30 Approvals Required for Construction in Real Estate

In a real estate project, there are more than 30 approvals required for construction. The process of getting these approvals from various government departments can be intimidating. We studied approval processes of various states and came up with this generic list of approvals required for construction of a real estate project.

The list is divided into 3 parts based on project stages. The first stage is feasibility stage – when the developer procures the Change in Land Use (CLU) Approval and ensures clear title of land while none of the drawings and plans are prepared in this stage. The second stage is the sanction stage – when consultants are hired to prepare various plans and assist in the approval process. Once all approvals & NOCs are obtained and the developer complies with all regulations, he is issued Commencement Certificate to start the construction. The third and final stage is post-completion stage which is when the buildings are completed and Completion Certificate and Occupancy Certificate are obtained so that the developer can offer possession to the customers.

Whether you are a home buyer, a real estate investor, developer or a banker, we are sure that you will find this list useful.

approvals-required-for-construction-in-real-estate

List of Approvals Required for Construction

S. No.ApprovalConcerned AgencyRemarks
Feasibility Stage
1Ownership Certificate/ ExtractRevenue DepartmentRequired by Development Authority/ Town & Country Planning Department/ Municipal Corporation for other approvals
2Non-Encumbrance CertificateRevenue DepartmentRequired by Development Authority/ Town & Country Planning Department/ Municipal Corporation for other approvals
3Change in Land Use (CLU) Approval/ Non-Agriculture (NA) PermissionDevelopment Authority/ Revenue Department/ Municipal CorporationAfter approval from local body, to be notified by State Ministry of Urban Development
4Airport Clearance
(if applicable)
Airport Authority of IndiaHeight clearance if the project lies within 20 kms radius of Air Strips, Funnel.
5CRZ (Coastal Regulatory Zone) ClearanceCoastal Zone Management AuthorityIf project lies within 500m of coastline.
Sanction Stage 
6Layout & Building Plan ApprovalDevelopment Authority/ Municipal CorporationIncluding Structural Plan for  buildings & other structures
7Development/ Construction LicenseDevelopment Authority/ Town & Country Planning DepartmentSite Inspection by the authority is required.
8Demarcation/ Zoning Plan ApprovalTown & Country Planning DepartmentRequired in some states separately, in addition to layout plan.
9Environment ClearanceMinistry of Environment & Forests/ State Environment Impact Assessment Authority/ State Pollution Control BoardRequired by projects exceeding land area of 125 acres or built-up area of 20,000 sqmtr.
10NOC for Tree CuttingMunicipal Corporation / Forest DepartmentProposal of tree felling and replantation to be submitted.
11NOC for Drainage & SewerageMunicipal CorporationRequired before start of construction.
12Electrical Scheme ApprovalDevelopment Authority/ Municipal Corporation/ Electricity Distribution CompanyElectrical Layout and Plan to be submitted.
13NOC for Traffic & CoordinationMunicipal Corporation/ Traffic Police DepartmentWhen the proposal involves disruption of general traffic movement/ circulation pattern temporarily or permanently during and after construction of the project.
14Fire Fighting Scheme ApprovalFire DepartmentApplicable for buildings above minimum height, as specified by Municipal Corporation of the city
15Ancient Monument Approval (if applicable)Archaelogical Survey of IndiaWhen project or part of it is within 300 m radius from the declared boundary of any monument protected under Ancient Monument Act
16Consent to Establish & Operate (DG Sets & STP)Pollution Control BoardRequired for DG sets installation, Sewage Treatment Plant (STP) etc.
17Borewell Registration CertificateCentral Ground Water AuthorityRequired to extract ground water through any energized means as per Envrionment Protection Act.
18Excavation/ Mining ApprovalDevelopment Authority/ Municipal CorporationAll drawing plans approved by development authority/ municipal corporation are to be submitted.
19Internal Infrastructure Layout & Common Facilities ApprovalMunicipal Corporation/ Utility ProviderLayout drawings & plans for water, electricity, sewerage etc. to be submitted for approval.
20Road Access Plan ApprovalNHAI/ PWD/ State Road Development AgencyRequired as per PWD Act to gain seamless access to the project site from the adjoining road.
21Lift Escalator Installation ApprovalPWD/ CPWDAMC copy and test report to be submitted.
22Sanction of Electrical Load and Approval for installation of Substation, Transformer & DG SetsElectricity Distribution CompanyElectrical drawings & plans and test reports of various equipment to be submitted along with application.
23Registration of Principal EmployerLabour DepartmentRequired in many states under Contract Labour Act
24Registration with Building Construction Workers Welfare BoardDistrict Labour OfficerRequired in many states under Contract Labour Act
25Site Office ApprovalDevelopment Authority/ Town & Country Planning DepartmentAffidavit required stating that site office will be dismantled after completion of project.
26Hoarding ApprovalNHAI/ PWD/ Land Owning AgencyApproval required to put up any hoardings about project.
27Intimation of Disapproval (IoD)/ Commencement CertificateDevelopment Authority/ Municipal CorporationOnce developer submits complete application alongwith all plans, NOCs and other approvals, authority may either issue IoD (in case of disapproval) or otherwise handsover Commencement Certificate to start construction.
After Completion
28Completion Certificate (CC)Development Authority/ Municipal CorporationAuthority issues CC upon completion of buildings as per sanctioned plans. Along with CC, a provisional occupancy certificate is also issued by authority.
29Permanent Power ConnectionElectricity Distribution CompanyAll service connections should be applied on basis of completion certificate and provisional occupancy certificate.
30Permanent Water ConnectionMunicipal Corporation/ State Water Board
31Permanent Sewerage ConnectionMunicipal Corporation/ State Water Board
32Registration of Residents’ Welfare Association (RWA)Revenue DepartmentAssociation to be registered before occupancy certificate is given.
33Occupancy Certificate (OC)Development Authority/ Municipal CorporationOccupancy Certificate is the final certificate to be received for a project. It implies that the property is now fit for occupation.

The above list is an indicative list of approvals required for construction. Some states may have additional requirements to be satisfied.

If you are a home buyer or a real estate investor, we understand that asking the developer about so many approvals may not be practical. So, you should only ask him about 4 major approvals:

  • Ownership Certificate / Extract – This will ensure that the land is owned by the developer. You can also check land records online.
  • Change in Land Use (CLU) Approval – CLU approval is required to convert agricultural land to residential, commercial or industrial.
  • Layout & Building Plan Approval – The complete layout and building plan has to be approved by the development authority or the municipal corporation of the city before construction can commence.
  • Commencement Certificate – This will ensure that the builder has received all other approvals & NOCs and that he can start construction.

You should not invest in a project where any of these approvals are missing. If the builder tries to avoid or divert your question, it’s a sign that the builder has not received approvals and is only trying to push the sale.

Once the project is complete, you should ask the builder whether he has received the completion certificate and occupancy certificate.

References

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About Team AY

Team AY is the editorial team of AssetYogi led by Mukul Malik. A small group of Real Estate enthusiasts, Team AY works hard everyday on a vision of making high quality Real Estate knowledge freely available.

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