Report of the State-level
Committee to recommend a policy framework for the Chandigarh
Periphery Controlled Area and regulating constructions
therein.
1. INTRODUCTION
1.1 The Chandigarh
Periphery Controlled area was created with the twin
objectives of ensuring a planned future expansion of the New
Capital City and to prevent mushrooming of unplanned
construction around it. The Punjab New Capital (Periphery)
Control act, 1952 accordingly aimed at regulating the use of
land and preventing unauthorized and unplanned urbanization
in a 16 kilometre periphery.
1.2 Since then, planned
satellite townships of SAS Nagar (Mohali) and Panchkula have
come up in the Periphery in addition to a large cantonment.
Further in 1990, the State Government declared an area of
10,000 Acres near Dera Bassi, falling within 23 villages of
Patiala district, to be a Free Enterprise Zone (FEZ), where
the setting up of industries was to be permitted.
1.3 Notwithstanding the regulatory
framework, enforcement has been patchy. Appreciating the
emerging ground realities, the Punjab Government had in 1998
decided to permit an across-the-board regularization of all
unauthorized constructions,
which had already come up within the Periphery up to and
including 7.12.1998. Simultaneously, it was also decided to
evolve a policy framework which would permit the setting up
of institutions related to education, health etc., with low
density of built-up area, within the Periphery, apart from
permitting activities related to leisure and tourism.
2. THE COMMITTEE
2.1 Accordingly, a
Committee headed by the Chief Secretary was constituted by
the State Government in its order of September 10, 2003 to
suggest an appropriate and transparent policy framework for
the Periphery.
2.2 Taking cognizance of
this Committee, the Hon’ble Punjab and Haryana High Court in
Civil Writ Petition No. 14357 of 2002 directed:
(i)
that the Committee should
critically examine the problems and bottlenecks in the
proper development of Periphery and to suggest a policy
framework which would ensure planned development of the
area;
(ii)
that the issue of
regularization of unauthorised constructions which have
already come up in Periphery should also be examined by this
Committee;
(iii)
that on the basis of the
recommendations made by the Committee the State Government
shall take a decision whether or not to regularize such
constructions;
(iv)
that the State Government shall
also examine the reasons for the coming up of unauthorized
constructions, rationale for their regularizing and steps to
stop such construction in future including imposition of
exemplary fine and setting up of Special Courts to deal with
such illegal constructions;
(v)
to fix responsibility of the
officers/employees responsible for abetting such
constructions and setting up a Tribunal headed by a retired
Judge of the High Court to deal with the cases of illegal
constructions.
2.3 Further, in Civil Writ
Petition No. 7187 of 2003 the Hon’ble Punjab and Haryana
High Court has also sought the views of the State of Punjab
about extending the abadi deh area/lal lakir
of the villages in Periphery, and this issue was also
referred to the Committee.
3. THE DELIBERATIONS –
BROAD POLICY FRAMEWORK
3.1 The Committee held
numerous meetings and also formally obtained the comments of
relevant Departments of the Government such as Revenue,
Industries, Housing and Urban Development and Local
Government. Views of the public at large were also sought
through placement of advertisements in news papers to which
there was considerable response.
3.2 At the outset the
Committee observed that it was first necessary to take into
account the changing character of the city of Chandigarh. It
was seen in this context that the city was initially
conceived as the capital of post partition Punjab and its
planning by and large reflected the needs thereof. Over
time, however, Chandigarh is not only the administrative
capital of two State Governments and a Union Territory but
also an important commercial and institutional hub which
houses the regional offices of Companies and Institutions
catering to several States in the northern region. It has
also become an important investment destination for Indian
and multinational Companies. The changed character of the
city has put considerable pressure on housing and social
infrastructure, which was not initially catered for. There
is also increased need for connectivity and the provision of
civic amenities. A special mention needs to be made of a
large population of the city, which is unable to afford
housing on account of its very high cost and has gravitated
into the villages in the immediate vicinity of the city as
well as several unplanned and unauthorized new colonies. It
is in this backdrop that a fresh look has to be taken of the
regulatory framework that governs the areas immediately
surrounding the city of Chandigarh so that the future needs
of the city can be adequately catered for in a planned
manner.
