhi Development Authority, 2000, Report of the Sub-Group on Population
Projections and Demographic Profile for Preparation of Master Plan for
Delhi - 2021, New Delhi.
4) Government of India, 2001, Poverty Estimates for 1999-2000, Press
Information Bureau, 22 February: New Delhi.
5) Government of India, 1997, White paper on Pollution in Delhi, Ministry of
Environment and Forests.
6) Government of National Capital Territory of Delhi, 1997, Problems and Issues
Relating to Rehabilitation of Slum Dwellers in Delhi, Report of the Expert
Group: New Delhi.
7) Jhabvala, R, 1997, Employment and Income in the Unorganised Sector:
Implications for policy. In R. Sudarshan (Ed.). Gender Employment and
Health: Perspectives from India and Sri Lanka. pp. 31-61, National Applied
Economic Research: New Delhi.
8) Khosla, R, 2003, Community Women Leaders in the Urban Basic Services for
the Poor Programme: an Empirical Study, PhD Dissertation,
9) Khosla, R, 2000, Women and Sanitation: The Urban Reality, Experiences of
Government Programmes, NGOs and CBOs, Social Change: Issues and
Perspectives, Journal of the Council for Social Development, Vol.30, No.1&2,
192-207.
10) Kundu, A, and Sharma, A.N. 2001, Informal Sector in India. Institute for
Human Development and Institute for Applied Manpower research, New
Delhi.
11) Kundu, A, 1994, Employment- Poverty Linkage in Urban Areas, Centre for the
Study of Regional development, JNU, ARTEP/ILO.
12) Ministry of Urban Development, 2001, Reducing Urban Poverty in India,
NIUA , New Delhi.
13) Mitra, A, Growth and Employment Relations, National Seminar on Economic
Reforms and Employment in Indian Economy

49
Urban India
14) Municipal Corporation of Delhi, Study of Socio-Economic Survey of the
Slum Dwellers in 19 JJ Clusters covered under the Survey of Shalimar Bagh
Constituency, New Delhi
15) Natarajan, K.S. Population Projections for National Capital Region 1996-
2021, New Delhi
16) National Capital Region Planning Board, 1999, Delhi 1999 - A Fact Sheet,
New Delhi.
17) National Sample Survey Organisation, 2000, Non-Agricultural Enterprises in
the Informal Sector in India, 1999-2000, (NSS 55th Round), New Delhi.
18) Roy, D, 2000, Sanjha Manch, Hazard Centre, New Delhi.
19) Sastry, N.S. 2002, Preservation Of Micro Data On Informal Economy At
National Level: Case Study Of India , Paper presented during International
Labour Conference, Geneva.
20) Sparc, 1985, We the invisible: A census of pavement dwellers, Mumbai.
21) Srivastava, Rahul. “The informal sector and urban poverty” [Online]
Available, January 2005

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
50
Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
Anita Rath
Abstract
th
74 Constitutional Amendment Act has widened the functional domain of civic
bodies. However, their fiscal duress has not been eased out and the intergovernmental
fiscal framework continues to gravitate towards higher level of
governments. Fiscal divide of the cities, wherein some rely heavily on intergovernmental
transfers while others enjoy comfortable fiscal position, is quite
conspicuous. In this context, it is pertinent to review the fiscal nuances of
Municipal Corporation of Greater Mumbai (MCGM), which belongs to the latter
cohort. MCGM is the largest civic body in the country whose fiscal magnitude
even exceeds that of some states in India. MCGM relies completely on its own
sources of revenue and demonstrates fiscal surplus in its accounts. However, there
are issues with its apparent fiscal composure. It has access to a forbidden source of
revenue, the octroi, and there is perpetual negligence of capital expenditure. This
paper underscores key issues related to the finances of MCGM.
________________________________________________________________
Civic finance in India remains a matter of concern. It assumes significance as on the
one hand, the pace and pattern of urbanization is unprecedented while on the other,
there is absence of any well defined arrangement for the devolution of funds to civic
bodies. The fiscal divide of the civic bodies is quite conspicuous in such a scenario.
Not only is there vertical inequity in terms of larger and smaller bodies having very
different level of fiscal autonomy, but also horizontal inequity remains a
contemporary reality, wherein civic bodies of similar size confront different fiscal
situation. There could be a host of factors contributing to the relative fiscal
autonomy of these civic bodies. Not much is also known about the fiscal behavior
of civic bodies. A study of civic finance, which can provide useful insights on these
issues, is greatly constrained by the non-availability of reliable information. In such
a scenario, case studies of certain local bodies which stand out in terms of their

51 Urban India
fiscal position would be useful. The Municipal Corporation of Greater Mumbai
(MCGM) offers an interesting case for study from this perspective.
At the outset, some stylized facts about the fiscal situation of MCGM are presented.
MCGM is the largest local body in terms of its fiscal score. As per the Budget
Statement of the current financial year 2009-10, its total expenditure is Rs. 20,000
crores (budget estimates, excluding that of Brihanmumbai Electric Supply and
Transport-BEST, a subsidiary of MCGM). Again, MCGM's revenue income
constitutes almost two-thirds of the total revenue income of all Municipal
1
Corporations in the state. Interestingly, its fiscal magnitude also surpasses that of
2
some of the states in India. Its per capita revenue income exceeds that of the state,
i.e. Maharashtra. It is worth reckoning that MCGM maintains this high fiscal
profile through mainly its own sources of revenue.
There are issues with the finances of MCGM despite this apparent fiscal composure
as indicated by an earlier study (Rath, 2008). The current paper considers these
issues by extending the scope of the analysis and by incorporating the latest
information. The scheme of presentation of the paper is as follows. An orientation
to the structure of MCGM's budget and its fiscal profile is attempted in the first
section. Subsequently, major fiscal indicators of the Corporation are analysed. This
constitutes a discussion on revenue effort, fiscal balance, fiscal marksmanship, and
fiscal autonomy. Final observations are outlined in the last section.
I
Structure of the Budget and Basic Fiscal Profile
MCGM initiated the processes of budgetary reform in 2005 for converting the Cash
Based Double Entry Accounting System into Accrual Based Double Entry
Accounting System in accordance with the principles, procedures and formats
specified in the National Municipal Accounts Manual as circulated by the
Government of India, and as per the guidelines issued by the Comptroller and
Accountant General. Budget statements for MCGM since 2007-08 have adopted
this new format. MCGM also presents outcome-based budget estimates now,
indicating the physical outcomes expected out of various budgetary provisions.
MCGM has also taken some initiatives for gender budgeting in recent years. Due to

