10 Major Real Estate Legislation & Regulations in Hyderabad to Consider

For any real estate project development, approvals from the jurisdictional planning authorities are a must. Know-how on the property jurisdiction, build potential of land and sequencing of development NOCs and relevant Real estate legislation and regulations in Hyderabad is likely to save on resources. Here, in this article, we would be discussing 10 things to consider while going through Building Layout Approval process in Bengaluru for a new real estate development.

1. Understand the Jurisdiction of the Property

Within Bengaluru Metropolitan Region (BMR) there are three major jurisdictional boundaries. Understanding the jurisdiction of the property is important as one would understand which Comprehensive Development Plan (CDP) or Master Plan to be followed. Also, these authorities’ issue and validate the development approvals

  • Bruhat Bengaluru Mahanagar Palike (BBMP) and Bangalore Development Authority (BDA): Applicable when the property is located within BDA limits
  • Local Planning Authorities (LPAs) and Benguluru Metropolitan Region Development Authority (BMRDA): Applicable when the property is located within BMRDA limits and outside of BDA limits. There are 13 LPAs (including BDA) within BMR
  • Karnataka Industrial Areas Development Board (KIADB): When the land is allotted by KIADB irrespective of its macro-jurisdiction

Do you know real estate statutory authorities in Bengaluru Metropolitan Region? 

2. Assess the Build Potential of the Property

In Bengaluru Metropolitan Region (BMR) build potential of the property is assessed as follows:

  • Developable Extent of land x Permissible FAR = Permissible Built-up Area (BUA)
  • Permissible BUA x Minimum Permissible Ground Coverage = Minimum Permissible Number of Floors

Note: FAR is the Floor Area Ratio of Floor Space Index (FSI). In BMR FAR is dependent on the land-use and approach road width for the property (at the time of applying for sanction). FAR for properties within BDA depending upon the land-use can be found in Volume – III, Zoning Regulations, Revised Master Plan, 2015, Bangalore, 2007. For 12 other LPAs, respective Master Plan or CDPs to be referred.

3. Understand the Developable Extent of the Land 

  • A detailed technical due diligence to understand the buildability of the property is one of the crucial steps to assess the development potential of the property.
  • As a first step, Survey Sketch of the property can be sourced from the Survey Settlement and Land Records Department (SSLRD) wing of the Revenue Department. A survey sketch indicates exact dimensions of the property. A survey sketch helps one assess the A-Kharab and B-Kharab extent within the property.
  • Presence of B-Kharab, any geographic or man-made constraints are likely to restrict the build potential of the site.
  • Description of A & B Kharab lands
    • A – Kharab: The Land parcel which is not for agricultural purpose and can be used for development purpose is known as A-Kharab area. A-Kharab land can be converted for Non-Agricultural purpose.
    • B – Kharab: The land parcels which are unfit for cultivation as well for development purpose are classified as B-Kharab land. Physical constraints are classified as B-Kharab include Foot path (Kalu Dari), Cart Road (Bandi Dari), Drains, Deep valley zones, Green Zone area (state forests) and Hill or rocky structures.

4. Understand the B-Kharab Extent

  • Physical & geographic constraints which are classified as B-Kharab include Foot path (Kalu Dari), Cart Road (Bandi Dari), Drains, Deep valley zones, Green Zone area (state forests) and Hill or rocky structures.
  • It is important to understand the constraints and its mitigation strategy. All the constraints indicated as B-Kharab are No-development zones and in addition a buffer area based on the classification of the Kharab must be ear-marked as a No-development zone.
  • Also, re-alignment strategies for Foot path, Cart Road and Tertiary Drains can be evaluated – however, deep-valley zones, Green Zone area and Primary & Secondary Drains cannot be re-aligned.

5. Study the Site Precincts

A few physical constraints within the property or in proximity to the property needs a thorough evaluation as these could impact the development potential of the property

  • Presence of a high-tension or a gas pipeline: Area under the high-tension line / gas-pipeline line is ear-marked as No-development zone. Further, depending upon the prevailing norms, buffer areas around the high-tension line / gas pipeline as stipulated must be ear-marked as a No-development zone.
  • Road widening: It is important to understand if there is any road widening proposal for the property under evaluation. Advantage of road widening – higher permissible FAR and the disadvantage being loss of land. However, for smaller land parcels (less than 1-acre) road widening proposals must be cautiously evaluated as at times it may not be possible to achieve the higher FSI while keeping the functional or design elements intact for a development.
  • Site Precincts:
    • Precincts of the site have to be carefully evaluated. Proximity to an Airport or an Aerodrome, National Monument and Military establishment is likely to restrict the height of the development.
    • Proximity to a Railway Line, Metro-line, National Highway, Petrol Pump / Gas Station needs to be studied carefully considering the buffer requirements as suggested by respective Government Agencies.
  • Lakes: Proximity to lake must be thoroughly checked as a buffer zone indicated as per the prevalent CDP / Master Plan or prevalent Real Estate Legislation and Regulations must be left from the edge of the lake as a No-Development Zone. 

