Punjab Local Government Commercialization Rules 2004

Punjab Local Government Commercialization Rules 2004

GOVERNMENT OF THE PUNJABLOCAL GOVERNMENT & RURAL DEVELOPMENTDEPARTMENT

Dated, Lahore the 2^nd October, 2004

NOTIFICATION

No.SOV(LG)35-1/2003: In exercise of the powers conferred upon him under section 191(1) of the Punjab Local Government Ordinance, 2001 (XIII of 2001), the Governor of the Punjab is pleased to make the following rules:-

1. Short title, extent and commencement.-

(1) These rules may be called the Punjab Local Government (Commercialization) Rules, 2004.(2) These rules shall extend to the whole of the province of the Punjab in respect of areas of Tehsil Municipal Administration, Town Municipal Administration and City District Government, excluding the areas notified as cantonments under the Cantonment Ordinance, 2002 (CXXXVII of 2002)., areas falling in the jurisdiction of Development Authorities as defined in the Disposal of Land by Development Authorities (Regulation) Act, 1998 (XII of 1998), The Lahore Development Authority, and Housing Schemes of Housing, Urban Development and Public Health Engineering Department, Government of the Punjab.(3) These rules shall come into force at once.

2. Definitions.-

(1) In these rules, unless the subject or context otherwise requires,-(a) “approved plan” means a long-term Spatial Plan, Master Plan or Outline Development Plan or any Zoning or Land Use Plan made thereunder, for the time being in force, that inter alia provides for the development, expansion and improvement of the area and also includes restrictions, regulations and prohibitions with regard to the development of sites, erection and re-erection of buildings within the local government area, duly approved by the competent authority i.e. Tehsil Council, Town Council or Zila Council in a City District, as the case may be;(b) “building regulations” means laws, rules, regulations, byelaws policies or provisions of approved plan, for the time being in force, regulating the construction of buildings;(c) “commercialization” means change in the use of land or building, from residential to commercial, against the uses prescribed in the approved plan;(d) ‘Commercialization Committee” means a committee constituted under rule 11 in respect of Tehsil Municipal Administration, Town Municipal Administration or City District Government, as the case may be;(e) “main road” means an inter-regional road which caters for the inter-urban as well as inter-district traffic;(f) “Ordinance” means the Punjab Local Government Ordinance, 2001(XIII of 2001); and(g) “setback” means a portion of land required to be left open to sky by the owner from his own land or property along the street or road for the purpose of parking or widening of street or road where construction of every sort under or above is prohibited.(2) Words and expressions used herein but not defined in these rules shall have the same meanings as are assigned to them in the Ordinance.

  

3. Regulation of land use.-

The land uses shall be regulated in accordance with the land use plan prepared under the approved plan notified by the City District Government in case of City District and Tehsil Municipal Administration or Town Municipal Administration, as the case may be, for all the other places, after approval by the local council concerned and vetting by the Housing, Urban Development and Public Health Engineering Department, Government of the Punjab.

4. Declaration of roads and streets.-

(1) Commercialization shall not be allowed in individual cases except on the roads and streets declared for commercialization by the Commercialization Committee after inviting public objections through proper advertisement in at least two national dailies through the Director General, Public Relation, Public: Provided that in residential zone/area no window or other opening shall be allowed on the rear side of the commercial building, which may adversely affect the privacy of the residents of the area: Provided further that the height of such buildings shall be in accordance with the prevailing height of the residential buildings of the area prescribed in accordance with the building regulations;(2) Violation of sub rule (1) shall not be compoundable.(3) The selection of roads or streets as commercial and all related matters shall be decided by the Commercialization Committee after careful analysis of the following aspects:-(I) prevailing growth pattern of the area;(ii) anticipated future development potential;(iii) predominant commercial land use;(iv) traffic volume;(v) road width;(vi) aesthetic character of the area; and(vii) any other factor considered relevant by the Commercialization Committee.

5. Setback requirements for the roads selected for commercialization.-

 (1) Properties where change of land use from non-commercial to commercial is involved, the owner of the property shall provide setback from his land as provided hereinafter:-(I) a minimum setback of ten feet for the roads selected for commercialization by the Commercialization Committee irrespective of the size of the plot;(ii) above ten feet of setback, if decided specifically by the Commercialization Committee, keeping in view the traffic needs, covered area, nature and type of building, location and other related matters; and(iii) a minimum setback of 20 feet on main roads, bye-pass roads or canals: Provided that in case of high-rise buildings, the Commercialization Committee shall give due consideration to the parking requirements before prescribing the setback.(2) The owner shall submit an affidavit to the effect that the area under setback stands surrendered in favor of the Tehsil Municipal Administration, Town Municipal Administration or City District Government, as the case may be.

 

6. Established commercial areas.

(1) In case of old established commercial areas, roads or bazaars, the Commercialization Committee shall conduct survey to identify and declare the roads and streets where provision of setback is not practicable or viable. These roads, streets or bazaars shall be notified by the respective Tehsil Municipal Administration, Town Municipal Administration or City District Government, after vetting by the Housing, Urban Development and Public Health Engineering Department, Government of the Punjab and approval by the Council concerned.(2) The applicant shall pay charges equivalent to the commercial market rates as per valuation table for the setback area failing under sub rule (1).(3) The respective Tehsil Municipal Administration, Town Municipal Administration and City District Government shall maintain a separate head of account and the income thus generated shall be utilized exclusively for the development of parking sites and parking plazas in close proximity of the area mentioned in sub-rule (1).

