New Amendments to Impact Fee Act in Gujarat: A Move Towards Public Benefit

Chief Minister Bhupendra Patel has announced significant decisions to make the Gujarat Unauthorized Development Regulation (Impact Fees) Act 2022 more people-oriented. The amendments aim to ensure broader support and maximize the benefits for more individuals.

Under the revised provisions, non-residential illegal constructions being used in rural barren land areas can now be regularized for up to a 4.5 Floor Space Index (FSI). The provisions have been extended to include unauthorized residential constructions up to 2000 square meters and non-residential constructions up to 1000 square meters that lack parking facilities. Fees will be collected to regularize these constructions.

Previously, regulations required that 50% of the missing parking facilities must be provided within the associated plot or within a 500-meter radius. The remaining 50% missing parking could be regularized by paying a fee as stipulated under the notification of the Gujarat Unauthorized Development Regulation Act 2022.

Chief Minister Patel's revisions to the impact fee structure are set to be implemented soon following proper legislative procedures. This reform is part of a series of measures aimed at making urban development more systematic and compliant while addressing the needs of the state’s growing urban populations.