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Gujarat proposes ban on PG facilities in new apartment projects

#Law & Policy#Residential#India#Gujarat
Synopsis

The Gujarat government has proposed amendments to its planning regulations that would prohibit paying guest (PG) facilities in newly developed apartment schemes and commercial buildings. Under the draft rules, future PG accommodations would be permitted only as standalone developments under a separate planning category. The proposed changes also introduce dedicated regulations for preschools. The state has invited public objections and suggestions before finalising the amendments, which are aimed at bringing greater clarity to urban planning norms and reducing disputes over land use and approvals.

The Gujarat government has released draft amendments to the Comprehensive General Development Control Regulations (CGDCR) proposing that paying guest (PG) facilities should no longer be allowed within newly constructed apartment schemes. If implemented, the rules would also prohibit PG accommodations in commercial buildings, bringing a major change to the way such facilities are planned and developed in the state. 
Under the proposed amendments, future PG facilities will be permitted only as standalone developments under the Dwelling-3 (DW3) category. The Urban Development and Urban Housing Department has invited public objections and suggestions on the draft regulations before they are finalised, giving stakeholders an opportunity to provide feedback. The consultation period will remain open until October 3, after which the government will review the responses before taking a final decision. 
Officials said the move is intended to remove long-standing ambiguity surrounding PG accommodations. Although Gujarat's CGDCR, introduced in 2017, governs urban development across the state, it does not specifically define PG facilities. As a result, approvals and enforcement actions have often been handled using provisions meant for hostels and boarding houses, leading to regulatory challenges and legal disputes. 
The draft amendments also propose a separate planning category for preschools. Under the proposal, preschools will be allowed on plots measuring between 200 square metres and 1,000 square metres, with buildings having a maximum height of 12 metres. They will be permitted within bungalow schemes but will not be allowed inside residential apartment complexes. 
The proposed changes come after increased scrutiny of PG accommodations in Gujarat, particularly in Ahmedabad. During the past year, civic authorities carried out enforcement drives against several PG operators over alleged violations of approval requirements and operating norms. The absence of a clear legal framework for PG developments had resulted in multiple notices and sealing actions, prompting the government to introduce dedicated regulations. 
If approved, the revised regulations are expected to provide greater clarity for developers, investors and homebuyers by clearly distinguishing residential apartment projects from standalone PG developments. The government believes the amendments will simplify the approval process and reduce future disputes related to land use and building permissions.

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