It is estimated that about 50 lakhs people of Delhi reside in UCs spread over about 175 Sq Km (approx.43, 000 acres) at present, located on private or public land. Properties in these UCs, whether in the form of plot of land or built up space, are generally held through General Power of Attorney (GPA), Will, Agreement to Sell, Payment and Possession documents.

UCs are predominantly inhabited by lower income group people, who provide their services for the growth and prosperity of the national capital. It is imperative that being a part of the capital's physical and socioeconomic system, they are provided with a clean, secure and healthy living environment. No development/ redevelopment in UCs can take place without security of ownership and rights to mortgage/ transfer properties.

The Central Government has tried to solve these problems of these UCs by issuing Guidelines and Regulations from time to time in the past. The extant Guidelines/Regulations have not shown desired results due to non-operationalization of the same by the Government of NCT of Delhi during the last 11 years.

Finally, with the approval of the Union Cabinet on 07.03.2019, Ministry of Housing and Urban Affairs (MoHUA), Government of India, constituted a Committee headed by the Lieutenant Governor of Delhi, to recommend the process for conferring/ recognizing ownership or mortgage/ transfer rights to residents of UCs in Delhi. On 07.06.2019, the Committee submitted its Report to MoHUA. On 23.10.2019, the Union Cabinet approved the proposal submitted by MoHUA for conferring/ recognizing ownership or mortgage/ transfer rights to residents of 1731 UCs in Delhi. Moreover, the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorized Colonies) Act, 2O19 has also been enacted by the Parliament to allow registration of properties and to provide huge relief to the residents of these Unauthorized Colonies (UCs) of Delhi from Registration Charges and Stamp Duty.