Uttar Pradesh tightens regulations, forcing developers to purchase FAR before construction. Impactful changes include the demolition of unauthorised structures and revamped project renewal fees.
The Uttar Pradesh government has revamped rules governing the purchase of floor area ratio (FAR), signalling a shift in the construction landscape. The new guidelines categorise any additional FAR applied after construction as illegal, with the potential for demolition—a practice prevalent in the National Capital Region (NCR).
Previously, developers could acquire FAR for multi-storey buildings in cases of slight deviations from the sanctioned layout map. However, this led to complications, including resident complaints about violations and challenges in regularising additional built-up areas. To address these issues, the government now mandates the prior purchase of FAR for any additional construction.
The permissible FAR for plotted developments and group housing is 1.5 FSI within the city and 2.5 on the outskirts, with the rate set at approximately 40% of the land rate. Purchasable FAR was allowed only on 25% extra construction in the built-up area and 33% in open areas.
An official from the Ghaziabad Development Authority (GDA) highlighted the disputes and losses incurred in cases where developers sought purchasable FAR post-construction. The new guidelines streamline the process by allowing realtors to purchase FAR only once during the submission of the project’s map for approval. Any extra construction identified during the inspection will face demolition.
The government has also introduced changes to project renewal fees, benefiting developers of projects in Noida and Greater Noida. Under the new rules, realtors will pay renewal fees only for the unfinished part of a project after the five-year construction period and a subsequent three-year extension.