3.3 It is also necessary
to take note of the fact that even with all difficulties
being faced, Chandigarh is still one of the more liveable
cities in the northern region. With its close proximity and
easy connectivity to the national capital, it has also
become an attractive investment destination. It would, in
the view of the Committee, not be realistic for any State
Government not to take advantage of this opportunity and
leverage its proximity to Chandigarh to its best economic
interest. Thus, industrial promotion in the vicinity of
Chandigarh has also to be envisaged and provided for.
3.4 In the light of the
issues brought out in the foregoing paragraphs, the broad
policy framework within which the Committee approached the
entire issue of controlling the periphery of Chandigarh are
enumerated below:-
a) Housing for the
increasing population of the city is perhaps the most urgent
requirement that has to be provided for. In that context, a
realistic view has to be taken of existing unauthorized
structures. Policy also needs to cater for the normal growth
of village populations as well as migration from outside
specially of persons from economically weaker sections.
b) It is necessary also
to take into account the increased attraction of the city
and its environment as in investment destination.
c) Catering for further
growth would involve heavy investment in road connectivity,
provision of civic amenities, electricity, water supply and
sewerage. Accordingly, it was considered desirable that the
overall policy framework should also generate adequate
resources for the provision of such facilities. A
multidisciplinary sub group was asked to advise on the
imposition of such charges after studying the existing
pattern in neighbouring State of Haryana.
d) The Committee noted
the wide disparity between the level of civic and urban
infrastructure in the city and its surrounding towns and
villages. Accordingly, the available resources needed to be
suitably deployed to ensure balanced growth. Such resources,
it was felt, could also be raised and credited towards a
dedicated fund which could be used for developing and
upgrading basic infrastructure in the periphery area and
specially for the settlements therein.
4.
RECOMMENDATIONS
Given the above approach and
considering the ground realities, existing status of the
Periphery, emerging problems of unregulated and unauthorised
development, need for promoting planned development and
eliminating unauthorised and illegal constructions, the
Committee, proposes to address various issues on the
following lines:-
(a) Periphery Controlled
Area Plan
In order to meet the emerging
needs of population growth, promote planned and systematic
development of the entire area and to check haphazard,
unregulated and unplanned development, the Committee
suggests the preparation of a comprehensive
Land Use Plan for the entire
Periphery Controlled Area. Such a broad land use plan could
provide for urbanisable zones, industrial parks,
institutional and residential areas where such development
could be taken up while also highlighting the trunk services
and infrastructure to support such development. It should
also highlight the sub-areas which need to be preserved and
conserved in order to effectively protect the quality of
environment and ecology in the Periphery. However, until
such a Plan becomes final in statutory terms, change of land
use may be permitted as in interim measure, by the State
Government in accordance with other specific recommendations
of this Committee. This plan needs to be put in place in the
shortest possible time frame as that would then provide the
framework for future growth based on well established
principles of town and area planning. To implement a plan of
this magnitude, it would be advisable to consider setting up
of an independent Statutory Authority with a dedicated
initial corpus and full administrative, financial and
planning autonomy.
(b) Housing Schemes in the
Periphery
With only limited planned
urban areas available in the cities of Chandigarh, SAS Nagar
and Panchkula and the growing demand for housing, it was
noted that those who could not afford shelter in these urban
areas, found place on the fringes of the city, usually in
the adjoining settlements/villages, inside or outside the
Abadi areas in an unauthorized manner. Considering the above
situation, it is proposed that suitable pockets for
Housing/Residential use in the Periphery area be earmarked
which can be developed by the Private parties or
Government/Semi-Government Agencies. While permitting such
development, it must be ensured that adequate provisions are
made for public utilities/facilities and services. Special
care must be taken to ensure that housing needs of the
economically weaker sections are catered for in adequate
measure. Detailed policy prescriptions in this respect are
at
Annexure ‘A’.
