Punjab Haryana High Court: Warns of Purchasable FAR Stay

• The Punjab and Haryana High Court is considering a stay on purchasable Floor Area Ratio (FAR) in Haryana.
• The court observed that purchasable FAR is destroying urban landscapes in cities like Gurugram and Noida.
• A bench including Chief Justice Ashwani Kumar Mishra stated that purchasable FAR undermines building codes and is "absolute corruption."
• If a stay is imposed, construction in Haryana would be limited to original building norms.

The court's strong stance suggests a potential paradigm shift in how building regulations are enforced in the state.

The Punjab and Haryana High Court has issued a stern warning, indicating its intent to halt the implementation of purchasable Floor Area Ratio (FAR) provisions for construction projects across Haryana. This judicial intervention comes amidst observations by the court that the current system is contributing to the degradation of urban environments in major cities, specifically citing Gurugram and Noida. The court's bench, comprising Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor, highlighted significant concerns regarding the long-term impact of these policies on urban planning and infrastructure. The court's strong stance suggests a potential paradigm shift in how building regulations are enforced in the state.

Purchasable FAR in Haryana allows property owners and developers to construct additional floor space beyond the standard Floor Area Ratio permitted by existing building regulations. This extra construction capacity is acquired by paying an additional fee to the state government. The court's critical stance suggests a fundamental disagreement with the premise of allowing such deviations from established building codes through monetary transactions, particularly when considering the broader public interest and urban liveability. This mechanism, often utilized in high-growth areas like Gurugram, has come under intense judicial scrutiny.

The judicial bench articulated profound reservations regarding the entire concept of purchasable FAR, characterizing it as a mechanism that fundamentally undermines the purpose of having a comprehensive building code. Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor explicitly stated that this "purchasable concept" serves to distort and destroy the integrity of the established building framework. Their critique suggests that such provisions effectively nullify the protective intent behind urban planning and construction standards.

Drawing a comparison, the court noted that Chandigarh has maintained its reputation as a highly livable city precisely because it has not adopted the purchasable FAR model. Conversely, the bench asserted that cities like Gurugram and Noida are experiencing significant urban decay directly attributable to the widespread application of purchasable FAR. The judges further criticized that policies are being enacted which permit construction activities that would otherwise be strictly prohibited under standard building bye-laws, effectively creating loopholes for developers.

In light of these serious concerns, the Punjab and Haryana High Court is actively considering imposing a stay on all purchasable FAR provisions. Should this stay be enacted, it would mandate that all future construction in Haryana adheres strictly to the original, standard building norms, without any allowances for additional floor space acquired through fees. This potential ruling would represent a significant shift in the regulatory landscape for real estate development in the state, particularly impacting projects in Gurugram and Noida that have relied on these expanded building capacities. The P&H High Court building code review could redefine urban development.

The bench did not mince words, describing the practice of exceeding original building norms through purchasable FAR as "absolute corruption." This strong condemnation underscores the court's view that the system is inherently flawed and susceptible to misuse, leading to unchecked development and strain on urban resources. The court's overarching concern extends beyond individual projects, noting that this method of urban expansion is systematically destroying cities across the region. The potential for a Punjab Haryana High Court purchasable FAR stay has immediate and profound implications for ongoing and planned projects relying on these provisions, necessitating a re-evaluation of development strategies.

Lawyers advising real estate developers and property owners in Haryana, particularly Gurugram and Noida, must closely monitor the Punjab and Haryana High Court's proceedings regarding purchasable FAR, as a potential stay could necessitate an immediate review of ongoing and planned construction projects that rely on these provisions, impacting project viability and compliance strategies.

Source: Original reporting via legal news.