Haryana govt introduces new policy to convert residential plots to commercial

The policy aims to help regulate commercial activities in planned areas.

October 12, 2023: The state cabinet approved Haryana government’s ‘Haryana Municipal Urban Built-Plan Reform Policy, 2023’ on October 11, 2023, at a meeting presided over by chief minister Manohar Lal Khattar. This new policy allows the use of residential plots for commercial use. Under the policy, residential plots may be converted into commercial ones within planned schemes that have been in existence for at least 50 years. The policy aims to help regulate commercial activities in planned areas. 

 

According to media sources, the policy will apply to planned schemes within core areas of municipal limits, excluding areas developed by the Haryana Shehri Vikas Pradhikaran (HSVP), Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), Housing Board and areas governed by town and country planning department. The policy will also apply to plots allowed to be subdivided under other government policies or rules. Parameters such as ground coverage, floor area ratio (FAR) and plot height will remain consistent with the original residential scheme. The building line of the original scheme will also be maintained. 

 

To apply for the conversion, the property owners will need to pay a scrutiny fee of Rs 10 per square metre, conversion charges as per the notification of the town and country planning department and development charges of 5% of commercial collector rate per square metre. They also need to pay a composition fee of Rs 160 per square metre on the converted area. The application process will be facilitated through an online portal developed by the Urban Local Bodies department. It will involve scrutiny fee and document submission as outlined in the policy.

 

Penal charges will be imposed on property owners conducting illegal activities, deemed as nuisance activities. No penal charges will be levied for the first six months from the policy’s notification date. Subsequently, charges will apply depending on the circumstances. The municipal bodies will start a survey to identify illegal commercial conversions and issue notices to property owners, giving them 30 days to restore the property or apply for regularisation. Non-compliance may lead to legal actions, including sealing or demolition. If a property is rejected or not applied for regularisation, municipalities may restore the building to its original status, enforce compliance with building parameters or cancel licences/permissions.

 

In another decision, the cabinet approved a comprehensive policy aimed at regularising unauthorised constructions and granting fresh permissions for constructing the first floor or basement or both on single-level booths, shops, and service booths allotted by municipalities or Town Improvement Trusts within municipal limits.

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