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
52
all these changes, Outline of Civic Finance, one of the key financial documents of
MCGM, has been discontinued since 2006-07 and the Budget Document remains
the sole source of information on the finances of the Corporation since 2007-08.
An orientation to various sub-budgets of MCGM is in order prior to any
deliberation on its fiscal situation. The overall budget of MCGM is divided into six
sub-budgets. Though, all individual budgets are not self contained and there are
inter-budget flows, there is segregation of important functional domain. These subbudgets
are Budget A (General Administration), B (Improvement Schemes), E
(Education Fund), G (Water and Sewerage), C (Brihanmumbai Electric Supply and
Transport B.E.S.T.) and Tree Authority Budget (T.A.). Table 1 reveals the fiscal
details of these sub-budgets. This paper considers all budgets except the budget of
BEST (C) for the analysis. This selection seems appropriate due to two reasons.
Firstly, BEST is almost a separate entity and its budget is prepared and presented
independently. Secondly, supply of electricity and provision of transport facility
are not the common functional domain of other local bodies and thus, this selection
facilitates a comparison of the fiscal performance of MCGM with other
Corporations.
Significance of various sub-budgets in the total expenditure of the Corporation can
be deciphered from Table 2. Figure 1A provides the graphical exposition of the
inter-budget comparison of the fiscal share. It shows that Budget A and C have
almost equal share (around 40%) in total expenditure and G accounts for around
one-eighth. Education fund (E) has an expenditure of 7 per cent in the total. Budget
B and T.A. jointly account for around 2 per cent of the total allocation. As regards
the capital expenditure, Budget A and G account for around 40 per cent each in the
total capital expenses incurred by MCGM during this period. Around 12 per cent is
spent by B.E.S.T. towards its capital expenses. Figure 1 shows the comparative
position of sub-budgets excluding BEST, which suggests that the share of Budget A
is almost two-third of the total revenue expenditure of the rest. Thus, Budget A, G
and C are important in terms of their share in the overall fiscal scenario of MCGM.
An analysis of sources of revenue income of the Corporation for the period 2002-03
to 2006-07, indicates that octroi is the single most important source of revenue
income. On an average, around 45 per cent of the total income accrues from octroi

53 Urban India
(Table 3). Property tax contributes to 13 to 14 per cent (excluding G-Budget taxes
like water and Sewerage taxes which are levied on property tax base for properties
without water meter). Water and sewerage tariff and taxes contribute to around a
quarter of the total revenue income.
It is worthwhile to note here that the G-Budget gets around 50 per cent of its income
from charges as per meter reading, 30 to 35 per cent from taxes and 10 to 15 per cent
from miscellaneous sources. The tax component is levied on the rateable value, the
base of property tax. Thus, the total contribution from property tax (exclusive of
government taxes) is around 25 per cent. This suggests that the two major sources
of revenue, i.e. octroi and property tax, jointly contribute more than two-third of the
total revenue income of the Corporation. Annual growth rate of property tax is the
same as that of total revenue income during this period (12.5%) while the growth
rate of octroi is higher (13.5%).
A similar analysis for capital accounts (for A, B, E and G budgets and for the same
five year period) reveals that around 80 per cent accrue from transfers from revenue
account and less than 5 per cent are raised through loans. The share contributed
from the revenue account is much higher in case of G-budget (90%).
MCGM is involved in a wide array of civic functions. An activity-wise break up of
the revenue expenditure (average for recent three years: 2001-02 to 2003-04)
shows that the major heads of expenditure are water and sewerage activities,
management of solid waste and storm water drains, and the social sector. Education
and health jointly account for around a quarter of the total revenue expenditure.
Expenditure on water and sewerage constitute around 20 per cent of the total.
Expenses on solid waste management and storm water drains jointly involve more
than 10 per cent of the total expenditure.
It is important to discern the share of employee cost and debt charges in the total
expenditure. Expenditure on wages and debt charges (excluding Budget C), on an
average, constitute 50 per cent and 11 per cent of total revenue expenditure
respectively during 2002-03 to 2004-05 (see Figure 2). Thus, less than two-fifth of
the total revenue expenditure is actually spent on operation and maintenance. It is
worthwhile to mention here that the wage bill for Budget E is the highest with

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
54
almost three-fourth of the total expenditure spent on employees. In case of Budgets
A and C it is around 50 per cent and 25 per cent respectively. Around 50 per cent is
allocated for employee cost and debt charges in case of Budget G. Table 4, which
presents a different break up of revenue expenditure for the period 2002-03 to
2006-07, reveals that total establishment expenditure is around 53 per cent and the
actual maintenance expenditure is about 15 per cent.
II
Fiscal Prudence
This section analyses the overall fiscal performance of the Corporation. Various
measures considered here are revenue effort, fiscal balance, fiscal marksmanship
and fiscal autonomy. Revenue effort indicates how successful MCGM has been in
raising revenue proportionate to the economic progress of the region. The fiscal
balance measures unravel the fiscal solvency of the Corporation as per various
accounting procedures. Fiscal marksmanship, the third indicator, reveals the
transparency and effectiveness of budget preparation exercise by way of showing
the gap between the budgeted and actual figures. Finally, a discussion on fiscal
autonomy of MCGM underscores some issues with its major revenue instruments.
2. 1 Revenue Effort
MCGM's revenue income has kept pace with the changing economic scenario of
the district. A comparison between the revenue proceeds of the MCGM and the Net
District Domestic Product (NDDP) of Greater Mumbai makes this fact apparent.
The revenue receipt of MCGM was 5.6 per cent of NDDP of Greater Mumbai in
3
1993-94. It has now improved to become 8.5 per cent in 2006-07 (see Figure 3) . In
the first 7 years up until 1999-2000 this share, on an average, has only been 5.8 per
cent, however, in the subsequent 7 year period it has gone up to 8 per cent. During
1993-94 to 2006-07, NDDP of Greater Mumbai grew at an annual trend rate of 8.7
per cent where as the revenue income of the Corporation (exclusive of C) grew at
12.4 per cent. Thus, the pace of growth of revenue income of the Corporation is
faster than that of NDDP. This is also reflected in the elasticity of the revenue
income of MCGM with respect to NDDP during this period, which is 1.36.

