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Haryana Government unveils policy for converting residential plots to commercial use

The Haryana cabinet, led by Chief Minister Manohar Lal Khattar, announced the approval of the "Haryana Municipal Urban Built-Plan Reform Policy, 2023" this week. This policy will permit the transformation of residential plots into commercial ones within planned schemes, addressing the evolving needs of urban development.
Over the years, various planned schemes, including rehabilitation and town planning, have been executed in municipal areas to facilitate systematic urban growth. These schemes were subsequently handed over to municipalities for management and maintenance. However, changing circumstances have prompted plot owners to seek conversions for non-residential purposes, which were not initially allowed. As a result, there arose a need to regulate these conversions and establish appropriate norms and procedures.
The policy's application will be limited to planned schemes within the core areas of municipal boundaries, excluding areas governed by various Haryana development authorities. It will also apply to plots allowed to be subdivided under other government policies. Crucially, parameters such as Floor Area Ratio (FAR), ground coverage, and plot height will remain consistent with the original residential scheme, ensuring the maintenance of the original building line.
Property owners seeking conversion will be required to pay a scrutiny fee of Rs 10 per square meter, conversion charges as per the Town and Country Planning Department's notification, and development charges of 5 percent of the commercial collector rate per square meter. Additionally, a composition fee of Rs 160 per square meter for the converted area will be charged. The application process will be streamlined through an online portal developed by the Urban Local Bodies Department.
The policy is expected to bring mutual benefits to property owners and the government. Property owners will gain opportunities for increased economic growth by converting their residential plots into commercial zones, while the government will generate revenue through conversion and development charges. Furthermore, this policy aims to regulate commercial activities in planned areas, fostering better urban planning and development.
Municipalities will conduct surveys to identify illegal commercial conversions and road rights-of-way, subsequently issuing notices to property owners involved in unauthorized conversions. These owners will have 30 days to either restore the property or apply for regularisation. Failure to comply may result in legal actions, including sealing or demolition. Municipalities also possess the authority to restore the building to its original status, enforce compliance with building parameters, or cancel licenses and permissions.
In another decision, the cabinet approved a comprehensive policy aimed at regularizing unauthorized constructions and granting permissions for constructing the first floor or basement or both in single-level booths, shops, and service booths allotted by municipalities or Town Improvement Trusts within municipal limits.
The government also announced substantial relief measures to support the dependents of deceased police personnel. The cabinet provided ex-post facto approval for the appointment of 50 dependents of deceased police personnel to the rank of clerk under the Haryana Civil Services (Compassionate Financial Assistance of Appointment) Rules of 2019.

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