Haryana Policy for Conversion of Residential Plots to Commercial

The Haryana cabinet approved the Haryana Municipal Urban Built-Plan Reform Policy on Wednesday, allowing the use of residential plots for business purposes. Chief Minister Manohar Lal Khattar made this announcement during a cabinet meeting.

According to an official spokesperson, this policy permits the conversion of residential plots into commercial properties within planned schemes that have been established for at least 50 years. Over the years, various planned schemes, including model town schemes, rehabilitation schemes, town planning schemes, and improvement trust schemes, were implemented in municipal areas to facilitate systematic urban development. These schemes were later entrusted to municipal bodies for management and maintenance. However, circumstances have arisen where plot owners wish to convert residential plots for non-residential purposes, which was previously not allowed. Therefore, there is a need to regulate such conversions by establishing norms and procedures, Chief Minister Khattar explained.

The policy will be applicable to planned schemes within the 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 the town and country planning department. It will also apply to plots allowed to be subdivided under other government policies or rules.

The official spokesperson mentioned that key parameters such as floor area ratio (FAR), ground coverage, and plot height will remain in line with the original residential scheme. The building line of the original scheme will also be maintained.

To apply for the conversion, property owners will be required to pay a scrutiny fee of ₹10 per square meter, conversion charges based on the town and country planning department's notification, and development charges equal to 5% of the commercial collector rate per square meter. Additionally, a composition fee of ₹160 per square meter on the converted area is also applicable.

Penal charges will be imposed on property owners engaged in illegal or nuisance activities. No penal charges will be levied during the first six months from the policy's notification date. Subsequently, charges will be imposed based on the specific circumstances.

The application process will be streamlined through an online portal developed by the Urban Local Bodies department, which will involve scrutiny fees and document submissions, as outlined in the policy.

The spokesperson highlighted that this policy is expected to benefit both property owners and the government. Property owners will have the opportunity to convert their residential plots for commercial use, thereby increasing economic prospects. Simultaneously, the government stands to generate revenue from conversion and development charges. The policy will also contribute to the regulation of commercial activities in planned areas, ultimately enhancing urban planning and development.

Municipal bodies will initiate a survey to identify illegal commercial conversions and issue notices to property owners, allowing them 30 days to restore the property or apply for regularization. Non-compliance may lead to legal actions, including sealing or demolition. In cases of rejection or failure to apply for regularization, municipalities may restore the building to its original status, enforce compliance with building parameters, or revoke licenses and permissions, the spokesperson emphasized.