55 Urban India
A perusal of Figure 3, however, reveals that the growing percentage of MCGM's
revenue in NDDP has not been quite steady over the reference period. There is an
upward shift in the trend in the year 2000-01, when MCGM's revenue as a
percentage of NDDP was the highest (8.6%). Almost 60 per cent of this increase in
the revenue receipts over the previous year is due to the increase in the proceeds
from the octroi (40%) and property tax (20%). Hike in the rates of both property tax
and the octroi during this period has contributed mainly to this increased returns.
2.2 Fiscal Balance
Different deficit indicators are used here to decipher the fiscal health of the
Corporation. These are revenue, conventional and fiscal deficit. Revenue Deficit
indicates the hiatus between receipts and expenditures in the revenue accounts.
Conventional deficit is the overall surplus or deficit and equals the difference
between total expenditure and total receipts (both revenue and capital). Fiscal
deficit indicates the gap between total expenditure (revenue and capital) and the
total of revenue receipts and other non-debt creating receipts (capital receipts net of
debt). Table 5 presents detailed information in this regard for the period 1991-92 to
2006-07. It can be observed that MCGM maintains surplus in its revenue account
all through except for one year. It also has conventional surplus in 13 out of this 16
year period. However, as per the fiscal deficit measure, one finds deficits in the first
nine years and surplus subsequently (see Figure 4). It reveals that the debt
component constitutes an important part of the capital account till 2001-02 (80%),
however, in the next five year period the reliance on debt for capital account is quite
low (14%).
Municipal investment expenditures are crucial in shaping the infrastructure of the
city. It is more than 40 per cent of the total municipal expenditure in countries like
Portugal, Slovenia and Czech Republic, and more than 30 per cent in case of
Switzerland, Slovakia and Ireland (Bailey, 1999). For a megalopolis like Greater
Mumbai, the crucial role of the Corporation's investment expenditure needs no
emphasis. The state of capital expenditure of MCGM has been a major concern as
revealed in the earlier work which considered 13 year period from 1991-92 to 2003-
04 (Rath, 2008). It noted that growth rate of the per capita capital expenditure (real)
was virtually zero during this period. The share of capital expenditure in total

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
56
expenditure was consistently falling and on an average, more than two-fifths of the
budgeted capital expenditure was never spent. Here, the analysis is extended by
including latest three years and thus it pertains to 16 year period from 1991-1992 to
2006-07. The capital expenditure has got some boost in the last two years. It can be
noticed from Table 5 that the annual change in capital expenditure in 2005-06 and
2006-07 over the previous years has been around 70 and 45 per cent respectively.
The growth of per capita expenditure in current prices (1991-92 to 2006-07)
presented in Figure 5 reveals that after a long stagnancy in capital expenditure it has
only now taken an upward movement since 2005-06. This is reflected in the slightly
higher growth rate of capital expenditure during this 16 year period. It can be
observed from Table 5 that the annual trend growth rate of revenue and capital
expenditure in current prices are 12.2 and 10.2 per cent respectively during this
period. After accounting for the escalation in cost of living indices and the growing
population, annual trend growth rate in per capita (real) revenue and capital
expenditure are 4.0 and 1.9 per cent respectively.
The share of capital expenditure in total, which has been declining consistently, has
shown some positive improvement in the last two years. This trend is explicit in the
Figure 6. Capital expenditure was 24.3% of the total expenditure in 1991-92. Since
then it has been declining continuously and became 12.5 per cent in 2004-05. The
capital expenditure has picked up since 2005-06 and its share in total expenditure is
22 per cent in 2006-07. Despite these positive trends, severe pruning of the
budgeted capital expenditure has been happening undeterred as would be revealed
in the subsequent discussion.
2.4 Fiscal Marksmanship
Another indicator of fiscal prudence, the fiscal marksmanship, demonstrates how
far the budgeted targets are actually realized. It shows the transparency as well as
effectiveness of the budget preparation exercise (see Karnik, 2002). The relevant
information in this regard is furnished in the Table 6.
In case of revenue expenditure, it can be observed that the gaps are very much
within limits except for 2000-01 and 2001-02 (see Fig 7). However, in case of
capital accounts one observes a huge gap between the actual and the budgeted

57 Urban India
figures (see Fig 8). From the Table 3 it can be deciphered that the gap between the
two is not only huge but also it is increasing. It shows that almost half of the total
budgeted capital expenditure during this ten year period is never incurred.
It is important to note that there would have been deficits in all the years during the
reference period (1997-98 to 2006-07) had the budgeted capital expenditure were
actually incurred. There is fiscal surplus on the aggregate during this ten year
period. If the budgeted capital expenditure were actually incurred there would have
been a fiscal deficit to the tune of 10 per cent of the total expenditure as against a
surplus of 6 per cent during this period.
2.4 Fiscal Autonomy
Fiscal autonomy of the civic bodies are greatly circumscribed by the access to
productive own sources of revenue. Bahl and Linn (1992) in their comprehensive
work on urban finance observe, “[C] changes in locally raised resources determine
the ability of an urban government to expand its services. Where locally raised
revenues fare badly, urban government expenditure suffers, where they do well,
urban expenditure thrives” (p. 43). MCGM is doing well on this front as almost cent
per cent of its revenue are self-generated. As can be found from the Table 3 that
MCGM's reliance on the grants is limited to around 2 to 3 per cent of its total
revenue income.
MCGM demonstrates a case of high fiscal autonomy. However, there are
contentious issues associated with its major revenue sources. It is raising almost a
half of its revenue income from octroi, which is one of the most contentious taxes of
the local bodies. Being the economic capital of the country and a mega
consumption centre, octroi remains a perennial source of revenue in a city like
Greater Mumbai. The state has abolished it in the municipal councils and have
announced for its abolition in 15 municipal Corporations. MCGM has somehow
successfully managed to maintain the status quo. The fiscal autonomy of the city
would seriously suffer in its absence, a danger which always hovers around with the
talk of its abolition time and again (see Rath, 2009).
Rental value based property tax system in Greater Mumbai is shrouded in