(c) Unauthorized
Constructions
The Hon’ble High Court in its orders in CWP
No. 14357 of 2002 had tasked the Committee to examine the
issue of regularization of unauthorized constructions and
also desired it to examine the need to set up a Tribunal to
deal with cases of illegal constructions, besides suggesting
imposition of exemplary fines to stop such constructions in
future. The issue relating to unauthorized constructions
were discussed in detail. In the absence of any detailed
formal survey, a broad figure of about 1500 constructions
was estimated based on the number of notices issued by
PUDA’s Regulatory Wing since 8.12.1998, the date till which
all the previous constructions had been regularized. With
a view to preventing large-scale demolitions and
consequential human problems, the Committee recommends
a strictly one time regularisation
of unauthorised constructions, adopting, however, a well
defined and selective approach restricting it only to
small/medium residential and petty commercial constructions.
The Committee recommends that
such regularization, with a cut-off date should involve the
imposition of reasonable composition fees and land-use
conversion “charges” on a pre-defined scale, which may be
pegged at a lower rates for smaller plots. Large residential
units could be considered for regularisation in accordance
with the policy proposed for farmhouses. Alternatively, such
units could be regularized on imposition of substantively
higher composition fee. No regularization would be allowed
in any case where the construction interferes with the
provision of trunk infrastructure. However, no such
regularization should be permitted in areas prohibited for
development by virtue of being covered under the Indian
Forest Act, 1927, the Forest Conservation Act, 1980 or the
Punjab Land Preservation Act, 1900 or in areas where
construction is not permitted under any other law. To avoid
any misuse of such regularisation, the committee proposes to
fix the cut off date with slight retrospective effect like 1st
November, 2005.
The Committee feels that the
problem of unauthorized constructions needs to be addressed
by constant and effective vigil, for which the field
officers like Sub Divisional Magistrates and their staff
besides PUDA officers need to be fully involved and held
accountable. Clear administrative guidelines need to be put
in place bringing out the staff who is to be responsible for
detecting illegal construction, taking legal action and
enforcing the same. Statutory powers of the Deputy
Commissioner under the Periphery Act to carry out
demolitions could also be delegated to designated officers
(e.g. SDMs). A dedicated
field enforcement machinery within PUDA or in the Department
of Town and Country Planning also needs to be created so
that the demolition orders are implemented in letter and
spirit and, more importantly, mushrooming of illegal
constructions is nipped in the bud. Suitable amendments in
the Act may also be made to vest the Deputy Commissioners
with statutory powers to issue injunctions against
unauthorized construction, in addition to the existing
powers to demolish such constructions. It is further
suggested that the Act be amended so as to provide a fine
which may extend up to Rs.50,000/- instead of Rs.5,000/-
presently and in case of continued violation, with a fine of
Rs.5,000/- per day instead of the present rate of Rs.500/-.
Regular monitoring of progress in respect of tackling
unauthorized construction cannot be overemphasised. It is
felt that at least a quarterly review needs to be undertaken
at Government level.
The Committee is of the view
that in case the proposals in the above paragraph are
operationalized, there may not be any necessity to set up
the Special Tribunal to deal with cases of unauthorized
construction. However, the credibility of a sustained
campaign in this respect would depend critically on the
fairness of the process. Towards that end, the setting up of
an Ombudsman could be thought of who would oversee the
entire process, entertain complaints from citizens and is
empowered to give directions to the concerned authorities.
The Ombudsman would have to be vested with suitable powers
but care needs, at the same time, to ensure that there is no
intervention in matter relating to the hearing of cases and
the execution of orders passed by the Competent Authority.