6. Prepare for Development Approvals

 In BMR, it is mandatory for the land to be converted for non-agricultural purposes prior to proceeding for any development approvals. In case the land is an agricultural land, conversion to non-agricultural purposes is mandatory. Basis the land-use indicated in the CDP and the envisaged use, Conversion and / or Change of land-use might be required. 

  • Conversion Order: Conversion order is required, in the case where the land-use as per the prevailing CDP is the same as the use envisaged. Conversion orders are issued by the Revenue Department and it takes 3 – 6 months to receive the same.
  • Change of Land-use: In the case when the status of land as per Revenue Records is Non-agricultural and zoning as per the CDP is different from the envisaged use of the land; Change of Land-use is required. Approval for Change of Land-use is issued by the Chief Minister’s Office or the Presiding Government Officer and is routed through BDA, BMRDA, LPAs &/or KIADB. Timeline for availing Change of Land-use can vary between 6 and 9 months.
  • In a few cases, conversion order is mandatory after procuring CLU. For an instance:
    • Status of land as per revenue records is agricultural land. Land-use as per prevalent CDP is commercial and stipulated development type is residential. In this case as a first step, CLU is required followed by a Conversion Order (CO). 

7. Understand the Approvals Required Depending Upon the Size of the Development 

  • Building Plan Approval is mandatory for all developments (building size exceeding 2,400 sqft).
  • In addition to the Building Plan approval, Development Plan (DP) Approval:
    • Required in case the land area exceeds 20,000 SqM within BDA limits
    • Within BMRDA (outside of BDA) it is required if the plot area exceeds 1 Ha.
  • For plotted developments, a Layout Sanction is required wherein land area exceeds 2.5-acres. 

8. Prepare a Gantt Chart for Pre-construction No Objection Certificates (NOCs) 

  • Depending upon the type of development, number of pre-development NOCs within BMR range from 5 – 23.
  • Sequencing of NOCs will enable faster turnaround time in receipt of all the necessary development approvals.
  • NOC from Ministry of Environment and Forests (MoEF) is required prior to commencing construction in case the development size exceeds 50,000 SqM for residential / commercial developments.
  • A few NOCs can be availed upon preparation of draft plan, a few NOCs can be availed post receipt of other NOCs. For an instance, application to avail Water NOC is important to receive Consent for Establishment of STP.
  • While applying for Building Plan availability of valid NOCs is mandatory. In case there is a delay, it is important to renew the NOCs that are no longer valid.
  • For an apartment project, without a Development Plan, estimated time in receiving approvals varies between 8 – 9 months. Over and above this, RERA approval takes a minimum of 45 days up to 60 days.

9. Understand the NOCs Required for Project During Construction and upon Completion

  • In case the developer or the owner intends to construct the property in-house, it is mandatory for them to avail the labour license
  • Also, upon completion of construction until plinth level, it is advisable to avail the Commencement Certificate.
  • Upon completion of the project, Occupancy Certificate to be availed for built projects. For plotted development projects, a release order from LPA / BDA / BMRDA / KIADB is necessary.

10. Keeping Abreast with any Change in Real Estate Regulations 

  • All the statutory Government Orders are subject to change. It is extremely important to be informed about the change or up dation of Government Orders. For an instance,
    • On June 16, 2021, Insertion of rule 37-E. In the Karnataka Planning Authority Rules, 1965, after rule 37-D, the following shall be inserted, namely, “37-E Charges to be levied in case of permission for utilizing Premium FAR”. However, the impact zone areas are yet to identified.
    • Similarly, vide document DPAL 26 Shashana 2021, Bengaluru Dated 05.07.2021 the plotted developments in BMR can be issued Release Orders in two tranches depending upon completion milestones – 40% and 60%.
  • Apart from the GOs, it is important to understand the prevalent market practices. For an instance,
    • NOC from Telecom may not be mandatory depending upon the property jurisdiction.
    • Though the lake and drain buffers are lesser in BMRDA, in many cases liaison team indicates development of the property considering buffers as suggested by BDA regulations.

Meraqi’s handbook Government Regulations, Regulatory Requisites and Building Plan Approval Process for Real Estate Developments in Bengaluru Metropolitan Region covers applicable regulatory requisites required during the entire lifecycle of a real-estate project (pre-construction, construction & post completion) in Bengaluru Metropolitan Region (BMR). The handbook also includes the standard regulatory practices and procedures involved in developing different real estate projects including residential, commercial, institution, and warehouse developments in Bengaluru.

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