India was previously known for having one of the most complex procedures for obtaining construction permits. This was because of its high taxation rates and the lengthy procedures it contained.
Today we’re going to be talking about the latest laws regarding Construction Permits in India, and we’re going to discuss exactly which changes were made that increased India’s EodB ranking regarding construction permits.
What is a Construction Permit?
Acquiring a Land Title
Certificate of Completion
Utilities & Services
Changes & Latest Updates
What is a Construction Permit?
A construction permit, also known as a building permit, is a license that must be obtained from authorities for any new construction or addition to pre-existing structures, as well as in some cases for major facelifts.
A building permit is required for all building developmental activities such as erection, re-erection, demolition, and major building alterations. This article will explain the application process, documents, and other requirements for obtaining a building permit in India.
The following are the steps involved in acquiring a building/construction permit in India:
1. Acquiring a Land Title
The first step towards acquiring a construction permit is acquiring a ‘Clear’ Land Title. This states that the land is clear and marketable after tracing it for any kind of previous charges or claims.
It allows people to view the previous history of the land, including claims, the chain of holdings, ownership disputes, transfers, and other details.
It is often advisable for a buyer to buy the land before the start of the project, to prevent any further issues from arising.
Basic checks can be done by anyone who is interested in the property by pulling out the property’s Encumbrance Certificate.
One of the most common issues that developers face while going into construction is, having to convert a property’s purpose from agricultural to non-agricultural purpose.
Once this decision for the change of land purpose is made, it has to be approved by the local body and the State Ministry of Urban Development.
In case of any changes in the land plan, details regarding all the relevant changes that will be made will need to be notified to the Ministry as well.
After acquiring the land title and clearance, it’s important to get zoning approvals from the local authorities.
Under the provisions of the Local Body Acts, the revenue department issues the ownership certificate for the building permit.
Before granting zoning approval, the state town planning department checks with the planning board and forwards the proposals to the various other concerned authorities in the city as needed for case-specific approvals/ NOC (Non-Objection Certificate).
According to data collected by Cll on the overall approvals required in most housing projects, approvals range from approvals required for land, to approvals for putting in place basic amenities such as electricity, water, connecting roads, and so on.
This process is commonly known as ‘Clearance’ in short.
3. Building Approvals
The next step is to obtain authority approval for the sanction of building plans/building permits under the provisions of the Building Byelaws, Master Plan, and Local Body Acts. The building approval consists of the building plan and the layout approval for the building’s construction.
Before construction activities begin, it’s crucial for a builder to submit a building plan.
Building plans are graphical representations of what a building will look like after it has been constructed.
A building plan ensures that the structure complies with building regulations.
Once the building plan has been approved, the builder must begin construction work within two years with no deviations from the approved plan.
Before beginning the construction of a residential or commercial building, the builder must obtain approval of the layout plan from the appropriate authorities.
The approved layout plan is in accordance with the approved FAR (Floor Area Ratio) or FSI (Floor Space Index).
Buildings constructed on unapproved layouts will not be permitted to be occupied, and such plots will be treated as illegal, with exemplary penalties imposed in accordance with Municipal Laws.
Land that is subdivided into plots without authority’s permission is considered an illegal or unapproved layout.
Roads, drainage, and street lighting will not be extended in such areas.
Intimation of Disapproval
The Intimation of Disapproval, or IOD, essentially states the conditions that must be met during the various stages of the Under Construction Project.
These conditions are typically classified into three categories:
(i) Immediately prior to the start of construction work
(ii) During the building period
(iii) Following the completion of the construction
Commencement Certificate: In layman’s terms, a commencement certificate is permission from the local development authority to begin construction. A builder cannot lay the “Foundation Stone” or “Build Boundaries” without these two critical documents.
4. Certificate of Completion
A ‘Construction Certificate’ is mandatory for all buildings before it is made available to purchase. This certificate is usually issued after the inspection process.
Receiving a certificate assures that the construction was completed according to plan and that it is completely legal for sale.
5. Utilities and Services
Another essential step in the construction process is gaining approvals from the appropriate authorities for electricity, gas, and water for both potable and non-potable use.
For basic amenities to be sanctioned or approved, the building must comply with building laws. Approvals must be obtained from the pollution control board for the project.
Similarly, if a bore well is to be dug, the builder must obtain permission from the municipality or the appropriate authority.
The same is required for sewer or water supply approval.
Finally, an occupancy certificate from a local body/authority is required before occupying a building or part of a building for any purpose.
Before granting the Completion-cum-Occupancy Certificate, the local body forwards the proposals to the various other concerned authorities in the city as required for the issuance of case-specific approvals/ No-Objection Certificate (NOC).
7. Changes & Latest Updates
The process for gaining a construction permit and approvals used to be a tedious one in India, However, there were changes made to the budget this year that boosted India’s Business game.
There were many changes made to construction permits, building by-laws, urban planning, and other such sectors, that pushed India’s EodB ranking to new heights.
Each state has its own procedure to acquire permits. The state of Telangana has its’ very own TS bPass website that allows developers to gain all their approvals through one application.
This reduced the amount of time that was being consumed and also helped push the real estate economy.
Stay tuned for our next blog on HMDA approvals and other construction permit relevant information for Hyderabad, coming soon!
Here’s a free checklist for your reference:
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