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Local laws Haryana Ministry of Housing and Urban Affairs Haryana Development and Regulation of Urban Area Act, 1975

Government of Haryana has issued an order regarding the required paid-up capital for housing developers

14-Jan-2025 | Order

The Haryana Government has issued an order regarding the granting of licenses to collaborators and developers of housing projects. Under the Haryana Development and Regulation of Urban Areas Act, 1975, the applicant?s ability to develop a colony must be assessed before granting a license. Currently, the financial capacity of the applicant is evaluated twice. once during the issuance of the Letter of Intent (LOI) and again before granting the license, as per office orders dated 27.03.2012 and 01.06.2018. The required paid-up capital is verified before the LOI is issued, with a condition in the LOI to enhance the capital as per the mentioned orders. This verification is then repeated before the final issuance of the license.

To streamline this process and avoid redundancy, it is now ordered that the financial capacity of the applicant will be assessed only once, prior to the grant of the license, based on the following parameters:

1. For Setting Up a Colony under Act No. 8 of 1975

The applicant?s paid-up capital, whether a collaborator or developer be equal to the sum of the scrutiny fee, conversion charges, 100% of the license fee, and Infrastructure Development Charges (IDC) for the applied area, rounded up to the nearest multiple of one crore. Additionally, accumulated reserves and surpluses, as well as any paid-up amounts of fully convertible debentures (convertible into equity shares), will be considered as part of the paid-up capital when assessing the applicant?s financial capacity in license cases.

2. For the Grant of Change of Land Use (CLU) Permissions

The paid-up capital will be examined in accordance with the guidelines set forth in office orders dated 28/08/2013 and 02/09/2013.

For further details, please refer to the attached order.

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