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
58
controversies. The property tax rates for residential and non-residential properties
in Greater Mumbai (without water meter) are as high as 187.5 per cent and 320.5
per cent respectively. The base of the property tax remains non-buoyant as most of
the properties in the main city are under the Rent Control Act and the reassessment
of other existing properties is quite infrequent. By imposing high tax rates and
construction activities, the Corporation has successfully managed to utilize
property tax as a residual source of revenue despite the frozen base. However,
issues related equity and efficiency of the system are paramount (see Karnik et al.,
2004). The inequity of the system has actually perpetuated by the Corporation's
effectiveness in extracting revenue by raising tax rates beyond any limits. Inequity
in the property tax system, subjectivity of assessment and lack of periodic revision
of the base are certainly issues that warrant immediate attention.
Greater perspicacity is needed in identifying fiscal instruments for local bodies.
Federalism is known to facilitate experimentation of innovative practices and that
is how 'laboratory federalism' has become the part of the vocabulary (Osborne,
1988; Oates, 1999). Locating other fiscal avenues like expansion of scope of user
charges and bringing about fiscal reforms are the options which MCGM need to
explore.
III
Concluding Observations
MCGM has a comfortable fiscal position as demonstrated by its complete reliance
on own sources of revenue, fiscal surpluses in its accounts, and the higher pace of
growth of its income vis-à-vis the NDDP of Greater Mumbai. However, a matter of
serious concern is the state of its capital expenditure. Barring the last two years in
the reference period, i.e. 2005-06 and 2006-07, the pace of growth of per capita
capital expenditure in the last 14 year period has been negligible and there has been
a steep fall in the share of capital expenditure in the total expenditure. Moreover,
hardly half of the budgeted capital expenditure was actually spent during 1997-98
to 2006-07. The surpluses in MCGM's accounts would have vanished and there
would have been deficits to the tune of 10 per cent of total expenditure during this
reference period had the budgeted capital expenditure were actually spent.

59 Urban India
A perusal of major sources of revenue of MCGM suggests that it continues with the
old, archaic system following the adage 'an old tax is a good tax'. Octroi, the
controversial source of revenue which has been abolished across the country,
certainly is the sole reason for its fiscal comfort. Despite several clarion calls for its
abolition, MCGM has no plan for its easy phase out; rather significant investment
has gone into strengthening the octroi system in recent years. Property tax, the other
major source of income, provides residual revenue to the Corporation. However,
there are serious issues regarding the equity and efficiency aspects of the property
tax system. Thus, MCGM's finances do not demonstrate a case of good economic
logic.
A discussion on the finances of civic bodies can not ignore their expenditure
profile, especially when, governments are driven by leviathan motive and invest in
many pork barrel projects. Hopefully, budgetary reforms initiated now would
render this largest civic body more fiscally responsive.
The analysis of the finances of MCGM provides some important insights into the
issues of civic finance, which are not parochial. It underscores the aspect of
political economy of fiscal federalism influencing the relative fiscal status of civic
bodies. It also raises concerns about the fiscal responsibility of these local bodies.

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
60
Endnote:
1 Calculated from the information provided in Handbook of Basic Statistics of
Maharashtra State, 2000, Directorate of Economics and Statistics,
Maharashtra
2 The revenue expenditure of MCGM was Rs. 7120 crs in 2007-08 (Exclusive of
the Budget of BEST-Brihanmumbai Electric Supply and Transport). It exceeds
the revenue expenditure of 9 states for that year.. These states are Arunachal
Pradesh, Goa, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and
Uttaranchal. Its total expenditure (inclusive of capital) exceeds that of four
states: Goa, Manipur, Nagaland and Sikkim (Source: MCGM for Expenditure
of MCGM; RBI, 2008 for state level expenditure- revised figures).
3 Information on the NDDP was collected from Directorate of economics and
Statistics, Government of Maharashtra. NDDP figures are as per 1999-2000
series; these figures are provisional for the period 1999-00 to 2005-06 and
preliminary for the years 2006-07.

61 Urban India
References
Bahl, R. W. and Linn, J.F. (1992), Urban Public Finance in Developing Countries,
Oxford University Press, New York.
Bailey, Stephen J. (1999), Local Government Economics: Principles and Practice,
Macmillan Press Ltd, Hampshire and London.
GOM (Government of Maharashtra), (Various Years), District Domestic Product of
Maharashtra, Directorate of Economics and Statistics, Mumbai.
GOM (Government of Maharashtra), (Various Years), Economic Survey of
Maharashtra, Directorate of Economics and Statistics, Mumbai.
Karnik, Ajit (2002), Ready for Second Generation Reforms An Evaluation of
Progress Made by Maharashtra, in: Institute of Applied Manpower Research, ed.,
Reform and Employment, Concept, New Delhi.
Karnik, Ajit; Rath, Anita and Sharma, J.C. (2004), Reforming Property Tax
System: Simulated Results for Mumbai City, Economic and Political Weekly, Vol.
XXXIX, No. 34, 3818-26.
MCGM (Municipal Corporation of Greater Mumbai), (Various Years), Outline of
Civic Finance, MCGM, Mumbai.
Oates, W.E. (1999), An Essay on Fiscal Federalism, Journal of Economic
Literature, Vol. XXXVII, 1120-1149.
Osborne, David (1988), Laboratories of Democracy, Harvard Business School
Press, Boston.
Rath, Anita (2008), City Governments and Fiscal Responsibility: A Study of
Greater Mumbai, Occasional Paper of Bombay Geographical Association, No. 3,
13-24.

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
62
………….. (2009), Octroi-A Tax in a Time Warp: What its Removal Implies for
Greater Mumbai, Economic and Political Weekly, Vol. XLIV, No.25, 86-93.
RBI (2005), State Finances A Study of Budgets, Reserve Bank of India, Mumbai.
Tables
Table 1: Fiscal Details of various Sub-Budgets of MCGM
Source: Compilation based on Information provided in MCGM,
Outline of Civic Finance
Table 2: Comparative Budget-wise Fiscal Position: 2001-02 to 2004-05
(Excluding Inter-budget contributions)
Source: MCGM, Outline of Civic Finance, Various Years

63 Urban India
Table 3: Sources of Revenue Income
(Budget A,B,E & G- Excluding Inter-budget Contributions)
(Rs. in Crores)
Source: Budget Section, MCGM
Table 4: Major Heads of Revenue Expenditure
(Budget A,B,E & G- Excluding Inter-budget Contributions)
(Rs. in Crores)
Note: *Also includes Administrative Expenditure
Source: Budget Section, MCGM

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
64
Table 5: Major Fiscal Indicators of MCGM: 1991-92 to 2006-07 (Actual; Exclusive of Budget C)
(Rs. in crores)
Notes: $Excludes inter-budget contributions.
* Capital receipts and capital expenditures are for Budgets A, B, E and G; T.A has no capital account. Capital Receipts include receipts from the revenue accounts.
# Growth rates (annual trend) are calculated for the period 1991-92 to 2006-07. Figures in parentheses represent the growth rate of the relevant series in real terms. The
Consumer Price Index for Urban Non Manual Employees (CPINM) is used for converting these series in constant prices of 1991-92. Information on CPINM was
collected from GoM, Economic Survey of Maharshtra, Various Years.
1. Revenue Deficit is the difference between revenue expenditure and revenue receipts
2. Conventional Deficit is the overall surplus or deficit and equals the difference between total expenditure (revenue and capital) and total receipts (revenue and capital)
3. Fiscal Deficit is the difference between total expenditure (revenue and capital) and the aggregation of revenue receipts and other non-debt creating receipts (capital
receipts net of debt); the loan component for Budget A and G are only considered for calculating the fiscal deficit for 1991-92 to 1995-96, hence, deficit could be on the
lower side; for other years it includes the loan component for all 4 budgets.
4. Positive sign indicates surplus; Negative sign indicates deficits
Source: MCGM, Outline of Civic Finance, Various Years (up to 2004-05); Budget Documents and Information from Budget Section, MCGM for 2005-06 and 2006-07.

