Haryana Amends Urban Development Act, Clarifies TDRs and Digitalizes Services

The Haryana Development and Regulation of Urban Areas (Amendment) Act, 2023, received the assent of the Governor of Haryana on April 10, 2023, and was subsequently published in the Official Gazette on July 26, 2023, thereby coming into force. This legislative instrument, designated as Haryana Act No. 20 of 2023, serves to further amend the Haryana Development and Regulation of Urban Areas Act, 1975, which is the principal legislation governing urban planning and development within the state. The amendment introduces significant changes aimed at modernizing administrative processes and providing greater clarity on specific development tools.

A key provision of the new Act involves the substitution of clause (n2) in section 2 of the principal Act, which redefines "Transferable Development Rights Certificate" (TDR Certificate). The legislation provided: “‘(n2) Transferable Development Rights Certificate (TDR Certificate) means the certificate of development rights given to an owner who surrenders such land to vest with the Government without claiming any compensation and such development rights may be sold or traded or auctioned by the owner;’” This revised definition explicitly outlines that a TDR Certificate is issued to a landowner who voluntarily surrenders their land to the government without seeking monetary compensation, and crucially, it affirms that these development rights can be sold, traded, or auctioned by the owner. This clarification is vital for urban planning, as Transferable Development Rights (TDRs) are a mechanism that allows landowners to transfer the development potential of their property to another location, often used to preserve heritage sites, open spaces, or to facilitate infrastructure projects without direct land acquisition costs.

Furthermore, the Amendment Act introduces substantial changes to section 8A of the principal Act, focusing on the digitalization of functions performed by the Director. Sub-section (1) of section 8A was substituted to empower the Director to perform all functions under the Act through electronic form and the internet, or to engage any person or agency to perform such functions on their behalf. A new clause (cc) was inserted into sub-section (2), specifically including the scrutiny, enquiry, processing, or correspondence related to applications for TDR Certificates, as well as their issue, holding, sale, trade, auction, and utilization, among the functions that can be carried out electronically. To support this digital transition, a new sub-section (3) was added, stipulating that if the Director engages an external person or agency for online functions, a fee may be recoverable from users at specified rates and in a prescribed manner. This fee may also be shared with the engaged person or agency and is to be maintained in an "Information Technology fund" created, managed, and operated by the Director for IT-related expenses.

The legislative intent behind these amendments is to streamline the processes related to urban development and regulation in Haryana, fostering greater transparency and efficiency. By explicitly defining TDR Certificates and their tradability, the Act aims to provide a clearer legal framework for landowners and developers utilizing this urban planning tool, potentially encouraging more organized development and land surrender for public purposes. The digitalization of the Director's functions, particularly concerning TDRs, addresses the need for modern e-governance solutions, reducing bureaucratic hurdles and expediting service delivery. This move is expected to enhance the ease of doing business for stakeholders involved in urban development projects. The provision for an IT fund ensures the sustainability and continuous improvement of the digital infrastructure required for these online services, thereby addressing any statutory gaps in funding for technological advancements in administrative processes.

Keywords: Haryana, Urban Development, TDR, Transferable Development Rights, Amendment Act, Digitalization, e-governance, Land Regulation, 2023

Geo Tags: India, Haryana
District: Not Applicable