CONGRESS PUNTS UNAUTHORIZED CONSTRUCTION MESS INTO

UNCLAS SECTION 01 OF 02 NEW DELHI 005156 SIPDIS SENSITIVE SIPDIS DEPT FOR SCA/INS E.O. 12958: N/A TAGS: PGOV PREL SOCI IN SUBJECT: CONGRESS PUNTS UNAUTHORIZED CONSTRUCTION MESS INTO 2009 REF: A. NEWDELHI 1645 ¶B. 06 NEWDELHI 7827 ¶C. 06 NEWDELHI 7577 ¶D. NEW DELHI 653 ¶1. Summary: The Indian Parliament passed a law on November 27 that set a moratorium on demolition in Delhi of any unlawful construction, including unauthorized slum dwellings and commercial establishments, until at least 2009. Unauthorized construction has been a charged political issue ever since the Delhi government began demolition of these structures in ¶2006. The Delhi government quickly stopped the ham-handed demolitions once it realized the extent and depth of the public backlash. However, the political damage to Delhi's Congress government had been done. Most political pundits believe the Delhi administration's demolition actions will be a major issue in the state's legislative assembly elections in Nov. 2008. Passage of the bill effectively pushes the issue into the hands of whichever party forms the next state government in Delhi. Meanwhile, Delhi's residents continue to suffer corruption, mis-management and urban chaos. End summary. ¶2. (SBU) On November 27, the Indian Lok Sabha (Lower House of Parliament) passed the National Capital Territory of Delhi Laws, 2007, effectively protecting from demolition until December 31, 2008, all unauthorized constructions in Delhi, including slums and unsanctioned commercial developments. The legislation is an attempt by the Congress Party to undo some of the damage it suffered from a political firestorm that broke out in 2006 when the Delhi administration, under cover of an order from the Delhi High Court, began ham-handedly demolishing illegal structures in the city. Businessmen and homeowners organized angry protests, which frequently ended in physical altercations with demolition crews and police. The protesters accused the Delhi administration of being heavy-handed and arbitrary in its choice of structures to demolish. They complained that they had paid officials and the police for permission to build these structures. And, they accused officials of using the threat of demolition to extort ever more payments from the public. ¶3. (SBU) Over the decades since Independence, Delhi has seen a proliferation of unlawful commercial and residential construction, including development of wholly unauthorized ;slum colonies scattered throughout the city. This situation has arisen because: laws and regulations governing construction and zoning have been unclear and complicated; individuals and businesses have found it easier to bribe officials to look the other way rather than go through lengthy permit/license procedures; and the many-fold expansion of the Delhi economy over the past 50 years has attracted millions of workers and their families, exerting enormous pressure on the housing stock in the city. All types of organizations were involved in the drive, as even a public telephone regulatory agency and high-end retailer Nine West were complicit. Over time, the problem has come to touch a vast proportion of Delhi residents. Even those who do not reside in completely unauthorized colonies or slums have at some time or another made at least some unauthorized modification or alteration to their home or business premises. ¶4. (SBU) As the protests against the demolition drive began in 2006, it was soon clear that the Congress Party government in Delhi had misjudged the depth and extent of unauthorized construction and misread the politics of the issue. It quickly called a halt to the demolition, but the damage had been done. Not only did the Congress government's actions strengthen the opposition of traders and merchants, who tend to sympathize anyway with the Bharatiya Janata Party (BJP), but it also threatened support for the Congress among its traditional vote banks among poorer residents of Delhi, many of whom live in illegal slum colonies. The BJP came out strongly in support of the protesters, consolidating its position in the run up to elections for the Delhi state assembly due by November 2008. Most political pundits believe that the Congress Party is likely to suffer a severe backlash as the result of this controversy. The irony is that most Delhi residents agree that something needs to be done to regulate illegal construction, but they also realize NEW DELHI 00005156 002 OF 002 that bulldozers and sealings do not fix underlying official corruption and mismanagement. ¶5. (SBU) Union Urban Development Minister Jaipal Reddy conceded that the new legislation, which overturns the Delhi High Court decision, is merely a means of maintaining the status quo until more effective measures could be taken. During debate over the bill, the BJP pressed its advantage, criticizing the incumbent Congress government for failing to construct a single building for slum-dwellers to relocate to, resulting in the proliferation of unauthorized constructions. By passing the legislation, the Congress Party avoids taking any further action on this political charged issue, leaving the mess for the next state and central governments to deal with in 2009. Until a real fix is found, Delhi's 15 million residents will continue to cope with official corruption and municipal mis-management. MULFORD