Are you into real estate?
You must be aware of the fact that the real estate sector has been ever-growing in India playing a crucial role in helping individuals of various classes by fulfilling their needs and wants for housing.
Let me first warn you, this field will require a lot of patience. Having undertaken the construction projects like residential, commercial, or industrial projects, it has been witnessed that obtaining approval for the building projects has become lengthier.
The entire procedure looks like never-ending as there will be endless approvals required from various Government Departments of India.
Each one of us has dreamt of owning a lavish house but wait, is it really that easy to hold on to real estate property and starting the construction process? Sorry to say but you might end up waiting for months and years together just to seek the approvals required before starting with the construction process.
Let me help you prepare with the entire real estate process.
To begin with, I will be enlightening you with the “Construction Permit” which ensures that construction is meeting each of the state and local bodies’ regulations during the construction and completion phases. Various departments will be responsible for inspecting each factor of real estate and housing affairs.
Below mentioned NOC’s are required to obtain the construction permit
Airport Authority in case the construction is taking place near airport zone
- Telecom board
- Electricity Board
- Water supply & sewerage board
- State pollution control board
- Environmental clearance for projects beyond 20,000 sq. of built-up area
- Fire department, in case, the height of the building is beyond 5 floors or 15 meters
- State development authority for development beyond 5 acres of land or in authority zones and the master plan and layout sanction plan
- Mahanagar Palika for seeking final building plan approvals
Listed below are the particular departments of India involved in the real estate business
The role of the revenue department is to issue a document registered with the Property registry allowing you to lien or mortgage the property built on the details of the land given.
Department of Town Planning
The Department of town planning’s role is to issue approval for land use planning. This is essential if you wish to convert ‘agricultural land’ into ‘non-agricultural land’ for construction, development, and the use of real estate.
Department of Power
The department of power is in charge of overseeing electricity production and infrastructure development, including generation, transmission, and delivery, as well as maintenance of the projects.
Department of Water and Sanitation
The Department of Water and Sanitation will be responsible for ensuring that the water resources are protected, managed, used, developed, conserved, and controlled sustainably.
Department of Telecommunication
The Department of Telecommunications (DoT), under the Ministry of Communications & Information Technology, manages matters related to communication mediums like telegraphs, telephones, wireless, data, and telematic services.
Ministry of Environment and Forest
Considering the pollution factors, this department is responsible for providing permits for air and water control before the commencement of any real estate activity. The purpose of this ministry is to identify and evaluate the potential impacts of development and projects on the environmental system. Also, they have had set guide-lines for high rise building
Ministry of Mines
This Government department of India deals with inspection of all kinds of minerals used in the construction other than natural gas, petroleum, and atomic minerals; for mining and metals like aluminum, copper, zinc, lead, gold, nickel, etc.
Ministry of Railways
If a property is being constructed near a railway line, acquiring NOC from this respective department is a must.
Ministry of Housing
The Real Estate Regulation and Development Act, 2016 under the ministry of housing ensures the sale of plots, apartments, or buildings, sale of real estate projects. The department focuses on protecting the rights of home buyers. The Ministry of Housing is also responsible for providing approval for building materials.
How much time does it take to seek Government Approvals?
Earlier, securing construction permits required a minimum of 6-8 months from the day of acquiring the land but now, with the immense growth of the real estate sector all over the country, the wait has increased. Now, seeking Government approvals looks like an endless process as it takes a minimum of 12 to 24 months.
Challenges faced while seeking the permits
- Delay in approvals beyond the expected timelines due to lack of coordination between all the departments
- Sudden changes in planning bye-laws leads to alter the plans
- Also, if there have been amendments in the bye-laws post procuring the NOC, developers have to again make changes in the planning and re-apply for the NOC from the scratch.
How to seek faster approvals from various departments of India?
To ensure smooth flow of the process, real estate developers are seeking the introduction of single window clearance as part of the Real Estate Bill as the system is systematic and time-bound.
Today, most of the cities in the world follow a simple system for construction permits, and the guidelines are spelled out. This ensures there is no dependence on the department and the architect designing the development is solely responsible for ensuring its correctness and conformity to guidelines.
Why are the permits important?
All of the construction permits related to real estate and housing are essential due to – public safety and efficiency, revenue, and competitiveness as this helps the customers from faulty building practices, and also, a well-designed permitting and inspection system strengthens the property rights.
Visit https://www.india.gov.in/ to learn more about Real Estate and Housing
If any developer fails to procure the permit or meet the requirements, the construction will be deemed illegal and significant fines and penalties will be imposed which can further lead to demolition.