Reform Update- Dealing with Construction Permits India (Both Delhi and Mumbai)
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1 Reform Update- Dealing with Construction Permits India (Both Delhi and Mumbai) Delhi Specific Reforms 1. Reform: MCD issued a circular on for reducing the number of procedures for construction permits for building plan approval till issuance of Occupancy-cum-Completion Certificate (OCC) from 29 (as noted in last year) to 8 Impact: The number of procedures for obtaining construction permit and all other clearances has been reduced from 29 (as observed last year) to 8 and timeframe has been reduced from 238 days (as observed last year) to 60 days. The following procedures listed in last year s report have been eliminated: i. Obtain a certified copy of the property record ( e-9d77-41ce-a56be48a08c441f1&filename=circular%20reg%20requirement%20of%20documentsonline%20sanction%20of%20building%20plans-eodb%20dated% ) ii. Request and obtain consent to establish from Delhi Pollution Control ( d-ce3e-4124-a3dd- 6526a037b02c&fileName=Office%20Memorandum%20of%20DPCC%20regarding%20EODB% 20dated%2008/02 iii. Obtain no objection certificate regarding land use per the zoning plan ( e-9d77-41ce-a56be48a08c441f1&filename=circular%20reg%20requirement%20of%20documentsonline%20sanction%20of%20building%20plans-eodb%20dated% ) iv. Request and obtain approval of the water and sewer connection plans (This has been integrated in CAF) v. Obtain certificate of no tax due ( e-9d77-41ce-a56be48a08c441f1&filename=circular%20reg%20requirement%20of%20documentsonline%20sanction%20of%20building%20plans-eodb%20dated% ) vi. Notarize the affidavit/undertaking ( c b87-ac399debebef&fileName=Circular%20reg.%20eundertaking%20under%20EODB%20Dated% ) vii. Request no objection certificate from Electricity Department (This is not required as per MCD circular dated available at d-4281-b28f- 4e52051df666&fileName=Circular%20regarding%20No%20Requirement%20of%20NOC%20fr om%20djb%20&%20discom%20for%20online%20plans%20dated% ) viii. Obtain no objection certificate from Planning Department within the Municipal Corporation of Delhi (This is not required as per MCD circular dated available at e-9d77-41ce-a56b- Page 1 of 13
2 e48a08c441f1&filename=circular%20reg%20requirement%20of%20documentsonline%20sanction%20of%20building%20plans-eodb%20dated% ) ix. Receive inspection from the Electricity Department (This is not required as per MCD circular dated available at d-4281-b28f- 4e52051df666&fileName=Circular%20regarding%20No%20Requirement%20of%20NOC%20fr om%20djb%20&%20discom%20for%20online%20plans%20dated% ) x. Request and obtain building plans approval from the Director of Factories of Labor Department (This is integrated with CAF and the applicant is not required to apply separately) xi. Obtain NOC from the Forest Department. (This has been integrated with CAF). xii. Request and obtain no objection certificate from Fire Department (This has been integrated with CAF and the applicant is not required to apply separately) xiii. Receive inspection by building section (This requirement has been done away with in UBBL 2016). xiv. Submit commencement notice to the Municipal Corporation of Delhi (This has been done away with in UBBL 2016) xv. Submit Notice of commencement and completion to Labour Inspector (This requirement has been done away with in UBBL 2016 and required to give notice separately. MCD informs Labour Department online). xvi. Submit notice of completion upto the plinth level (This has been made online as part of CAF). xvii. Request and receive inspection upto the plinth level (This has been made online as part of CAF). xviii. Request water and sewer connection approval (This is integrated with COCCRF and the applicant is not required to apply separately). xix. Receive on-site inspection for water and sewer connection and receive approval (This is made part of COCCRF and not to be done separately) xx. Request final no objection certificate from the Fire Department (Fire department is integrated with the MCD online system and made part of COCCRF. The applicant is not required to apply separately) xxi. Notarize the affidavit/undertaking to request the occupancy permit (The process is now integrated with the online system under COCCRF) Effective Date: 3 January ec97-4c84-bc42-9a38bb093b0c&filename=circular%20regarding%20reduction%20in%20the%20number%20of% 20procedures%20and%20Time%20in%20EODB%20Dated%2003/01 2. Reform: Qualification of professionals and accreditation to Professional Bodies for sanction of building plan was notified by MCD through circular dated Impact: Defining the criteria of qualification and certification requirement of professionals (Architect, Engineer, Structural engineers) engaged in building plan approval process has positive impact on the building quality control index Effective Date: 30 January Page 2 of 13