(d)
Institutions
Considering the fact that
Chandigarh and SAS Nagar are emerging as fast-developing
nodes, it is natural that institutions with larger land
requirements would tend to get located here. In addition,
the area is becoming ripe for establishing sports,
recreation, leisure and tourism-related activities. The
Committee feels that such institutions and activities, which
have requirement of large open/vacant land area but smaller
built-up area, can be considered for location within the
entire Periphery. Accordingly, it would be appropriate to
consider the option of locating such activities within the
Periphery, subject to detailed guidelines, land and
development norms being put in place, which are brought out
in the detailed guidelines placed at
Annexure-B.
(e) Free Enterprise Zone
(i) Free
Enterprise Zone:
The area declared as Free
Enterprise Zone (FEZ) near Dera Bassi should continue to be
used for industries, although institutions could also be
permitted in accordance with the prescribed guidelines. In
order to ensure rational development and provision of basic
infrastructure and services in the area, a broad
developmental framework needs to be prepared along with a
development plan indicating roads/trunk infrastructure,
including areas reserved for residential and institutional
needs. There shall be no conversion/betterment charge for
the new industrial units coming up in the FEZ. However,
these shall be liable to pay the External Development
Charges.
(ii) Industrial
Industrial Parks may also be
permitted as “mega projects” in areas earmarked as
industrial & residential for such uses respectively within
the Outline Master Plan area of SAS Nagar (Mohali).
The Empowered Committee on Mega Projects has
already permitted integrated mixed use Industrial Parks,
where at least 60% of the land is used for industry, free of
external development charges and change of land use charges
in the periphery. This is a major policy incentive for
making land available to industry at reasonable rates. In
the Committee’s opinion such a policy may continue in
respect of the industrial sectors in the Mohali sectoral
grid and FEZ for general industry
and for
areas planned in Mohali’s Master Plan for IT Industry. The
policy on grant of additional incentives to industry would,
however, need to be periodically reviewed with a view to the
continuation of such benefits.
(f)
Municipal Towns in
Periphery
Committee recommends that the
existing towns of Kharar, Banur, Zirakpur, Dera Bassi should
continue to provide avenues for future growth and
development by ensuring adequate supply of developed land
for residential, commercial, institutional and industrial
purposes. Master Plans of these Towns need to be prepared
under the Punjab Regional and Town Planning & Development
Act, 1995, within the overall ambit of the Controlled Area
Plan. Further expansion in the municipal limit of these
towns has also to be regulated so that it conforms to the
overall Development Plan for the Periphery Area. It is
proposed that the future expansion of municipal limits of
the existing Periphery towns should be frozen, until these
Master Plans have been finally notified. Thereafter, if need
arises, such expansion can be considered, strictly in
accordance with the approved Master Plan subject, of course,
to the payment of the conversion charges as are being
proposed in the report. New Municipal Councils or Nagar
Panchayats within the Periphery should be notified only
after the overall Development Plan has been put in place.
(g) Existing Rural
Settlements
Considering the
existing as well as future development needs of the villages
falling within the Periphery as well as with a view to cater
to their increasing population, it would be prudent to
provide a sufficiently compact and contiguous belt of land
around the village “phirni” for ensuring the organic
growth of these villages. Any area falling between the ‘lal
lakir’ and the ‘phirni’ of the village shall also
be treated as a part of the extended belt. The area should
be allowed to be used primarily for meeting individual
residential and petty commercial needs of the existing and
future population of a village. However, charges for change
of land use should be levied on prescribed rates, except in
the case of bonafide residents. No industry should be
permitted in such area. Similarly, formal colonization shall
also not be permitted in the extended ‘abadi’ area on
the pretext of this recommendation alone.
With these caveats, the Committee
proposes to
allow the village “Abadi” area extension by 60%,
subject to a minimum of 50 metres and maximum of 100 metres
in radial length from the ‘phirni’. However, where
the exiting Abadi Deh or a part thereof is an area
which forms a part of the rural/agriculture and afforestation
zone of the Outline Master Plan/Draft Comprehensive Master
Plan/Comprehensive Master Plan prepared under the Punjab
Regional and Town Planning & Development Act, 1995,
the extent of such area shall be limited to 50 metres. Permitting
construction in the notified forest areas falling in these
villages would, of course, be subject to due approval as
regards change of land use. No permission should, however,
be granted in any area which falls within the sectoral grid
of SAS Nagar (Mohali), as reflected in the Outline Master
Plan. The extent of area where such constructions are to
be permitted will be demarcated and certified for each village
falling within the Periphery by the Revenue Authorities,
subject to the final approval of PUDA. In order to promote
planned development, it is proposed that construction in
the area should be regulated by a set of simple building
norms, subject to payment of Land-Use conversion charges
and in accordance with other details as contained in Annexure-C.