65 Urban India
Table 6: Fiscal Marksmanship*#
Notes: *Exclusive of Budget C and in case of capital expenditure it is for A, B, E and G
as T.A. has no capital account; # Difference between actual and budget estimate as a
percentage of budget estimate; Source: Same as Table 5.
Figures
C
38%

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
66

67 Urban India

Fiscal Performance of Civic Bodies: The Greater
Mumbai Perspective
68

69 Urban India
Endnotes :
1. Calculated from the information provided in Handbook of Basic Statistics of
Maharashtra State, 2000, Directorate of Economics and Statistics,
Maharashtra.
2. The revenue expenditure of MCGM was Rs. 7120 crs in 2007-08 (Exclusive of
the Budget of BEST-Brihanmumbai Electric Supply and Transport). It exceeds
the revenue expenditure of 9 states for that year.. These states are Arunachal
Pradesh, Goa, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and
Uttaranchal. Its total expenditure (inclusive of capital) exceeds that of four
states: Goa, Manipur, Nagaland and Sikkim (Source: MCGM for Expenditure
of MCGM; RBI, 2008 for state level expenditure- revised figures).
3. Information on the NDDP was collected from Directorate of economics and
Statistics, Government of Maharashtra. NDDP figures are as per 1999-2000
series; these figures are provisional for the period 1999-00 to 2005-06 and
preliminary for the years 2006-07.

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
70
Security of Tenure of Urban Poor Settlements:
Trends and Experiences
Natraj Kranthi
Doctoral Research Scholar, Jawaharlal Nehru Architecture & Fine Arts
University, Masab Tank, Hyderabad.
Kavita Daryani Rao
Director of Evaluation i/c, Jawaharlal Nehru Architecture & Fine Arts
University, Masab Tank, Hyderabad.
Abstract
This paper is a scholastic attempt to comprehend the international and national
trends and experiences of tenure security pertaining to urban poor settlements. It
explores and reviews different approaches adopted across different countries
around the world in diverse conditions. Besides, it discusses the strategies and
results of these approaches. The paper presents a critical review of nine
international cases including Cambodia, Sao Paulo-Brazil, Recife-Brazil,
Thailand, Philippines, Namibia, Indonesia, Peru and Kenya; and five national
cases including Kolkata, Ahmedabad, Mumbai, Delhi and Hyderabad. Further, it
identifies the best practices and summarizes them into four broad categories which
include (1). Tenure security against eviction by force, (2). Incremental and flexible
approaches, (3). Collaborative and participatory approaches, and (4).
Regularization.
________________________________________________________________
1.0 INTRODUCTION
Security of tenure, especially in the context of the urban poor, has been defined and
interpreted in a number of ways the world over by various international
organizations, as it involves a variety of related issues attached to it. According to
the UNCHS, tenure security is defined as, (i) protection against eviction; (ii) the
possibility of selling, and transferring rights through inheritance; (iii) the

71
Urban India
possibility... (of having a)... mortgage, and access to credit under certain
conditions (UNCHS, 1997).
During UN-HABITAT Expert Group Meeting on Urban Indicators in October
2002, secure tenure was defined as: the right of all individuals and groups to
effective protection by the state against forced evictions. UN-HABITAT regards
security of tenure as a strategic entry point rather than as a panacea to poverty
reduction. In practical terms for the individual slum dweller, security of tenure
translates into a degree of certainty that can motivate investment of own resources
for the purpose of improving shelter and services. In some cases, a certificate of
right or temporary occupancy can serve as an instrument for making claims on
public resources or negotiating with state authorities for access to basic services.
Secure tenure may also legitimize land or structures on that land as forms of
collateral for credit, and therefore investment (UN-Habitat, 2002).
2.0 SECURITY OF TENURE: INTERNATIONAL TRENDS
In 1990s, tenure security in urban areas has emerged as one of the challenges in
urban land management and has been identified as one of the major issues
concerning the urban poor. Land tenure issues and access to land for the urban poor
were first initiated in the Second United Nations Conference on Human
Settlements during 3-14 June 1996 in Istanbul (Durand et al, 2002). Prior to this,
the focus was more on tenure regularization than on tenure security. The decade of
1990s witnessed a number of research initiatives towards issues concerning
security of tenure.
The emphasis on security of tenure increased after the Habitat II preparatory
conference on 'Access to Land and Security of Tenure as a Condition for
Sustainable Shelter and Urban Development', held in New Delhi in 1996 (UNCHS,
1996). It was this conference that laid down the founding principles for tenure
security and access to land and also emphasized upon providing security of tenure
to inhabitants of irregular settlements, slums, shack dwellers and precarious living
environments. Following this UNCHS launched Global Campaign for Secure
Tenure with an overall development objective to improve the conditions of people
living and often working in slum areas and informal settlements in major urban

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
72
centers of the world by promoting security of their residential tenure and a direct
contribution to the realization of the commitments of the Millennium Declaration,
specifically, the goal of Improving the lives of 100 million slum dwellers by the year
2020. UN-Habitat has been launching the Campaign in cities and countries all over
the world since January 2000
3.0 SECURITY OF TENURE: INTERNATIONAL EXPERIENCES
While tenure is perceived and interpreted differently in different countries, broadly
it often involves partial or full rights to land. Consequently, approaches vary
depending on the degree of access to land. A number of formal and informal tenure
structures exist which are often dependent on the legality or recognition by the
concerned administrative authority or the government.
The UN-Habitat generalizes the most common tenure systems which include
freehold, leases, provisional or conditional tenure and group tenure arrangements
(UN-Habitat, 2003). The following cases illustrate the results of various innovative
approaches adopted by different countries to provide security of tenure for the
urban poor:
3.1 Phnom Penh, Cambodia
Land Sharing was used as the upgrading and a compromise technique to resolve
land disputes between land occupants and private or public landowners or
developers, who want the land (back) for redevelopment. The results were mixed
and it met with varied degree of success (Paul, 2005).
3.2 Sao Paulo, Brazil
The 2004 Housing Rights Protector Award was awarded to the Municipality of Sao
Paulo, Brazil for its innovative Bairro Legal (Legal Neighbourhood) Programme,
an initiative providing security of tenure and improved living conditions for
hundreds of thousands of its residents. The programme assisted 45,000 families to
obtain legal title to their land, thereby safeguarding them from the threat of forced
evictions, and improved living conditions of more than 210,000 people through
infrastructure improvement (COHRE, 2004).