3 384d-46dd ad01287cb&fileName=Circular%20regarding%20Qualification%20of%20Professionals%20for %20sanction%20of%20Building%20Plans%20dated%2030/01 3. Reform: Inspection for plinth level was fast-paced through risk based classification MCDs through circular dated Impact: The recent notification by the MCD on risk based classification and fast pacing building plan approval, inspection and OCC has resulted in positive impact on Building Quality Control Index. It has reduced the time taken for obtaining building plan and OCC significantly. In case of warehouse which falls under the category of low and low risk buildings, the architect/ engineer/ supervisor shall conduct inspection for OCC and shall submit the inspection report to the sanctioning authority. No inspection is conducted by any agency (Clause of UBBL 2016 available at %205th%20April% pdf) Effective Date: 30 January b4863fecea32&filename=circular%20regarding%20risk%20based%20inspection%20for%20plint h%20level%20intimation%20dated%2030/01 4. Reform: Requirement of documents for sanction of building plan was reduced by MCD through circular dated Effective Date: 23 February d77-41ce-a56be48a08c441f1&fileName=Circular%20reg%20Requirement%20of%20documentsonline%20Sanction%20of%20Building%20Plans-EODB%20dated% Reform: An amendment of UBBL was notified on This amendment has introduced various new provisions for Ease of Doing Business in construction permits including those which have already come in force through MCD circulars listed above from 2 to 5 Effective Date: 5 April Reform: As per amended UBBL, complete process of building plan approval up to issuance of Occupancy-cum-Completion certificate (OCC) is to be completed in following 8 procedures: i. Submission of application for sanction of building plan in Common Application Form (CAF) along with building permit fees, drawings and documents ii. Grant of sanction within stipulated period iii. Payment of requisite fees & charges, as applicable, and release of sanctioned building plan iv. Intimation of completion of work up to plinth level v. Plinth level inspection followed by issue of plinth level inspection certificate. Page 3 of 13
4 vi. Submission of application for issue of Occupancy-cum-Completion Certificate (OCC) in Common-Occupancy-cum-Completion Certificate Request Form (COCCRF) along with requisite fees, drawings and documents vii. Inspection by all concerned departments viii. Intimation of compounding fee and charges, if applicable, and release of OCC and completion plan Impact: The number of procedures for obtaining construction permit and all other clearances has been reduced from 29 (as observed last year) to 8 and timeframe has been reduced from 238 days (as observed last year) to 60 days. Effective Date: 5 April Reform: As per amended UBBL, building plan approval has to be mandatorily granted within 30 days, else deemed approval is to be granted Impact: This has streamlined the process and ensured fixed timeline for granting approvals. Effective Date: 5 April Reform: As per amended UBBL the plinth level inspection has to be mandatorily completed within 07 days, else deemed approval is to be granted Impact: This has streamlined the process and ensured fixed timeline for granting approvals. Effective Date: 5 April Reform: Common application form (CAF) capturing all requirements for building plan approval for the Municipal Corporation and also for all internal/external agencies for granting No Objection Certificate (NOC)/clearances such as Airports Authority of India (AAI), National Monuments Authority (NMA), Delhi Urban Arts Commission (DUAC), Heritage Conservation Committee (HCC), Delhi Metro Rail Corporation (DMRC), Delhi Pollution Control Committee (DPCC) etc. has been operationalized. CAF also includes an online calculator, for building proponents to calculate fees/charges online and make payment online at one place which is transferred to concerned agencies by MCD by using e-payment system Impact: This has streamlined the process thereby reducing procedures and manual intervention. Effective Date: 31 March 2015, 20 March Page 4 of 13
5 1eaf-4fcc-af8ec5b2398a7494&fileName=Circular%20regarding%20Integration%20of%20NOC%20Departments %20%20Dated%2031/03/ e0-4f35-9a3a- 2c2b95877fea&fileName=Circular%20regarding%20Integration%20of%20DPCC%20&%20Forest %20Deptt.%20with%20CAF%20of%20MCD%20Dated% Reform: Municipal Corporation has operationalized online single window system for complete process, i.e. building plan approval, plinth level inspection and Occupancy-cum-Completion Certificate (OCC) which integrates seamlessly with all internal/external agencies Impact: This has streamlined the process thereby reducing procedures and manual intervention Effective Date: 31 March 2015, 30 January 2017, 20 March eaf-4fcc-af8ec5b2398a7494&fileName=Circular%20regarding%20Integration%20of%20NOC%20Departments %20%20Dated%2031/03/ b4863fecea32&filename=circular%20regarding%20risk%20based%20inspection%20for%20plint h%20level%20intimation%20dated%2030/01/ e0-4f35-9a3a- 2c2b95877fea&fileName=Circular%20regarding%20Integration%20of%20DPCC%20&%20Forest %20Deptt.%20with%20CAF%20of%20MCD%20Dated% Reform: There is an online common occupancy-cum-completion requirement form (COCCRF) which captures requirement of all agencies for granting OCC. This certificate is to be granted mandatorily within 22 days (15 days for inspection + 07 days for processing by MCD) Impact: This has streamlined the process and ensured fixed timeline for granting approvals Effective Date: 3 January 2017 and 5 April %20sanction%20of%20Building%20Plans%20dated%2030/01 Page 5 of 13
