Haryana government announces new policy to convert residential plots to commercial

                The Haryana cabinet has approved a policy that allows for the conversion of residential plots into commercial ones within planned schemes, according to an official statement. This 
move is seen as an attempt to address the evolving needs and demands within the urban development landscape. The Haryana Municipal Urban Built-Plan Reform Policy, 2023 was 
given a green signal at a state cabinet meeting presided over by Chief Minister Manohar Lal Khattar.

Khattar stated that various planned schemes such as rehabilitation schemes and town planning have been implemented over the years in municipal areas to facilitate systematic 
urban development. These schemes were then handed over to their respective municipalities for management and maintenance. However, changing circumstances have led plot 
owners to convert residential plots for non-residential purposes, which were not originally permitted.

In response to this trend, there arose a need to regulate such conversions by establishing norms and procedures. 
The new policy will apply to planned schemes within core areas of municipal limits excluding those developed by several bodies including Haryana Shahri Vikas Pradhikaran HSVP, 
Housing Board Haryana, Haryana State Industrial Infrastructure Development Corporation, and areas governed by Town and Country Planning Department Haryana.

Application Process 

To apply for conversion under this policy property owners are required to pay certain fees including a scrutiny fee of Rs 10 per square metre, conversion charges as per the notification 
of the Town and Country Planning Department, development charges amounting to 5% of commercial collector rate per square metre along with a composition fee on converted area. 
All applications will be facilitated through an online portal developed by the Urban Local Bodies Department.

Benefits & Regulations 

This policy is expected not only benefit property owners but also generate revenue for government from conversion charges and development charges. It would also help regulate 
commercial activities in planned areas, leading to better urban planning and development. Municipalities will conduct surveys to identify illegal commercial conversions and map road 
rights-of-way and affected plots. They will issue notices to property owners of illegal conversions, giving them 30 days to restore the property or apply for regularisation.

Source : The Economics Times