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The Uttar Pradesh government has introduced new guidelines regarding the purchasable floor area ratio (FAR) in an effort to curb unauthorised constructions and streamline the approval process. The guidelines state that any additional FAR must be purchased prior to construction, as opposed to the previous practice of buying FAR after construction, which often led to disputes and legal issues. The move is aimed at promoting transparency, reducing violations, and ensuring that builders adhere to sanctioned layout maps from the outset of the construction process.
Until now, developers in multi-storey buildings could apply for additional FAR in case of slight deviations from the sanctioned layout map. However, this practice faced challenges, including complaints from residents about violations and difficulties in regularising additional built-up areas by realtors. The new guidelines mandate the purchase of FAR before construction begins, preventing the need for post-construction applications for completion certificates. This shift aims to streamline the process, minimise disputes, and ensure that the Greater Noida Development Authority (GNDA) can regulate construction effectively.
Under the current regulations, the permissible FAR for plotted developments and group housing is 1.5 FSI (floor space index) in the city and 2.5 on its outskirts, with purchasable FAR allowed only on 25% extra construction in the built-up area and 33% in open areas. The new guidelines restrict realtors to purchasing FAR only once, at the time of submitting the project map for approval. Any additional construction identified during inspections or otherwise will be subject to demolition. The completion certificate will only be issued when the development authority is satisfied that the construction aligns with the approved project map.
In addition to the changes in FAR regulations, the government has introduced amendments to project renewal fees, allowing developers to pay fees only for the unfinished portion of a project after the stipulated construction period. This modification is expected to benefit developers of stalled real estate projects in Noida and Greater Noida. Previously, renewal fees were charged for the entire project if it remained unfinished after the initial construction period and a subsequent extension.
The government's initiatives aim to create a more transparent and accountable system for real estate development, addressing issues related to unauthorised construction, disputes, and delays in project completion. Also, with the renewal fees to be now paid only for the unfinished portion of the project, it would be a big relief to developers and will encourage the completion of stalled projects. These changes are expected to contribute to the overall efficiency and integrity of the construction and real estate development process in Uttar Pradesh.
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