7. Partial commercialization.-

Partial commercialization shall not be allowed; provided that where partial commercialization already exists it may be regularized, in suitable cases, by the commercialization committee subject to the following conditions:-

8. Submission of applications.-

(1) Applications for commercialization shall be submitted to the Commercialization Committee stating clearly the intended commercial use.(2) The applicant shall be required to submit the following documents.(i) a copy of national identity card;(ii) site plan showing road width and land use with the boundaries of adjoining properties;(iii) a no objection certificate from the residents to be affected by commercialization;(iv) a no objection certificates, if required, from any other government agency;(v) documents of title;(vi) application processing fee at the rate of Rs.2000/- per marla or as maybe prescribed by Government from time to time; and(vii) any other document or information required by the Commercialization Committee.

9. Commercialization charges.-

(1) Commercialization charges at threat of 20% shall be received:-(a) for the urban commercial land, on the basis of valuation tables prepared under the Stamp Act, 1899; and(b) for the areas in respect of which such valuation tales are not applicable, on the average sale price of preceding twelve months of the adjacent properties of the area: Provided that for the purpose of calculation of charges the area after under setback shall be excluded: Provided further that Government may, on the recommendation of Commercialization Committee and in the public interest, exempt from payment of commercialization charges to such conversion on land use on annual basis for projects run by charitable organizations operating on no profit and non-commercial basis and exempted from income tax by the Government of Pakistan.

(2) Payment of commercialization charges shall be made in lump sum; provided that the Commercialization Committee may, on the request of applicant, allow three equal installments of the remaining amount, covering a period of twelvemonths, in cases where at least fifty percent down payment has already been made, and in case of failure of deposit to deposit the installment within the stipulated period and even after the lapse of grace period of three months, the deposited amount shall stand forfeited in favour of the Government.(3) The building plan shall be approved by the respective Tehsil Municipal Administration or Town Municipal Administration, as the case may be, only after full payment of commercialization charges has been made.(4) A rebate at the rate of five percent of the total commercialization charges shall be given to the applicant who has paid such charges in lump sum within a period of thirty days from the receipt of demand notice.(5) The concerned Local Government shall maintain a separate head of account for the income generated from commercialization charges which shall be utilized exclusively for the widening of roads, development of sewer system and development of other infrastructure in close proximity of such commercialized land/buildings.

10. Temporary commercialization.-

(1) The Commercialization Committee may, after inviting public objections at the cost of applicant through the procedure prescribed in rule 4, allow temporary commercialization for a period not exceeding one year, at the rate of three percent of the value of urban land based on valuation table prepared under the Stamp Act, 1899, to guest houses youth hostels, gymnasiums, museums, health centers, hospitals, clinics, schools, colleges universities, clubs, bus stands, beauty clinics, restaurants, -banks and offices subject to the following conditions:-(i) structural changes in the existing buildings shall not be allowed; and(ii) provision of a no objection certificate from neighbors and prescribed parking facilities.

11. Regularization of unauthorized commercial buildings.

- 1) The Commercialization Committee may regularize the existing unauthorized commercialization if it is on the road declared for commercialization and it existed prior to 2^nd July 2001, subject to payment of commercialization charges, fees and dues, as may be leviable, at the rate of thirty percent of the value of the land based on the valuation tables prepared under the Stamp Act, 1899.(2) Such regularization shall be done subject to the following conditions:-(i) there is no encroachment on public utility sites;(ii) there is no violation of building bye-laws;(iii) a setback as required under rule 5 shall be provided or charges mentioned in rule 6 have been deposited; and(iv) an undertaking to the effect that setback shall be provided at the time fore-erection of the building has been submitted by the applicant.

12. Commercialization Committees.-

Following Commercialization Committees are hereby constituted for the purposes of these rules:-

a) For City District Government:

1) District Coordination Officer; Chairman2) EDO (Works & Services); Member3) TMO of the concerned Town; Member4) TO (P&C) of the concerned Town; Member

5) Representative of Traffic Police; Member6) Director (Commercialization) Member of the Development Authority of the City Government concerned:7) Deputy Director (PHATA) Sub Region; Member8) Representative of WASA Member (not below Grade-17); and9) District Officer (Spatial Planning Member/Secretary And Commercialization City District Government

b) For Tehsil Municipal Administration:

1) Tehsil Municipal Officer; Chairman2) Tehsil Officer (I&S); Member3) Tehsil Officer (Regulation); Member4) Representative of Traffic Police; Member5) Deputy Director (PHATA) Sub Region; Member6) Representative of WASA (where exists);and7) Tehsil Office (P&C) Member/Secretary

c) For Town Municipal Administration:

1) Town Municipal Officer; Chairman2) Town Officer (I&S); Member3) Town Officer (Regulation); Member4) Representative of Traffic Police; Member5) Deputy Director (PHATA) Sub Region; Member6) Representative of WASA (where exists); Member7) Town Officer (P&C) Member/Secretary

13. Review by Commercialization Committee.

- The Commercialization Committee may periodically review the notified roads, streets and bazaars keeping in view the changing circumstances and local conditions.

14. Action against unauthorized commercialization.

– Any commercialization on road or street made except in accordance with these rules shall be deemed to be an unauthorized commercialization and action in all such cases, including sealing of premises, shall be taken under the law for the time being in force.

15. Compliance with law:

Member/Secretary of the respective commercialization committee mentioned in Rule 12 above shall ensure that the commercialization is done strictly in accordance with prevailing law, rules, regulations, byelaws, and regulations for the time being in force. For this purpose he may develop, procedures, forms and checklists and get them approved from the commercialization committee, to ensure that the commercialization is fully compliant with the law.

16. General supervision.

- Government may issue instructions or direction generally or to a local government specifically, on matters relating to commercialization of properties. By the Order of the Governor Punjab

NAGUIB ULLAH MALIK

Secretary to Government of the Punjab Local Government and Rural Development