Before the creation of HUDA, the Urban Estates Department (U.E.D.) which was established in the year 1962, used to look after the work relating to planned development of urban areas and it functioned under the aegis of the Town & Country Planning Department. Its functioning was regulated by the Punjab Urban Estates Development and Regulations Act, 1964 and the rules made there under and the various development activities used to be carried out by different departments of the State Government such as PWD (B & R), Public Health, Haryana State Electricity Board etc. With the passage of time, it was experienced that the involvement of several agencies in the development of Urban Estates at various places was suffering from lack of coordination, with the result that growth of most of Urban Estates slowed down and caused unnecessary dis-satisfaction to the plot-holders in particular and public in general. Besides, as the Department had to follow the financial rules and regulations of Government, the arrangement of funds and sanction of estimates used to take a long time and the development works did not keep pace with the required standards of physical achievements. It was also felt that being a Government department, it was unable to raise resources from various lending institutions although there were many financial institutions in the country to finance urban development programmes and thus, it was benefit of availing these facilities. In nut-shell, the Urban Estates Department was not effective in achieving its defined goals of planed urban development to the satisfaction of the public at large. Thus, in order to over come all these difficulties and to achieve the expeditious development of urban estates, it was felt that the Department of Urban Estates should be converted into such a body which could take up all the development activities itself and provide various facilities in the Urban Estates expeditiously and consequently the Haryana Urban Development Authority came into existence on 13-01-1977 under the Haryana Urban Development Authority Act, 1977 to take over work, responsibilities hither to being handled by individual Government departments.
The functions of Haryana Urban Development Authority are :-
- To promote and secure development of urban areas in a systematic and planned way with the power to acquire sell and dispose off property, both movable and immovable.
- Use this so acquired land for residential, industrial, recreational and commercial purpose.
- To make available developed land to Haryana Housing Board and other bodies for providing houses to economically weaker sections of the society, and
- To undertake building works.