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Regular-article-logo Monday, 09 February 2026

Real estate reforms ready

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PIYUSH KUMAR TRIPATHI Published 28.10.11, 12:00 AM

Patna, Oct. 27: Regulation seems to be the new mantra for the state capital with the urban development department framing rules necessary for regularised development and guidelines for the present needs of the city.

Rising property prices will be curbed, rent ceiling fixed and mechanism put in place to realise property tax once the state cabinet approves the proposals.

A senior official in the urban development department said: “In the past few months, we have worked on a number of acts, rules, amendments and guidelines to update the existing policy structure. The reforms are aimed to improvise the institutional, legal and structural framework of urban local bodies and protect the rights of both citizens and commercial parties. These reforms are in various stages of drafting and proposals will be sent to the cabinet for its nod.”

Some of the rules will be presented before the cabinet next month.

The department has drafted the Bihar property tax (assessment, collection and recovery) rules, 2011, to curb soaring real estate prices. It would prescribe zonal classification of cities and classify buildings according to construction, occupation and uses — residential or commercial. The proposed rules also prescribe assessment and collection of property tax in different zones.

The urban development department would form a property tax board under the aegis of the proposed Bihar property tax board rules, 2011. The proposed board, which would be an independent authority, will ensure successful implementation of property tax rules. The department has also envisaged a provision for penalising property tax defaulters under the Bihar tax and non-tax revenue recovery regulations, 2011.

Price ceiling on rental property has also been looked into under the Bihar building rent regulation rules, 2011. The proposed rules would define the relationship between landlords and tenants, classification of tenants into commercial and residential, contract value, fixed rent structure and compulsory agreement for rental property among others.

Apart from buildings, mobile towers in the state would be regulated under the Bihar communication tower rules, 2011. According to the proposed communication tower rules, permission to install mobile towers would have to be sought from respective local bodies in addition to a mandatory structural safety certificate from engineers concerned. Fresh rates for registration charges and annual tax rates will also be fixed for installation of new towers and continuation of existing towers.

A parking policy is on the anvil that would make provisions for underground and surface parking and pay-and-park regulations among others. A proposed policy to ensure strict vigil on advertisement activities in municipal areas and regulating placement of advertisements, advertisement rates and methods of revenue collection by the municipal body among other provisions will also be in place.

Growth of slums will be regulated under the Bihar state integrated slum policy-2011 (draft) and Bihar street vendors (protection of livelihood and regulation of trade) bill, 2011, will regulate and ensure protection of livelihood of urban street vendors.

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