However, to avoid hardship to villagers and land owners,
the area in the extended abadi
deh shall be exempted from the provisions
of the Punjab Apartment and Property Regulation Act, 1995.
(h) Farmhouses
With a view to encouraging low-density development
and to meet the basic residential demand of landowners in
the area, Farmhouses were permitted as far back as 1966.
However, they could come up only beyond the 8-kilometre
belt, in cases where land holding was more than 5 acres.
Keeping in view the high land values, it would be appropriate
that the norms for Farmhouses are liberalised, with the
area requirements brought down to 2.5 acres and construction
being permitted within the 8 kilometre belt as well. However,
the construction of Farmhouses should be regulated by guidelines
as per Annexure-B.
(i) Land-use Conversion
Charge – Periphery Development Fund
As has been earlier observed,
any optimal development of the Periphery has necessarily to
be accompanied by considerable state-led investment in urban
infrastructure. Similarly, the existing urban and rural
settlements must also become beneficiaries in any
resource-raising that might be leveraged through a system of
granting land-use change permissions. It would be neither
fair nor just to burden the State exchequer alone with the
responsibility of funding such development works, without
any concomitant additional resource mobilization. On the
other hand, ignoring this aspect at the policy formulation
stage would result in irretrievably losing the best
opportunity for providing supporting infrastructure at
optimal cost.
In view of this, the
Committee suggests that conversion of land use and
betterment charge should be imposed if need be through an
amendment of the Periphery Act. The Committee recommends
that there should be an in-built betterment charge
applicable to lands abutting the road network within the
conversion charge itself. This is fully justifiable because
of the initial investment by the Government in the form of
land acquisition and construction of National / State
highways, Sector roads and other roads. Betterment charge
could be in the form of a percentage premium over and above
the conversion charge. These “charges” should be credited to
the Government treasury and should be dedicated to the
provisions and maintenance of physical infrastructure in the
periphery. The Department of Housing and Urban Development
in consultation with the Finance Department, may work out
the administrative and legal details to manage this Fund.
However, the model adopted by the State Government for
regular release of Social Security pensions may serve as a
useful prototype to ensure that receipts on account of this
charge are released in the ordinary course of business to
the nodal agency. The Governing Body of this Fund should be
a high level body, headed preferably by the Chief Minister,
and in addition to Ministers and the Administrative
Secretaries concerned, may also have representation of the
elected representatives like MLAs, Presidents of the
Municipal Bodies and Panches/Sarpanches whose territorial
jurisdiction falls within the Periphery. While the Governing
Body would, no doubt, be in the best position to settle
competing demands for resources, it is suggested that the
first charge on this Fund should be the basic development
works in the village from which revenue receipts arise. The
imposition of a fair and optimal level of conversion charge
is crucial to the success of this policy package which must
be adequate to generate enough funds to finance creation of
new roads and other physical and social infrastructure in
the periphery area.
The multidisciplinary group
has worked out the details of External Development Charges
based on basic infrastructure requirements (Annexure D-II)
which need to be put in place to provide facilities broadly
comparable to Chandigarh. The scale of conversion charge is
similar to the one being levied by Haryana Government in the
satellite town of Panchkula. The Committee generally agrees
with the scale of these charges including the licence fee
proposed by the sub group (Annexure D-I) as it
provides a reasonable competitive edge to Mohali compared to
the charges being levied in Panchkula
(Annexure D-III). It
is also worth mentioning that while suggesting the different
charges, the differential between the permissible FARs
between Mohali and Panchkula has been duly taken care of.
