CHANDIGARH: The Chandigarh administration is set to implement significant relaxations for plots in the industrial area, including an increase in the permitted coverage area and the elimination of the mandatory central courtyard requirement. Officials indicate that this restructuring aims to respond to longstanding industry concerns and optimize land use in the city’s industrial zones.
A senior UT official mentioned the current coverage limit of 60% would be revised upwards, with the existing central courtyard provision—applicable across all industrial plots—replaced by front and rear setbacks. Consequently, the mandatory open space requirement, presently fixed at 40%, would be reduced to between 5% and 10%. “A final decision is in the pipeline and requires competent authority approval,” the official stated.
In another notable change, the administration plans to replace architectural controls with zoning parameters for plots up to two kanals. Currently, plots of this size are subject to architectural controls while larger plots are governed by zoning regulations.
These proposed amendments follow the suggestions of a high-level committee established by the UT administrator, chaired by the deputy commissioner/estate officer. The committee was tasked with identifying necessary deregulations for Chandigarh’s industrial areas, focusing on minimizing land loss within industrial plots. Officials noted that the central courtyard—originally intended to facilitate natural light, ventilation, and loading/unloading—has become impractical over time.
“With modern alternatives for light and ventilation, the courtyard’s intended purpose has evolved. Loading and unloading no longer necessitate a central open area. The expansion of the service sector in the industrial zone has rendered the courtyard an obstacle to growth,” the UT official added.
Officials stated that the Centre has been urging cities with limited land resources to enhance utilization, leading to the formation of the committee in response to these directives.
Penalties in the Millions
The coverage norms in Chandigarh’s industrial belt have long been a contentious issue, with numerous plot owners receiving hefty penalty notices from the estate office for encroachments on their courtyards. These penalties, categorized as building violations, have escalated significantly over time.
According to an industry representative, the penalty is calculated at ₹240 per sq ft per month. In a one-kanal plot, the central courtyard measures roughly 1,800 sq ft. Covering the entire courtyard could result in a penalty of nearly ₹4.3 lakh for a single month, translating to about ₹5.1 crore annually. Penalties compound if not settled, and in certain situations, the total amount surpasses the plot’s value. The initial penalty rate was ₹10 per sq ft per month, the representative noted.
In 2019, the administration allowed partial coverage of courtyards using polycarbonate sheets for storage purposes only, without additional Floor Area Ratio (FAR). The notification also required plot owners to secure a no-objection certificate from the competent authority and seek approval from the plan approval committee.
Industry representatives remarked that approximately 80% of violation notices are related to temporary courtyard coverage, which is technically allowable under the 2019 notification. With over 5,000 pending penalty notices, officials have hinted at considering a one-time amnesty scheme.
Beneficial Move for Many
Industrial Areas I and II collectively feature plots ranging from 5 marlas to 44 acres. Smaller plots—between 5 marlas and one kanal—account for 33% of Phase I and 95% of Phase II.
Currently, plots up to two kanals are subject to architectural controls with a coverage limit of 60%. In contrast, larger plots governed by zoning regulations usually have a 40% coverage cap. In 2000, the administration authorized an increase in FAR from 0.75 to 1.0, alongside a 10% coverage increase—rising from 50% to 60%—for cycle shed construction on industrial plots up to one acre.
Officials highlighted the persistent confusion regarding even temporary courtyard coverage, resulting in reluctance to issue No Objection Certificates (NOCs) or approvals. This issue has lingered unresolved for years.
