In an effort to streamline processes and ensure homebuyer safety, Haryana’s Town and Country Planning Department has revised its rules for granting licenses to real estate projects, as published in The Economic Times.
Previously, the department assessed a builder’s financial capacity twice: once when issuing a Letter of Intent (LoI) and again before issuing the final license. The rules, which were first implemented in 2012 and later amended in 2018, have now been further updated, with the latest changes taking effect on January 13.
Under the revised guidelines, builders will now only need to submit their financial details once, ahead of obtaining the license. The builder must prove that its financial capacity exceeds the total cost of the project. In cases of shared ownership, the builder’s financial capacity should align with its paid-up capital.
Officials stated that the earlier dual system caused delays in project timelines, especially when the land title changed between the LoI and license issuance. The new process aims to reduce delays by streamlining the approval process.
“Our priority is to protect both homebuyers and developers. This change will expedite the review process and help meet project deadlines,” a senior official from the department said. The revised rules also mandate that the financial capacity of collaborators be considered in cases of partnerships, alongside close monitoring of fund generation and unit sales strategies.
Despite these changes, the remaining terms and conditions of the licensing process remain unchanged.