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OO RUEHAST RUEHBI RUEHCI RUEHDBU RUEHLH RUEHPW
DE RUEHNE #5156/01 3341315
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O 301315Z NOV 07
FM AMEMBASSY NEW DELHI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 9511
INFO RUCNCLS/ALL SOUTH AND CENTRAL ASIA COLLECTIVE
RUEAIIA/CIA WASHDC
RUEKJCS/JOINT STAFF WASHDC
RHEHNSC/NSC WASHDC
RUEKJCS/SECDEF WASHDC
RUEHUNV/USMISSION UNVIE VIENNA 1333
RUCNDT/USMISSION USUN NEW YORK 5723

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