The maximum penalty would be levied on plots that are over 350 sq m, as these could be charged 50 to 100 times the established circle rate.
This is likely to cost each Sainik Farm and Anant Ram Dairy resident several crores. Both these south Delhi colonies will fall under either category A or B with ` 7.74 lakh per sq m and ` 2.45 lakh per sq m as circle rates.
“The ministry is considering these options. A final call, however, will be taken after getting the view of the Delhi government,” said a source.
For colonies that have come up on private land, the ministry is planning to impose development charge and penalty, rates for which are still under discussion.
While the Centre had regularised 1,939 unauthorised settlements ahead of this year’s Delhi election, it had left out the 17 affluent colonies.
The urban development ministry under the UPA moved a cabinet note in 2013 to get an in-principle approval for Sainik Farms, Mahendru Enclave and Anant Ram Dairy but it failed to materialise as the department did not specify the quantum of regularisation fee to be charged, sources said.
Several expert committees set up by the government over the last decade ruled out demolition and favoured regularisation after charging a hefty fee on the grounds that the colonies are inhabited mostly by affluent people.
The last such panel headed by former Delhi chief secretary KK Mathur recommended that pockets under these three colonies that have encroached on government land should be charged the market value of the land as regularisation fee and another 50% of this value as penalty.