These charges are proposed
for the outline Master Plan of Mohali and can be suitably
adjusted for remaining areas of the Periphery. Such charges
would, however, not be imposed when land is provided for
public utilities and other services such as Government
Schools, Dispensaries, Veterinary Centres, Post Offices,
Police Stations and the like. The aforesaid conversion
charges and other fees should be in addition to, and not in
substitution of, the External Development Charges (EDC) that
are payable within the framework of the Punjab Apartment and
Property Regulation Act, 1995.
(j)
Total Repeal of the Periphery
Act Not Recommended:
The Committee has received
suggestions from different quarters to totally repeal the
Periphery Act. In this context, attention is drawn to the
changing character of the city of Chandigarh, alluded to in
paragraph 3.2 of this report. This transition also
necessitates a fresh look at the regulatory framework
governing the Periphery. However, the Committee, even after
due deliberation, is unable to recommend the total repeal of
the Act, as it would remove all curbs on sub optimal
construction and haphazard urban development in the
Periphery.
The Committee noted that the process of drawing
up Master Plans in the State as a whole has yet to
effectively take off and towards that end, the State
Government is contemplating to amend the Town and Country
Planning Act with a view to permitting quick finalization of
such Plans. However, it will be several years before Master
Plans would be in place and till then, it is necessary to
have a legal framework effective in the Periphery of
Chandigarh, which is currently provided by this Act. It
would, therefore, be inadvisable to remove the legal
umbrella, which is available to exercise control over land
use till such time as detailed planning is put in place. The
Committee has also separately suggested the imposition of
EDC and conversion charges in reasonable measure with a view
to generating resources for providing requisite
infrastructure for urbanization which will and is inevitably
taking place. It would not be possible to levy such charges
if there is no umbrella legislation, which provides for it
and in the absence of the levy of such charges planned
growth in the Periphery area would not be possible. For all
these reasons, the Committee is of the view that it would be
inadvisable to repeal The Punjab New Capital (Periphery)
Control Act, 1952.
7. CONCLUSION:
The Committee had to
balance and optimise between divergent and often conflicting
demands and requirements. For instance, the purist view of
freezing the Periphery as agricultural was contradictory to
the very reasonable demand to allow for the expansion of the
‘abadi dehs’ or for permitting housing in a planned
manner. Similarly, although institutions and leisure
facilities have been recommended, the norms of FAR and
built-up area, have been pegged on the lower side.
Conversion charges
were also deemed necessary to raise resources for the
overall development of the Periphery, although the Committee
was acutely conscious that it may add to overall project
cost. While the Committee recommends strict compliance with
the up-to-date Outline Master Plan of SAS Nagar, it also
suggests the speedy formulation of an over-arching Periphery
Development Plan for the entire region. Nevertheless,
pending finalization of the latter, the Committee recommends
that limited change of land use may be permitted as per the
recommendations contained in this Report.
Even though existing
constructions have been proposed to be regularised on purely
humanitarian grounds, the Committee has strongly recommended
a zero tolerance enforcement and regulatory regime, in the
post-Policy phase. However, enforcement of the regulatory
regime would only be sustainable in the long run if total
Area Planning of the Periphery is taken up in right earnest
and brought to its logical conclusion at the earliest.
The prescription
proposed by the Committee is to be viewed as a comprehensive
package, which needs to be comprehensively implemented. The
Committee sincerely hopes that it would have addressed the
concerns of all the stakeholders in a judicious, balanced
and practical manner. It is now for the State Government
to consider, approve and implement both the regulatory and
development aspects of this policy in prescribed time
frames.
Chief Administrator, PUDA Secretary,
Housing & Urban Dev.
(Member
Secretary)
(Member)
Secretary,
PWD (B&R)
Principal Secretary, Industries
(Member)
(Member)
Principal Secretary, Local
Govt. Financial Commissioner, Revenue
(Member)
(Member)
Chief Secretary
(Chairman)
