"Delhi has the most outdated development plans... That is one reason why enforcement is difficult here," Nath said.
"In Delhi, we have 1,600 unauthorised colonies; (India is) the only country in the world which has a terminology called regularised unauthorised colonies," he said.
Criticising the Delhi Master Plan, Nath said, "We have a Master Plan 2021 and it came in 2007. I have thousands of representations against it."
He was speaking at the launch of a book, 'Urbanisation in India', here.
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"Urbanisation is the great challenge facing India now," Nath said.
Development is always accompanied by urbanisation, Nath said, adding that the current share of urban populations was more than 80 per cent in developed countries.
Acknowledging the slow pace of urban infrastructure development in India, he said, "Urbanisation is the engine of growth and also poverty reduction. India is very late in urbanisation. Currently, there is an all-round urbanisation deficit.
Meanwhile, taking a dig at the CAG without naming it, he said "We are looking for houses for economically weaker sections (EWS). But given land prices, how does one build houses for the EWS?
"Some audit, as we have examples, will say why did you build for the EWS... Suddenly some body pronouncing presumptuous losses and blaming it all on policies. So how you build for EWS on government land? This is a new challenge.