Haryana Amends Urban Development Act to Facilitate Independent Floor Registration

The Haryana Development and Regulation of Urban Areas (Second Amendment) Act, 2023, Haryana Act No. 29 of 2023, was published in the Haryana Government Gazette on October 9, 2023, following its assent by the Governor of Haryana on September 20, 2023. This legislative instrument, enacted by the Legislature of the State of Haryana in the Seventy-fourth Year of the Republic of India, serves to further amend the Haryana Development and Regulation of Urban Areas Act, 1975. The amendment primarily introduces significant changes concerning the registration of independent residential and commercial floors within licensed colonies. The Act came into force upon its publication in the Official Gazette.

The core of the amendment lies in the substitution of the marginal heading and sub-section (1) of section 3C of the principal Act. The previous marginal heading was replaced with "Registration of independent residential and commercial floors," clearly indicating the legislative focus. The new sub-section (1) explicitly permits the registration of independent residential and commercial floors for various property transactions, including transfer, sale, gift, exchange, or lease in perpetuity, provided these are located in a colony for which a licence has been granted under the parent Act. The legislation provided: “The registration of independent residential and commercial floors for the purpose of transfer, sale, gift, exchange or lease in perpetuity in a colony, for which a licence has been granted under this Act, shall be permitted as independent residential dwelling unit or commercial unit as the case may be: Provided that no sub-division of land under the residential dwelling unit or commercial unit shall be permitted and the registration shall be limited to only one residential dwelling unit or commercial unit on each floor.” This provision clarifies that such floors are to be treated as independent residential dwelling units or commercial units, as applicable, for registration purposes. A crucial proviso, however, stipulates that no sub-division of land beneath these units is permitted, and registration is strictly limited to one residential dwelling unit or commercial unit per floor.

The legislative intent behind this amendment is to streamline and formalize the process of property transactions involving independent floors in urban areas of Haryana. The earlier legal position likely presented ambiguities or limitations regarding the separate registration and transferability of such floors, potentially hindering real estate development and transactions. By explicitly allowing the registration of independent residential and commercial floors as distinct units, the Act addresses these statutory gaps and aims to provide greater clarity and legal certainty to property owners, buyers, and developers. This move is expected to facilitate the transfer and sale of individual floors, thereby potentially boosting the real estate market in licensed urban colonies. While enabling independent floor transactions, the amendment simultaneously introduces a safeguard against excessive fragmentation of land by prohibiting the sub-division of land under these units, ensuring that the underlying plot remains intact. This balances the need for individual property rights with broader urban planning considerations.

Keywords: Haryana, Urban Development, Independent Floors, Property Registration, Real Estate, Amendment Act, Haryana Act 29 of 2023, Land Regulation, Commercial Units, Residential Units

Geo Tags: India, Haryana District: Not Applicable