NEW DELHI: Real estate developers in Haryana have put forth a comprehensive set of policy recommendations to the state government, aiming for immediate regulatory, fiscal, and infrastructure reforms to revive stalled projects, reduce compliance burdens, enhance housing affordability, and accelerate urban development.
Developers are requesting an extension of relief measures under the one-time settlement scheme for outstanding license renewal fees and the ‘Samadhan Se Vikas’ policy for EDC recovery. They are also advocating for the removal of the condition that halts project approvals at a group level when EDC dues exceed ₹20 crore. The industry argues that this blanket application has stalled compliant projects, disrupted cash flows, delayed deliveries for countless homebuyers, and negatively affected government revenue recovery.
Recommendations from the industry emphasize that restrictions should be imposed on a project-wise basis, allowing approvals, license renewals, and completion certificates for compliant developments. Developers also seek relaxed license renewal norms for stalled projects being revived by new BIP holders, suggesting that overdue payments from defaulting promoters be deferred until occupation certificates are issued to facilitate project completion and safeguard buyers’ interests.
In terms of TDR policy, developers are advocating for a review of current depreciation rates, arguing that they discourage farmers from surrendering land for roads. They propose linking TDR valuation to the current circle rates without area erosion and allowing staggered payment of TDR-related fees in alignment with general license fee timelines to alleviate cash flow pressures.
Housing affordability remains a key issue, with calls for a 25% increase in notified selling prices under the Affordable Housing Policy in Gurugram and Faridabad due to significant rises in land and construction costs over the past five years. Parveen Jain, president of Naredco National, remarked, “Policy levers can help. For example, density norms allow for higher density in affordable housing; if the government increases permissible density, developers can create smaller homes within the same land parcel to improve affordability. We are discussing this with the government.”
The industry has requested that the affordable housing policy in these districts be transformed into a continuous framework to ensure predictable supply and long-term engagement. Developers also propose that group housing projects be allowed the option to pay a fee instead of surrendering EWS land, similar to provisions under the New Integrated Licensing Policy, to create a centralized fund for government-led affordable housing initiatives.
On fiscal matters, developers seek a complete waiver of interest on EDC, IDC, and related charges in master plan areas lacking government-created infrastructure, arguing that interest is compensatory and unjustified without public expenditure. They also want refunds or adjustments for interest collected in such cases along with a policy linking interest charges strictly to actual infrastructure development.
Regarding environmental clearances, developers urge the state to align licensing conditions with MoEF&CC guidelines by granting clearances based on land ownership rather than requiring final licenses and layouts, particularly for large phased projects. They also seek relaxations to continue concrete pours during construction bans under GRAP or CAQM to mitigate structural and financial risks.
Significant regulatory reforms are also being sought from the Haryana Real Estate Regulatory Authority (H-RERA). Developers have pointed out that the dual levy of registration and processing fees is atypical compared to other states. They request a capped fee structure and rationalized FAR-based calculations to avoid double recovery. Additional requests include automatic recognition of force majeure periods like pollution bans, removal of the need for additional bank guarantees for withdrawal from RERA escrow accounts post-occupancy certificate, eliminating two-thirds consent for additional licenses in integrated projects, amending AFS provisions, and formally recognizing occupancy certificates as equivalent to completion certificates to streamline processes and ensure timely project closures.
