Haryana Introduces New Policy Allowing Conversion of Residential Plots into Commercial Use in Planned Schemes

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BI News, New Delhi: Haryana’s Chief Minister, Mr. Manohar Lal, unveiled the “Haryana Municipal Urban Built-Plan Reform Policy, 2023” today. This policy is geared towards enabling the transformation of residential plots into commercial use within planned schemes that have been established for a minimum of 50 years. It seeks to address the evolving requirements and demands of urban development.

Following a cabinet meeting in Chandigarh, the Chief Minister explained that several planned schemes, including Model Town Schemes, Rehabilitation Schemes, Town Planning Schemes, and Improvement Trust Schemes, have been executed in municipal areas to facilitate organized urban development. Subsequently, these schemes were entrusted to the respective municipalities for management and maintenance. However, changing circumstances have necessitated some plot owners to repurpose residential plots for non-residential activities, which were not initially permitted. This situation prompted the need for establishing norms and procedures to regulate such conversions.

The policy will be applicable to planned schemes within the central regions of municipal limits, excluding areas or sectors developed by Haryana Shahri Vikas Pradhikaran (HSVP), Housing Board (Haryana), Haryana State Industrial Infrastructure Development Corporation, and areas under the jurisdiction of the Town and Country Planning Department (Haryana). It will also cover plots eligible for sub-division as per other government policies and rules.

The parameters, including Floor Area Ratio (FAR), Ground Coverage, and plot height, will remain consistent with the original residential scheme. Additionally, the building line of the original scheme will be preserved.

Property owners seeking conversion will need to pay a scrutiny fee of Rs. 10 per square meter, conversion charges in line with the Town and Country Planning Department’s notification, and development charges amounting to 5% of the commercial collector rate per square meter. A composition fee of Rs. 160 per square meter on the converted area is also required.

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Penal charges will be imposed on property owners involved in unlawful or nuisance activities. No penal charges will be levied for the first six months following the policy’s notification. Subsequently, charges will be applied based on the circumstances.

The application process will be streamlined through an online portal developed by the Urban Local Bodies Department. It will entail the payment of scrutiny fees and the submission of necessary documents, as specified in the policy.

This policy is anticipated to yield benefits for both property owners and the government. Property owners will have the opportunity to convert their residential plots into commercial use, potentially increasing economic prospects. Simultaneously, the government will generate revenue from conversion charges and development fees. Furthermore, the policy will contribute to the regulation of commercial activities in planned areas, thereby fostering improved urban planning and development.