73
Urban India
3.3 Recife, Brazil
The Concession of the Real Right to Use (CRRU) land has stimulated the
1
regularisation of favelas on public land, or in selected private areas and was based
on the notion that public land should not, and need not, be privatised for the
recognition of housing rights to take place. Settlements granted with CRRU have
gained physical improvements from private and public investment in housing and
infrastructure, and increasingly take on the appearance of working class
neighborhoods physically integrated with the adjacent areas (World Bank, 2003).
3.4 Bangkok, Thailand
Bangkok's land rental system illustrates how poor communities legitimately
occupy land in locations which would otherwise be far too expensive for them, but
which also puts unused land to socially and economically efficient use. Different
tenure arrangements provided different levels of security and allowed more than a
million people to find access to land and housing (Mohit, 2001).
3.5 Philippines
The Community Mortgage Program (CMP), a program to facilitate access by lowincome
groups to land and credit, is the fruit of collaboration between communitybased
organizations, non-governmental organizations and the government. Social
organizations find land for sale on the private market, they develop their proposal
and gain access to credit. NGOs have significantly contributed to the evolution of
this program benefiting more than 90,000 families. The programme increased in
scale although doubts are being raised about its capacity to reach the poorest
families (Fernandez, 1997).
3.6 Namibia
The Shack Dwellers' Federation of Namibia adopted a Progressive Policy that
supports incremental development with legal land tenure. Some success in
Windhoek with policy that offers the urban poor the option to secure tenure through
sales of blocks (multiple plots) to communities that are then responsible for

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
74
upgrading the sites, including transforming communal toilets and water points to
individual household connections (Muller, 2000).
3.7 Indonesia
The national Kampung Improvement Programme (KIP) is a government led
flexible approach towards recognition of Kampungs. Lack of basic services in
2
kampungs created serious social problems and posed threat to public life. KIP was
introduced with the help of the World Bank to upgrade kampungs through the
provision of access roads, basic infrastructure and communal facilities, such as
schools and health clinics. The results of implementation of KIP generated massive
individual and collective improvements which improved public health and
particularly stimulated local economic activity (Payne 2001). KIP in Jakarta, alone,
has improved more than 500 kampungs and provided basic services to about 3.8
million people (urban.wikia.com).
3.8 Lima, Nazca and Arequipa, Peru
The government of Peru modified its longstanding policy under the Urban Poverty
Rights Project of repressing extralegal settlement on state land and private property
and improper use of agricultural land for urban development, accepting these
3
developments as inevitable. COFOPRI is the agency in charge of the design and
implementation of a massive Land Tenure Regularization Program. Land tenure
regularization of 450 human settlements, which means 368,887 plots in urban
settlements had been registered at the Urban Property Registry. Individual Land
Tenure regularization and delivery of 265,433 titles to the qualified house holders
(Yi Yang, 1999).
3.9 Voi Town, Kenya
Community Land Trusts (CLT) concept is that land tenure is not with the individual
but with the community (Jaffer, 1996). This enables protection from land grabbing
of open spaces and social facilities. A wide range of building types have evolved,
ranging from modest two-room structures built of sun dried bricks, to substantial
doublestorey houses built of concrete blocks.

75
Urban India
4.0 SECURITY OF TENURE: NATIONAL TRENDS
As per the Census of India 2001, 42.6 million population live in slums. This
constitutes 15 per cent of the total urban population of the country which is quite
alarming. In order to improve the condition of slums, the government over the years
has undertaken a number of measures, including the legitimization of irregular land
occupation and as well as the provision of basic services to the informal
settlements. The government of India laid emphasis and argued in favour of
securing tenure for the urban poor. Until 1970s, there was no particular mention and
major focus on secure tenure for the urban poor in any of the policy documents.
However, the model Slum Areas (Improvement and Clearance) Act of 1956
provided secure tenure indirectly by notifying areas as slums although tenure
regularization is not a part of the Act. This implied that slum cannot be evicted
without the approval of the competent authority. It was in the year 1972,
Environmental Improvement of Urban Slums (EIUS) Scheme was launched for
providing basic services in the notified slums under the Slum Act 1956. It was
jointly funded by the central and the state governments. Indirectly, this scheme also
provided security for slums from eviction for a period of ten years as one of the
criteria for funding was to obtain a certificate from the municipality declaring that
the slum would not be evicted for atleast ten years. During 1980s and 1990s,
security of tenure has been the subject of attention in India after a report in 1983 by
the task force recommended legal tenure for slums (GOI, 1983). This was evident
in the policies and also was reflected in the five year plans. A number of these failed
to compliment each other and were implemented in isolation. All the policies and
programmes were short termed and were not designed for a long term approach.
The National Slum Policy, 2001 can be considered as one of the most historical
steps towards the provision of tenure and provision of basic services in slums.
However the policy is still in its draft stage and has not yet come into effect. It
advocates provision of minimum basic services for all households irrespective of
land tenure or occupancy status. It also advocated the granting of tenure on all
government tenable lands, including resettlement or rehabilitated sites. Tenure
shall be granted to all residents on all the tenable land sites owned or acquired by
the government. Proper tenure rights shall be granted on resettlement or
rehabilitated sites (GOI, 2001). Further, importance is given to security of tenure

