The Municipal Corporation of Delhi (MCD) and the Delhi Development Authority (DDA) have reduced fees by up to 75% for applications under the PM UDAY Yojana, in a fresh attempt to increase participation among property owners in the capital’s 1,511 unauthorised colonies. The reduced charges will apply to applications submitted until October 31, according to a report by Jagran – New Delhi.
The scheme is intended to provide ownership rights to more than 20 lakh property owners in these colonies. However, fewer than 1% of the potential beneficiaries have so far come forward, prompting repeated changes to the process and fee structure.
Delhi mayor Pravesh Wahi said the charges included fees imposed under the Unified Building Bye-Laws, permit fees, improvement charges and labour cess. Applicants were also required to pay charges linked to debris disposal, compensatory regulatory requirements, development, information technology and administration. These costs could amount to more than Rs 1 lakh in some cases, the report said.
The MCD and DDA have jointly reduced their applicable charges by up to 75%. The MCD expects the lower fees to encourage more property owners to submit applications before the October 31 deadline.
The PM UDAY Yojana was introduced in 2019 under Delhi’s regularisation framework. The scheme is designed to regularise properties in unauthorised colonies and provide formal ownership rights to eligible property holders. According to the report, 37,000 people have benefited from the scheme so far.
The latest implementation figures cited by the report show a much smaller response after the MCD took responsibility for completing the process following rule changes by the Centre in 2026. Only seven applications were received by the MCD, of which five were rejected because of incomplete documentation. Two new beneficiaries were added under the process.
The limited response is also linked to the legal protection already available to unauthorised colonies and constructions under special legislation. Property owners who do not join the scheme may therefore see little immediate change in the status of their properties, while applicants must pay the prescribed charges and complete the documentation process.
Another difficulty arises from the ownership structure of builder-floor properties. With one property sometimes divided among four or five owners, all co-owners may need to coordinate for an application to proceed. The report noted that disagreements or a lack of coordination among multiple owners could prevent eligible properties from benefiting from the scheme.
The fee reduction is therefore the latest administrative measure aimed at removing one barrier to participation. The immediate milestone for the programme is October 31, when the reduced charges for applicants are scheduled to end.
