In a major administrative overhaul aimed at improving transparency and financial discipline, the Haryana government has directed that proceeds from the sale of municipal land and revenue roads across all urban local bodies be deposited into a single centralised bank account.
Under the new system, individual municipal corporations and councils will no longer retain funds generated from land sales. Instead, all revenue will be routed to an account managed by the state’s directorate, while separate ledgers will track contributions from each city.
Move to Prevent Misuse of Funds
Officials say the policy is designed to curb potential misuse of public money at the local level and ensure that funds are utilised strategically. Once sufficient amounts accumulate, the money will be redistributed to the respective municipalities for major infrastructure and revenue-generating projects.
Planned uses include commercial complexes, multi-level parking facilities, markets, and other urban development initiatives aimed at strengthening municipal finances.
Big Impact on High-Value Cities
The reform is expected to have the most significant financial impact on major urban centres such as Gurugram, where municipal land commands premium prices. Previously, civic bodies retained proceeds from land transactions in their own accounts, giving them direct control over spending.
That practice has now been discontinued, marking a shift toward central oversight of urban land resources.
Backed by Policy Amendments
The decision follows amendments to the state’s land rate policy originally notified in November 2021. A revised clause introduced in June 2025 enabled centralised handling of income from land sales, paving the way for the current order.
Authorities have instructed officials to maintain detailed records of property transactions to ensure accountability and traceability of funds.
Revenue Roads Also Included
The order covers not only municipal land parcels but also surplus “revenue roads” — access paths originally created for agricultural use that later came under municipal control as urban development expanded.
Data indicates that several such parcels have already been sold to private developers, particularly in rapidly growing sectors. In recent years, builders have increasingly sought to regularise encroachments or purchase adjoining revenue road land within residential projects.
Income Trends and Future Outlook
Municipal records show that land sales continue to generate substantial income. In the current financial year, one major corporation has projected earnings of around Rs 5 crore from land transactions, compared with Rs 3.4 crore in the previous year. In earlier periods, sales to private developers had yielded several crores more.
Officials believe the centralised model will enable better planning of large-scale projects and ensure that land resources translate into long-term public benefits rather than fragmented local spending.