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
76
by including it as one of the objectives of the Jawaharlal Nehru Urban Renewal
Mission (JNNURM). Provision of basic services to the urban poor including
security of tenure at affordable prices, improved housing, water supply and
sanitation, and ensuring delivery of other existing universal services of the
government for education, health and social security (GOI, 2005).
5.0 SECURITY OF TENURE: NATIONAL EXPERIENCES
In India, different types of tenure systems were adopted by different state
governments depending upon the different sizes of urban centres and differences in
policies. Tenure is provided in the form of patta under the Patta Act 1984. This act
has been one of the most imperative steps towards provision of tenure to urban poor
settlements in India. Under the act, pattas were provided to the landless poor in
urban areas and leasehold rights were issued to all persons occupying up to 50 sq.m
of land for residential use.
In Madhya Pradesh, about 15,000 pattas were issued to squatters on government
land. While in Bhopal about 20,000 lease documents were granted to the poor
households (Banerjee, 1994). Around 150,000 households were given pattas (in the
form of lease-cum sale deed) in Tamil Nadu. During 1980 to 1998 about 9.5 million
households in urban Andhra Pradesh have benefited from tenure regularization
(Banerjee, 2002).
Criticisms of Patta Act 1984 - The act was criticized for not including planning and
urban development regulations which in turn failed to provide adequate services. It
was also criticized that the Act served political interests and for its failure to
integrate the urban poor with the city.
The city wise experiences in India are illustrated below:
5.1 Kolkata
4 5
In Kolkata, most of the bastis are on land under thika tenancy. The thika tenants
have limited development rights on their property. The Basti Improvement
Programme, funded by the World Bank was implemented in these localities
involving conversion of service latrines, connection of water taps, surface drainage

77
Urban India
facilities, construction and widening of roads and pathways, and provision of street
lighting and waste disposal facilities within the bastis. As a result, living conditions
were improved in bastis. Thika tenants cannot be ousted by any court order as they
are protected under the tenancy laws and the slum act. Hence they constructed
illegal buildings and leased it out to the slum dwellers. This led to the limited
success met by any improvement programme by the state. Although bastis are
improved under the programme, they still face deficiencies in basic services.
(Ramaswamy V, 2008).
5.2 Ahmedabad
Launched in the early 1990s, Ahmedabad Slum Networking project is considered
to be one of the most successful and innovative examples in provision of tenure
security and services to the poor settlements by facilitating services such water and
sanitation in an affordable and sustainable manner. It is an infrastructure and
service provision programme that improves the livelihoods of people living and
working in Ahmedabad slum area through active participation of the community
(UN-Habitat, 2006). Slum Networking project provided a ten year licence to land
for the unauthorized settlements enabling the slum dwellers to improve the local
environment (Balamir et al, 2001). By December 2005, around 28 slum
communities were successfully upgraded benefiting 4,868 households and 24,340
people under the project. Project is still under implementation in 13 slum
communities covering 3,835 households benefiting 19,175 people (UN-Habitat,
2006).
5.3 Mumbai
Slum Rehabilitation Scheme (SRS) is a revival of the Slum Redevelopment
Scheme in 1995. Under the scheme, slums occupied prior to Jan 1, 1995 were
regularized. The objective is to redevelop and also to rehabilitate the slum and its
inhabitants. Under the scheme, rehabilitation flats are built free of cost to the slum
dweller by cross-subsidization provided by free-sale flats. Irrespective of the land
tenure status, developers are allowed to construct sale flats on slum land, whether it
is government or private land, in exchange for the construction of flats for slum
dwellers. The scheme met with limited success. By March 2000, only 3,486 units

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
78
had been built for housing the slum dwellers through the SRS (Times of India,
2000). This is because, the slum dwellers preferred to lease their flats middle-class
professionals instead of staying in them. They continued staying in dilapidated and
housing degraded conditions. As per the stipulated rules, flats cannot be bought or
sold for ten years from the time the slum dweller takes ownership. These rules are
abused by the dwellers (Times of India, 2006).
5.4 Delhi
In 1960s, slum relocation was adopted in Delhi to discourage slum proliferation in
core areas. Slums were relocated to the identified peripheral areas. These sites
turned into most undesirable and hazardous as no situ upgrading was done by the
government. Later, Delhi adopted a policy of socialization of land. Informal
settlements have grown rapidly as a result of regularization and absence of action
by the authorities. More than 60 percent of the population in Delhi lives in sub
standard settlements with quasi-legal land tenure (Risbud, 2002). Delhi is mostly
dominated by court rulings. Evictions and relocation still forms a major part of the
slum policies in Delhi. Court orders favoured the land owners resulting into largescale
evictions (Balamir et al, 2001).
5.5 Hyderabad
In 1980s, landsharing was adopted in Hyderabad for those who squatted the land in
private ownership for a considerable number of years. This was successful as it
involved the sharing of land between the slum dwellers and the land lords on
conditions agreeable to both the parties. It provided to be beneficial to both the
parties. The advantages to the landlords are immediate possession of part land with
increased value, special incentives offered by the local body for agreeing to share
the land and the advantage to the slum dwellers are security of land tenure, no
further eviction threats, incentive to build permanent houses, an asset for future
generations and most importantly, improved social status (Adusumilli, 2001).
6.0 CONCLUSIONS
The national and international experiences show that different approaches adopted

79
Urban India
by different countries, regions or cities are mostly dependent on the state's policy
and a number of diverse local factors. Each of these approaches met with varied
degree of success depending on these factors. Broadly, these approaches have been
classified into the following four categories:
6.1 Tenure security against eviction by force
Approaches involving the protection against threats of eviction have most often
proved to be successful. Bairro Legal (Legal Neighbourhood) Programme in Brazil
is one of such examples where provision of security of tenure led to the improved
living conditions of thousands of residents. Ahmedabad Slum Networking Project
is one of the most successful examples of provision of tenure security along with
the basic services by engineering innovations. However approaches such as
provision of temporary tenure rights as in the case of thika tenancy in Kolkata has
met with limited success due to misuse of the rights by thika tenants.
6.2 Incremental and flexible approaches
Provision of different levels of security as in the case of Bangkok's Land Rental
System illustrates how land can be made accessible and affordable to the poor
communities which otherwise would be an impossible task. Progressive Policy of
incremental development supporting legal land tenure of Namibia has also proved
to have significantly contributed to the improved living conditions of the poor
communities. In Indonesia, Kampung Improvement Programme (KIP) adopted a
flexible approach of recognition of Kampungs, as a result it generated massive
improvements.
6.3 Collaborative and participatory approaches
Other approaches such as The Community Mortgage Program (CMP) in
Philippines, a collaborative approach between community based organization,
NGOs and government. Innovative approaches like Landsharing as in the case of
Phnom Penh, Cambodia and Hyderabad, India have met with success as it involved
resolving of land disputes, provision of security of tenure and at the same time
mutually beneficial for both the slum dwellers and the land lords. Landlords

