Haryana Revises Licensing Rules for Projects to Boost Transparency

28 Jan 2025 CW Team

Haryana's Town and Country Planning Department has updated its licensing procedures for projects in an effort to better support developers and ensure the safety of home buyers.

Under the previous guidelines, the department assessed a builder's financial capacity twice—once during the issuance of the letter of intent (LoI) and again before granting the licence. These rules, which were first introduced in 2012, were amended in 2018, and further revised on January 13, superseding the earlier regulations.

Previously, builders had to undergo the same financial evaluation twice, which sometimes led to complications when the land title changed between the issuance of the LoI and the licence. This inconsistency raised concerns about credibility. Under the new rules, builders will only need to provide financial details ahead of obtaining the licence. The builder must demonstrate that their financial capacity exceeds the total cost of the project, and if applicable, the financial capacity must match the paid-up capital in the case of shareholding.

The revised process aims to expedite project timelines by reducing the time spent scrutinizing both the builder and the project. While other terms and conditions remain unchanged, the new rules also stipulate that the financial capacity of collaborators will be considered in collaborative projects. Additionally, there will be close monitoring of fund-generation strategies and the sale of project units. News source: ET Realty

Infrastructure Urban

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