Shimla, India — April 26, 2026
In a major policy shift aimed at tightening real estate regulations, the Himachal Pradesh government has decided to reintroduce the Apartment and Property Regulation Act after a gap of nearly nine years. The move comes in the wake of alleged irregularities in the Chester Hills housing project in Solan, which exposed gaps in enforcement and planning oversight.
The reinstatement of the law is expected to curb unauthorized construction activities and bring greater accountability to residential development projects across the state. Officials say the decision will also allow the government to resume collection of External Development Charges (EDC) from builders, boosting state revenue and funding critical infrastructure.
Town and Country Planning Minister Rajesh Dharmani confirmed the development, stating that stricter enforcement powers will now be granted to the Director of the Town and Country Planning (TCP) Department to take action against violations.
Focus on Infrastructure and Compliance
Under the revived framework, builders will be required to pay EDC based on per square meter rates, which will vary across municipal corporations, planned areas, and special zones. These charges are used to develop essential public infrastructure such as roads, sewer systems, water supply, and street lighting.
Authorities believe this step will ensure that residential projects contribute directly to the development of surrounding civic amenities—an area that has faced criticism in recent years.
Background: Why the Act Was Revoked
The Himachal Pradesh Apartment and Property Regulation Act was originally implemented in September 2005 to regulate apartment construction and housing projects. However, it was repealed in 2016 following the introduction of the Real Estate (Regulation and Development) Act (RERA) by the central government, to avoid overlapping legal frameworks.
With growing concerns about enforcement gaps under the current system, the state has now opted to bring back its own regulatory mechanism alongside existing laws.
Stricter Rules for Project Clearances
In a key reform measure, the government has mandated that no residential project will receive clearance certificates without basic infrastructure in place, including water supply and road connectivity.
This decision follows protests by residents and buyers in the Chester Hills project, where lack of essential facilities sparked widespread criticism.
Officials have also announced the formation of a special review committee that will inspect both ongoing and completed projects. The panel will identify deficiencies and recommend corrective actions to ensure compliance.
Mandatory Builder Registration
To further strengthen oversight, the state government has made it mandatory for all builders to register with the Town and Country Planning Department before initiating any residential project.
Authorities have clarified that any violation of approved plans or construction norms after registration will lead to strict action, including penalties and possible project suspension.
