Haryana Amends Law to Facilitate Regularisation of Unauthorized Industrial Establishments

The State of Haryana has enacted The Haryana Management of Civic Amenities and Infrastructure Deficient Areas Outside Municipal Area (Special Provisions) Amendment Act, 2025, which received the assent of the Governor of Haryana on September 11, 2025, and was subsequently published for general information in the Official Gazette on October 3, 2025, thereby coming into force. This legislative instrument, designated as Haryana Act No. 22 of 2025, serves to further amend the Haryana Management of Civic Amenities and Infrastructure Deficient Areas Outside Municipal Area (Special Provisions) Act, 2021 (referred to as the principal Act, Haryana Act 5 of 2022, in the amendment sections). The amendment introduces significant changes aimed at streamlining the process for industrial units operating in specific areas. Key provisions include the insertion of new definitions in Section 2 of the principal Act, where "entrepreneur" and "enterprise" are now defined with the same meaning as assigned to them in the Haryana Enterprises Promotion Act, 2016. Crucially, the Act introduces a new Section 6A, which establishes a mechanism for the regularisation of unauthorized industrial establishments. This new section mandates the creation of an online portal for receiving applications from entrepreneurs and enterprises seeking regularisation. Upon submission of an application through this portal, all punitive actions initiated against the applicant(s) are deemed suspended until the Government renders a final decision, with the exception of cases already forwarded to or pending before any court of law. An "unauthorized industrial establishment" is clarified to mean an industrial unit established without the requisite permission from a competent authority under applicable Acts and rules. Additionally, clause (c) of Section 13 of the principal Act has been omitted.

The legislative intent behind this amendment is to provide a structured and transparent pathway for the regularisation of industrial units that may have commenced operations without obtaining all necessary permissions, particularly in areas outside municipal limits that are identified as deficient in civic amenities and infrastructure. The earlier legal position, as governed by the principal Act, likely lacked a specific framework for addressing such unauthorized establishments, potentially leading to uncertainty and punitive measures for industrial operators. By introducing Section 6A, the amendment addresses this statutory gap, aiming to foster a more conducive environment for industrial growth and compliance. The policy rationale appears to be to integrate existing industrial setups into the formal regulatory framework, thereby potentially enhancing economic activity and ensuring better oversight. The reference to definitions from the Haryana Enterprises Promotion Act, 2016, suggests an alignment with broader state policies aimed at promoting ease of doing business and supporting industrial development. The creation of an online portal and the automatic suspension of punitive actions upon application submission serve as key enforcement mechanisms designed to encourage units to come forward for regularisation without immediate fear of reprisal, while the government retains the ultimate decision-making authority. The legislation provided: “In case of regularisation of unauthorized industrial establishment, an online portal for receiving applications from entrepreneur/enterprise shall be created and all punitive action initiated against the applicant(s) shall be deemed to have been suspended from the date of submission of the application on the portal until the Government takes a final decision, except in cases forwarded to or pending before any court of law.” This provision underscores the Act's commitment to facilitating a resolution for non-compliant units, thereby contributing to a more regulated and organized industrial landscape in Haryana.

Keywords: Haryana, industrial regularisation, unauthorized establishments, civic amenities, infrastructure deficient areas, entrepreneurs, enterprises, Haryana Enterprises Promotion Act, 2025

Geo Tags: Country: India, State: Haryana District: Not Applicable