Overview

There is always a huge demand for property from a builder of repute who is known for quality construction. Buyers are willing to pay a premium in return for -Peace of mind that all approvals are in place.

However, for any building to get constructed, the builder will need to have a set of approvals as well as sanctions from all the authorities concerned. Any building that comes up without these approvals will invite penalty in the form of fines and even prosecution.

Here is a detailed procedure required to get approvals and sanctions for building procedure:

A) Land Title:

First and foremost, the builder has to get clear title for the land or plot. Clear title ensures that the property is clear, marketable and it traces any charges or encumbrances created on the property and its present status. It enables a prospective buyer to know the chain of holdings, transfers over a period and check any dispute on the ownership of the property. The best possible scenario is that the builder buys the land first and then start the project. In Maharashtra, builders prefer upfront purchase of land whereas in Delhi and Karnataka Joint Development Agreement is route normally taken.

Here while deciding to buy a property a basic check can also be done by the buyer, by pulling out Encumbrance Certificate ( hyperlink) from local sub-registrar office to check ownership / lien status of land.

B) Land Clearance:

On account of urbanization agricultural land is sometimes converted into Non – Agricultural land which can further be used for constructing building for residential or commercial purpose. In such cases a developer needs to get approval from concerned authority to convert agricultural land to non-agricultural (NA) purpose.

Approval for change in land use of the plot is required from local body and the State Ministry of urban Development (UD), when the land use shown in master plan / zonal plan (where the plot is located)/ land allotment letter is to be changed (as the same is not permitted / not compatible with master plan/ zonal pan). The land use plan for land area is to be notified by the State Ministry of UD after the same is approved by local body.

C. Zonal Clearance:

After the land title & clearance, builder is required to take zoning approval from the local body / authority.

The revenue department provides the ownership certificate for building permit under the provisions of Local Body Acts.

The state town planning checks regarding city development with the planning board and forwards the proposals to the various other concerned authorities in the city as required for issue of case specific approvals/ NOC before granting zoning approval. As per data collected by CII on the overall approvals required in most of the housing projects in Delhi, Haryana, Noida / Greater Noida, Rajasthan, Punjab and Maharashtra, it has been observed that as per the following table, 51 approvals are required by housing projects that vary from approvals required for land to approvals for putting in place basic amenities like electricity, water, connecting roads, etc.

D) Building Approval:

The next step requires an approval from authority for sanction of building plans/ building permit under the provisions of Building Byelaws, Master plan and Local Body Acts. The Building approval comprises of the building plan and the layout approval for the construction of the building.

1) Building Plan:

A builder should submit building plan before starting the construction activities. Building plans are a graphical representation of what a building will look like after construction.

Building plan ensures that building complies with building laws.

Once the building plan is approved, the builder should commence construction work within two years and there should be no deviation from the sanctioned plan.

2) Layout approval:

The builder has to get approval of layout plan from concerned authorities before starting construction of residential or commercial building.

Approved Layout Plan is as per approved FAR (Floor Area Ratio) or FSI (Floor Space Index).

Constructing building on unapproved layout will not be given permission to be occupied or such layout plots will be treated as unlawful and exemplary penalties will be levied as per Municipal Laws.

Land which is sub-divided into plots without permission from authority is considered illegal or unapproved layout.

No facilities such as roads, drainage, street lighting will be extended in such areas.

3) Intimation of Disapproval

Intimation of Disapproval or IOD basically states conditions that needs to be complied with during different phases of Under Construction Project. Intimation of Disapproval in some places is also i known as Building Permit. These conditions are normally divided into 3 parts:

(i) Immediately before commencement of construction work

(ii) During the construction period

(iii) After the construction is completed

E) Completion Certificate:

After the construction is completed, Completion certificate is mandatory for building constructed before selling the building.

The completion certificate is issued after the inspection process. Issuing of Completion Certificate will ensure that the builder or owner has constructed the building as per approved plan.

F) Services & Utilities Installation:

The builder should get approval from concerned authorities for electricity, gas and water for potable and non-potable use. The building should comply with building laws for sanction or approval of basic amenities. The builder has to get NOC from pollution board on the project. Builder has to get NOC from municipality or respective authority for digging bore well. It is essential for the approval for sewer or water supply.

G) Occupancy Certificate:

Lastly, an occupancy Certificate is required from local body/ authority before occupation of a building or part of a building for any purpose. The local body forwards the proposals to the various other concerned authorities in the city as required for issue of case specific approvals/ NOC before granting Completion-cum-Occupancy Certificate.

Name : ROHIT DALMIA

Law Firm Name : ADVOCATE ROHIT DALMIA & ASSOCIATES

Country : India

City : Mumbai

State : MAHARASHTRA