The Madhya Pradesh Government is preparing to introduce a significant reform in colony development regulations that could simplify approvals and bring greater transparency to the real estate sector.
Under the proposed policy, the distinction between colony development rules in urban and rural areas may be removed, creating a more uniform regulatory framework across the state. The role of local panchayats in granting approvals is expected to be reduced, with Collectors in rural areas and SDMs in urban areas becoming the primary authorities for key colony-related decisions.
One of the most notable provisions is the introduction of a deemed approval system. If authorities fail to take a decision on an application within the prescribed timeframe, approval will automatically be considered granted after 75 days, reducing delays and bureaucratic hurdles for developers and investors.
The policy also proposes digital monitoring of colonizers, online access to project-related information for buyers, and stricter accountability measures for incomplete or delayed colony developments. To promote affordable housing, developers may be required to reserve 15% of the project area for EWS (Economically Weaker Section) and LIG (Lower Income Group) housing.
The proposed reforms aim to boost planned development, increase transparency, protect homebuyers, and accelerate housing projects across Madhya Pradesh.
Do you think automatic approvals after 75 days will speed up development, or could it create challenges in maintaining planning standards?
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