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
80
enjoyed special incentives and increased land value for their part of the land while
the slum dwellers enjoyed the security of tenure against forced evictions.
Community Land Trusts (CLT) concept in Kenya is one of popular examples of
tenure sharing, in which the tenure is with the community and not with individual.
6.4 Regularization
Regularization of poor communities irrespective of public or private land through
The Concession of the Real Right to Use (CRRU) in Recife, Brazil has been
instrumental in the physical improvement of the poor settlements with both private
and public investments. This case demonstrates that the public land need not be
privatized for recognition of housing rights. Successful massive land tenure
regularization was taken up under the Urban Poverty Rights Project (UPRP) in
Peru. This was possible only due to the policy change. Slum Rehabilitation Scheme
(SRS) in Mumbai regularized slums and offered free-sale flats. Despite this, the
scheme met with limited success as there was a violation of stipulated rules by the
slum dwellers. Even regularization of slums in Delhi was of no great help as court
orders favoured the land owners resulting into large-scale evictions.
On one hand it is found that approaches involving provision of tenure security
against evictions by force, collaborative initiatives, community participation,
tenure sharing, flexible and incremental tenure were successful. On the other hand,
approaches involving the violation of rules, misuse of tenure rights and biased court
orders have met with limited success.

81
Urban India
Endnote:
1 A favela is another name for a shanty town.
2 Local word for slums
3 Comisión de Formalización de la Propiedad Informal,
Commission for the Regularisation of Informal Property, was
created in 1996 by the State
4 Local name for slum
5 Thika is a contract for temporary possession of land.

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
82
References:
1. Adusumilli, U. (2001), Regulatory Guidelines for Urban Upgrading:
Hyderabad Experience, International Workshop on Regulatory Guidelines for
Urban Upgrading, Bourton, Dunsmore, 17-18 May 2001, p6-7.
2. Balamir, M., Payne, G (2001), Legality and Legitimacy in Urban Tenure
Issues, Abstract of a Paper Submitted to the ESF/N-AERUS Conference,
Katholiek Universiteit Leuven, Belgium.
3. Banerjee, B (1994), Policies, Procedures and Techniques for Regularizing
Irregular Settlements in India: The Case of Delhi, Urban Research Working
Paper, No 34, Vrije University, Amsterdam.
4. Banerjee, B (2002), Security of Tenure in Indian Cities, Holding Their
Ground: Secure Land Tenure for the Urban Poor in Developing Countries,
First Publication, p47, Earthscan Publications Ltd., London.
5. COHRE (Centre On Housing Rights and Evictions) (2004), Housing Rights
Bulletin, Vol 1, No. 4, December.
6. Durand-Lasserve, A., Royston, L (2002), International Trends and
Country Contexts From Tenure Regularisation to Tenure Security, Holding
Their Ground: Secure Land Tenure for the Urban Poor in Developing
Countries, First Publication, p1-3, Earthscan Publications, London,.
7. Fernandez, F (1997), Pagtambayayong Foundation, in: Building the City with
the People, New Trends in Community Initiatives in Cooperation with Local
Governments, Habitat International Coalition, México. Case study.
8. GOI (Government of India, Ministry of Urban Employment and Poverty
Alleviation, Ministry of Urban Development) (2005), Jawaharlal Nehru
Urban Renewal Mission (JNNURM), New Delhi.
9. GOI (Government of India, Ministry of Works and Housing) (1983), Report of
the Task Force on Housing and Urban Development, New Delhi.

83
Urban India
10. GOI (Government of India, The Ministry of Urban Development and Poverty
Alleviation) (2001), Draft National Slum Policy, Government of India, New
Delhi.
11. Jaffer, M (1996), GONGO Project, Habitat International Coalition, Mexico,
Case study.
12. Mohit, R (2001), An Even Playing Field: Security of Tenure and the Urban
Poor in Bangkok, Thailand, Global Development Network's Third Annual
Conference, December 9-12, 2001, Brazil.
13. Muller, A (2000), Shack Dwellers Federation of Namibia, Namibia Housing
Action Group (NHAG), Windhoek Namibia.
14. Paul, E. R (2005), Land Sharing in Phnom Penh: an Innovative but Insufficient
Instrument of Secure Tenure for the Poor, Expert Group Meeting on Secure
Land Tenure: New Legal Frameworks and Tools, UN-ESCAP, Bangkok,
Thailand, 8-9 December 2005.
15. Payne, G (2001), The Impact of Regulation on the Livelihoods of the Poor, the
ITDG Research Project, 'Regulatory Guidelines for Urban Upgrading',
International Workshop on Regulatory Guidelines for Urban Upgrading,
Bourton, Dunsmore, 17-18 May 2001, p13.
16. Ramaswamy, V (2008), Basti Redevelopment in Kolkata, Economic &
Political Weekly, Mumbai.
17. Risbud, N (2002), Policies for Tenure Security in Delhi, Holding Their
Ground: Secure Land Tenure for the Urban Poor in Developing Countries,
Earthscan Publications Ltd., London.
18. Times of India (2006), Gross Misuse of Mumbai's Slum Rehab Scheme, 26-
10-2006.
19. Times of India (2000), Maharashtra Government Scraps Slum Scheme, 12
March 2000.

Security of Tenure of Urban Poor Settlements:
Trends and Experiences
84
20. UNCHS (United Nations Centre for Human Settlements) (Habitat) (1996),
Access to Land and Security of Tenure as a Condition for Sustainable Shelter
and Urban Development, New Delhi Declaration, Global Conference, New
Delhi, India, 17-19 January.
21. UNCHS (1999), Urban Poverty in Africa: Selected Countries' Experiences,
Africa Forum on Urban Poverty, Nairobi.
22. UN-Habitat (2006), Best Practices Database - Winners of the 2006 Dubai
International Awards for Best Practices.
23. UN-Habitat (2002), Global Campaign for Secure Tenure, A Tool for
Advocating the Provision of Adequate Shelter for the Urban Poor, Concept
Paper, 2nd Edition, United Nations Human Settlements Programme.
24. UN-Habitat (2003), Handbook on Best Practices, Security of Tenure and
Access To Land, Implementation of the Habitat Agenda United Nations
Human Settlements Programme, Nairobi.
25. World Bank (2003), World Development Report, Chapter 6.
26. Yi Yang Z (1999), COFOPRI, an Experience of Land Tenure Regularization in
Informal Settlements in Perú Regularisation Process at the Saul Cantoral
Settlement: A Case Study.
Useful Websites:
1. www.censusindia.net
2. www.urban.wikia.com/wiki/Kampung_improvement_program#Imp
lementation (retrieved on 12 March 2009).