Haryana Cabinet Approves Unified Municipal Act 2025 to Streamline Urban Governance

Chandigarh, December 8 — The Haryana Cabinet, chaired by Chief Minister Nayab Singh Saini, on Monday approved the Haryana Municipalities Act, 2025, marking a major reform aimed at modernising and streamlining urban governance across the state. The new legislation will replace the existing Haryana Municipal Act, 1973, and the Haryana Municipal Corporation Act, 1994.

The unified Act seeks to bring all categories of urban local bodies—municipal corporations, municipal councils and municipal committees—under a single legal framework. Currently, 87 municipalities operate under two separate Acts, leading to administrative complexities, uneven service delivery and inconsistencies in legal interpretation. The draft of the new Act was prepared over two years through extensive consultations and incorporates key provisions from the Government of India’s Model Municipal Law.

The Haryana Municipalities Act, 2025 aims to simplify governance systems, eliminate ambiguities, modernise municipal administration and strengthen the financial autonomy of urban local bodies. Key features include empowering municipalities to fix taxes and fees within government-defined limits, introducing credit rating mechanisms to allow borrowing from capital markets and establishing an Urban Infrastructure Development Company.

The Act also introduces provisions related to urban transport planning, urban forestry and regulation of unauthorised colonies, aligning with the Haryana Development and Regulation of Urban Areas Act, 1975. Common service rules have been proposed for municipal employees to reduce disputes related to transfers and promotions arising from dual legal frameworks. Additionally, the Act provides for the appointment of Municipal Magistrates for the trial of civic offences and increases penalties for various violations.

The approval sets the stage for a modern, efficient and uniform municipal governance system across Haryana, tailored to meet current and future urbanisation needs.