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Bihar lifts land transaction restrictions in proposed satellite township areas

#Law & Policy#Land#India#Bihar
Synopsis

The Bihar government has withdrawn restrictions on the sale and transfer of land in areas earmarked for 11 proposed satellite townships across the state, reversing a moratorium imposed earlier this year as part of its township development programme. The decision allows landowners to sell land directly to the Bihar State Housing Board while retaining planning controls intended to guide future urban expansion. The move affects proposed greenfield townships planned around Patna, Gaya, Darbhanga, Muzaffarpur, Bhagalpur, Purnia, Saharsa, Munger, Sonepur, Chhapra and Sitamarhi. The relaxation is expected to facilitate land aggregation for township projects being developed under a land-pooling framework, while enabling authorities to continue preparing master plans for the identified urban growth zones.

The Bihar government has eased restrictions on land transactions in areas identified for 11 proposed satellite townships, permitting landowners to sell land to the Bihar State Housing Board while continuing efforts to develop new planned urban centres across the state. The decision was approved during a recent cabinet meeting and modifies restrictions imposed earlier this year when the township programme was announced. 
The state government had earlier approved the development of 11 greenfield satellite townships under a land-pooling model and simultaneously imposed a moratorium on the sale, transfer, development and construction of land within designated planning areas. The restrictions were intended to prevent speculative activity and unregulated construction while master plans for the proposed townships were being prepared. 
Under the revised arrangement, landowners within the notified township areas will be allowed to sell their land to the Bihar State Housing Board. The government has stated that the relaxation is intended to facilitate the acquisition and consolidation of land required for the planned urban developments while reducing procedural hurdles that had emerged following the blanket restrictions. 
The proposed satellite townships are planned around Patna, Sonepur, Gaya, Darbhanga, Saharsa, Purnia, Munger, Muzaffarpur, Bhagalpur, Chhapra and Sitamarhi. When the programme was launched, the government identified core and special planning areas across these locations and prohibited land transactions and new construction activities until the relevant master plans were notified. For several of the proposed townships, master plans are expected to be finalised by 2027. 
The township programme is being implemented through the Town Planning Scheme framework, under which landowners participate in the development process through land pooling rather than conventional acquisition. State officials have previously indicated that participating landowners would receive a share of developed land after the completion of infrastructure and planning works, with the model intended to support organised urban expansion around major cities. 
The relaxation of transaction restrictions marks the first major modification to the township policy since its approval earlier this year. While land sales to the Housing Board will now be permitted, the broader objective of creating planned satellite urban centres remains unchanged. Authorities are continuing work on master plans, infrastructure layouts and land-pooling mechanisms that will guide development across the identified growth corridors. 
The satellite township initiative forms part of Bihar's wider urban development strategy aimed at accommodating future population growth, improving infrastructure planning and creating new residential and commercial districts around key urban centres across the state.

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