HUDA banking on pooling policy to solve land issues
Pooling policy expected to be implemented by the end of July. HT Estates examines different aspects of the proposed policy
CHANDIGARH: The Haryana Urban Development Authority (HUDA) renamed as Haryana Shehri Vikas Pradhikaran (HSVP) is struggling with its finances, but compounding its problem is lack of adequate land bank in hyper and high zones.
Most land banks it possesses are located either in medium potential or low zones. This restricts its capacity to raise funds by launching sectors or residential plot schemes.
“The authority’s capacity to increase land banks got restricted after ‘the enactment of land acquisition, rehabilitation and resettlement Act 2015, which made it difficult to acquire land. Even the rules under it are yet to be finalised,” a senior HUDA official requesting anonymity said.
FOR THE LAND OWNER
UNDER THE POLICY, DEVELOPED RESIDENTIAL PLOTS WILL BE PROVIDED IN ACCORDANCE WITH THE SALEABLE AREA ACHIEVED IN APPROVED LAYOUT PLAN OF THE TOTAL POOLED AREA
Under the proposed policy, developed residential plots will be provided in accordance with the saleable area achieved in the approved layout plan of the total pooled area in the scheme.
Developed residential plots in the ration of 60% of saleable area achieve per acre in hyper potential zone (in the earlier draft policy it was 65%), 55% in High I and High II zones; 50% in medium potential zones and 45% in Low I and Low Ii zones shall be allotted, besides a commercial (booth) site 22.6875 sq m against each one acre of land taken subject to minor adjustments, keep- ing in view the standard sizes of residential and commercial plots provided in the scheme area at the time of first flotation of the residential sector where plots shall be carved out.
In those cases, where the entitlement for residential plots works out to less than 40.50 sq m (standard size of 2-marla plot), the developed residential plot shall not be allotted and only the monetary benefit for the entitled area shall be given at first floatation rate of that sector/scheme.
Similarly, in case of land owners whose land contribution is less than 1,000 sq m (up to 999 sq m only), instead of commercial site, monetary benefit at double the nodal rate of first floatation of residential plots in the sector shall be given for the entitled area to be worked out on the basis of norm of 7.5625 sq m land for 1,000 sq m.
As per the policy, “The developed land will be allotted to the eligible landowners as per their entitlement through draw of lots from among the applications received from the landowners opting for the scheme.”
The commercial sites shall be allotted only if the same are possible to be planned in that scheme as per norms of HUDA, otherwise additional residential area equivalent to double his entitlement of developed commercial plot shall be allotted to the land owner either as a separate residential plot or by clubbing it with his residential entitlement.
Plots will be allotted on freehold basis and will be governed by the rules and regulations of HUDA. There will be no upper time limit for the beneficiary landowner under the scheme for utilization or sale of his developed sites.
However, any subsequent purchaser of land limit for construction shall also be applicable for subsequent buyers as per HUDA policy.
“The land use in respect such land shall remain ‘residential’ or ‘commercial’ as the case may be and shall not change under any circumstances. Also, fragmentation of the allotted residential/commercial plot shall be permitted under any circumstances,” reads the policy.
Unlike in the Punjab land pooling scheme wherein landowners participating in the scheme are given entitlement certificates, which are transferable; in the HUDA land pooling policy, land owners will be paid ₹50,000 per annum per acre as subsistence allowance till they are allotted developed plots.
SOLVING HUDA LAND PROBLEMS
It will free HUDA from handling the rehabilitation and resettlement policy for oustees, and the frequent court mandated enhancements.
“It is a stand- alone policy and since fair quantum of developed residential and commercial sites shall be provided to the landowners in lieu of their undeveloped land, no benefits of rehabilitation and resettlement policy of the state government or annuity shall be admissible to the landowners opting for this Land Pooling scheme,’ reads the policy.
HUDA also expects to reduce costs for projects and ultimately the plots prices after the introduction of land pooling policy.
“Land costs are a major component of the project costs. The costs of land acquisition were increasing even before the new land acquisition act was enacted. Costs also increase with court mandated enhancements from time to time, sometimes making projects unviable for the authority. All these costs ultimately add to the price on which the authority can offer plots to the public. According to estimates, with land pooling policy, the authority is expected to cut the price of plots by 30% to 40%,” said the official.
In some of the recent HUDA residential schemes, HUDA had to offer plots at prices higher than the market prices, which resulted in poor public response. In some of these schemes, even some successful allottees surrendered plots because of price issues. HUDA expects that introduction of land pooling policy would mitigate such issues.
Officials at HUDA admit that the policy would be most useful for developed areas in the hyper and high potential zones, where several land pockets are still to be acquired.
“In such places, land owners don’t have enough land themselves to meet minimum land requirements, and now, they would be able to offer land through this policy. For the authority, such pockets can be used either to offer additional plots or to construct basic amenities and structures,” added the official.
Also, residential sector could also be developed through this policy if at least 70% of landowners agree to pool their land, which is contiguous.
Plots will be allotted on freehold basis and will be governed by the rules and regulations of HUDA.