Policy & Notifications-MP Real Estate

Real Estate Policy for Madhya Pradesh, 2019

Objective

The Real Estate Policy envisions bringing in path breaking initiatives for the sector with the objectives of achieving simplification and streamlining of permissions and clearances by the designated regulatory and service-provisioning departments/agencies; enhancing ease of doing business by reducing transaction time and costs; improving transparency in decision making and accountability in execution; attracting new investments and expanding employment; and contributing to growth of planned neighbourhoods and liveable cities.

Operating Period: 2019 onwards/till new policy is in place

Focus Sector: Real Estate, Digital Infrastructure for Real Estate

Incentives

  • One State One Registration – A colonizer shall be required to register only once for work within the state, with provision for renewal every five years. 
  1. Seamless integration of Registration and Mutation with the Revenue Department and Municipal Bodies for property tax collection.
  2. Nazul NOC waiver with digitized and GIS based development plans/maps.
  3. Online Composite Land Use Certificate (Form P-II) shall be provided as a composite document and no further land use certification shall be required from T&CP department.
  4. Waiving off dual ‘Shelter Tax’ collected by ULBs against the built-up area for any development within and outside the project premises and tax deposited by developer in lieu of construction of LIG/EWS housing.
  5. Affordable housing schemes by private developers shall be incentivized by reducing or waiving altogether the fee payable as development charges/permission fees/registration charges for obtaining planning and building permits.
  6. Density Bonus shall be given in the form of increased FAR in return for contribution for EWS/LIG beyond mandatory provisions.
  7. Issuance of Completion Certificate for residential or commercial schemes in a phased manner (based on stages of construction) as mentioned in Bhumi Vikas Niyam 2012.
  8. Expedited Permissions/ fast-track approval for self-declared/certified affordable housing projects within 15 days if all requisite documents fulfil the necessary requirements to build a project.
  9. Number of clearances/NOCs required to be obtained have been reduced from 27 to 5.
  10. Instant/Deemed Sanctioning of permissions for sanctioning, planning and building permission for structures up to a certain height and area shall be delegated to competent professionals as per competencies mentioned in Bhumi Vikas Niyam 2012.
  11. Consortium of Developer shall be encouraged for small real estate developers to participate collectively in large-scale affordable and other housing projects.
  12. Minimum Land Requirement in Residential Schemes of a minimum of 2 ha of land for sanctioning a housing scheme shall be reduced further.
  13. Mortgaging for Colonizer’s Registration with the Urban Local Bodies shall be rationalized to ease the pressure on the developers.
  14. Fees for Re-Registration of Colonizer in case of change of ownership during construction, the fee requirement for re-registration shall be relaxed.
  15. For Non-Resident Indians (NRIs) and People of Indian Origin (PIOs) steps shall be taken to establish robust online services and to improve ‘Ease of Doing Business’.
  16. Public private partnership with an incentive-based approach shall be adopted to facilitate economic/commercial.
  17. Green belt areas within project limits shall be considered as open spaces for providing greater flexibility to the developer and optimum utilisation of FAR.
  18. Reduction in base FAR to create a demand for higher FAR and to mobilize and harness the potential of the TDR policy.
  19. Construction of EWS shall be allowed within a certain radius of the proposed project, or an option shall be provided to the developer to deposit money in lieu of EWS houses.
  20. FAR free zones shall be created within the planning area on periphery to attract investment for commercial activities like entertainment hubs, IT parks etc.
  21. Promotion of Transfer of Development Rights (TDR) alternative channels for buying additional FAR from the market shall be explored.
  22. Digital Infrastructure for Real Estate through Sm-Re@Di (Smart MP Real Estate Digital Infrastructure) will be setup This System Would Ensure Paperless Working, Open Data Standards, Creation of A E-Property ID for Lineage Legacy Of Land, Real Time Status Monitoring, One Property One Payment, E-Project/Property Verification, Prop Tech Sandbox Etc.

View/Download Full Policy 

Real Estate Policy for Madhya Pradesh-2019 [English]

Go to MP Housing and Infrastructure Board Website

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