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Haryana cabinet: State govt announces new policy to convert residential plots to commercial
The “Haryana Municipal Urban Built-Plan Reform Policy, 2023” was approved at a meeting of the state cabinet, which was presided over by Chief Minister Manohar Lal Khattar
For allowing use of residential plots for business, the Haryana cabinet on Wednesday approved the Haryana Municipal Urban Built-Plan Reform Policy.
An official spokesperson said the policy will allow conversion of residential plots into commercial within planned schemes that have been in existence for at least 50 years.
Chief minister Manohar Lal Khattar said over the years, various planned schemes, including model town schemes, rehabilitation schemes, town planning schemes, and improvement trust schemes have been implemented in municipal areas to facilitate systematic urban development. These schemes were subsequently handed over to the respective municipal bodies for management and maintenance. However, circumstances have prompted plot owners to convert residential plots for non-residential purposes which was not permitted. So, there is a need to regulate such conversions by establishing norms and procedures, he said.
An official spokesperson said the policy will apply to planned schemes within core areas of municipal limits, excluding areas developed by Haryana Shehri Vikas Pradhikaran (HSVP), Housing Board, Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) and areas governed by town and country planning department. It will also apply to plots allowed to be sub-divided under other government policies or rules.
The official spokesperson said parameters such as floor area ratio (FAR), ground coverage, 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 need to pay a scrutiny fee of ₹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 ₹160 per square metre on converted area.
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 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.
The spokesperson said policy is expected to benefit both property owners and the government. Property owners will be able to convert their residential plots to commercial use for increased economic opportunities, while the government will generate revenue from the conversion charges and development charges. The policy will also help regulate commercial activities in planned areas, leading to better urban planning and development.
The spokesperson said 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 licenses/permissions, the spokesperson said.
