Land owners to challenge HSIIDC rules

Gurgaon Property Owners Push for Amendment to Industrial Area Rules

Property owners in Gurgaon have intensified their efforts to compel the Haryana state government to implement an amendment concerning the contentious property regulations within the city's industrial zones. The local property owners association has criticized the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), demanding the removal of a special fee imposed for the transfer of plots deemed illegal.

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Current regulations stipulate that the HSIIDC cannot levy a leasing fee on business owners possessing these plots on a freehold basis. The plot owners contend that the HSIIDC, by mandating the approval of leasing, has contravened Section 11 of the Transfer of Property Act.

The Transfer of Property Act in India dictates that once a freehold property agreement is executed, no further permission is necessary for leasing the said property. Furthermore, they assert that a freehold transaction cannot be subject to such conditions. They argue that the imposition of a lease approval requirement by the HSIIDC is a violation of established legal principles.

The HSIIDC currently charges a lease fee of approximately Rs 600 per square meter, contingent upon the plot owner obtaining official approval before submitting the application. In response to this practice, the property owners association has already initiated legal proceedings against the HSIIDC. The Punjab and Haryana High Court subsequently referred the case to the State Government for further review and consideration.

The association is scheduled to convene with the state's principal secretary in the near future to present fifteen key points previously submitted to the High Court. These points outline the association's legal arguments and proposed solutions related to the disputed property rules. The association hopes to resolve the issue in a way that respects property owners rights. They believe a solution must be found soon to mitigate the negative impacts on businesses and the development of the industrial sector in Gurgaon.