6 12. Reform: Therefore, maximum time in completing all the processes from building plan approval till issuance of OCC has been restricted to less than 60 days under bye-laws Impact: This has streamlined the process and ensured fixed timeline for granting approvals Effective Date: 3 January %20sanction%20of%20Building%20Plans%20dated%2030/ Reform: MCD has defined the criteria of qualification/certification/experience requirement of professionals (architects, engineers, structural engineers, etc. - engaged in building plan approval process) Impact: Defining the criteria of qualification and certification requirement of professionals (Architect, Engineer, Structural engineers) engaged in building plan approval process will have positive impact on the index of quality of regulations. A score of 2 should be assigned to question "What are the qualification requirements for the professional who supervises the construction on the ground?" Effective Date: 30 January %20sanction%20of%20Building%20Plans%20dated%2030/ Reform: MCD has introduced system of risk based classification in the amended UBBL for all categories. These classifications are used for fast-pacing the building plan approval, inspection and grant of occupancy-cum-completion certificate (OCC) Impact: The recent notification by the MCD on risk based inspection is expected to result in a positive score on the Quality control during construction index and reduce the time taken for obtaining completion/occupancy certificate. A score of 2 should be assigned for the question "What types of inspections (if any) are required by law to be carried out during construction?" Effective Date: 22 March 2016 and 5 April 2017 UBBL-2016 is available on the link: f52b-4a03-a96c- 8c067191ff3e&fileName=Unified%20Building%20Bye%20Laws%20for%20Delhi% Amended UBBL is available on the link: 15. Reform: In the amended UBBL, there is a provision for latent defect liability for architects/structural engineers/site engineers/construction company for structural flaws found after the building is brought into use Page 6 of 13
7 Impact: A score of 1 should be assigned to question "Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)?" Effective Date: 5 April 2017 Clause 2.10(a) of the amended UBBL, available on the link: 16. Reform: The amended UBBL has made provision for requirement of decennial professional indemnity insurance to cover for structural flaws after use for different professionals engaged in building construction, i.e. architects/contractors/structural engineers, etc. Impact: A score of 1 should be assigned to question "Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? " Effective Date: 5 April 2017 Clause 2.10(b) of the amended UBBL, available on the link: 17. Reform: Delhi Jal Board (DJB) has revised infrastructure charges for commercial/industrial connections thereby reducing the cost burden on the applicant very significantly Impact: The recent notification has abolished infrastructure costs for water/sewer and clarifies that there are no development charges for water and sewer. Consequently, the costs for the water and sewer approval have reduced. Effective Date: 18 January aeabf78752&fileName=Circular%20of%20DJB%20Regarding%20Reduction%20in%20Connecti on%20charges%20dated%2018/ Reform: No NOC is required from DJB for building plan approval Impact: Delhi Jal Board has eliminated the requirement to request and obtain an approval (NOC). This has reduced the total number of procedures in obtaining construction permit in Delhi. Consequently, the procedure stands eliminated. Effective Date: 30 March d-4281-b28f- 4e52051df666&fileName=Circular%20regarding%20No%20Requirement%20of%20NOC%20from %20DJB%20&%20DISCOM%20for%20Online%20Plans%20Dated% Page 7 of 13
8 19. Reform: Now, there is no requirement for getting NOC from Delhi Pollution Control Committee (DPCC) for installing DG sets Impact: This has eliminated the procedure 2 of applying for a NOC for DG sets. This has reduced the procedure by 1 and associated cost to 0. Effective Date: 8 February ce3e-4124-a3dd- 6526a037b02c&fileName=Office%20Memorandum%20of%20DPCC%20regarding%20EODB%20d ated%2008/ Reform: NOC requirement of different external agencies like Airports Authority of India (AAI), National Monuments Authority (NMA), Delhi Metro Rail Corporation (DMRC), Delhi Urban Art Commission (DUAC), etc. have been mapped as Colour-Coded Zonal Map (CCZM) on GIS platform superimposed on Delhi s GIS Map. Therefore, now building proponent can find out their NOC requirements online for the building falling in particular Colour-coded Zone. NOC is not required from such agencies for which building falls outside their Colour-coded Zones Effective Date: 31 January %20of%20the%20NOC%20Departments%20dated%2031/ Reform: Whole process has been significantly simplified and made user friendly. Requirement of affidavits has been done away with. There is no need of submitting notarized certificates Impact: Eliminated procedure 6, to notarize the affidavit/undertaking Effective Date: 6 March Reform: Building proponents are being issued approved building plans online with digital signature, which is available online in downloadable format Impact: This has streamlined the process and certificate can be download online without requirement of physical visit to the office. Effective Date: 4 April e f-8e &filename=circular%20regarding%20caf%20&%20digital%20signatures%20in%2 0EODB%20dated%2004/04/ Reform: Certified/licensed architect, engineer, private and external firm of certified architects and/or civil engineers are required to verify the compliance of the building plans with existing building regulations Page 8 of 13
9 Impact: A score of 1 should be assigned for the question "Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? " Effective Date: 22 March 2016 As per Chapter-3 of UBBL-2016, on basis of the risk based classification, the power of sanction / plinth inspection / completion has been delegated to the Architect / Engineer for certain type of buildings Mumbai Specific Reforms 1. Reform: Municipal Corporation of Greater Mumbai (MCGM) has and made provision for completing the whole process from building plan approval to issuance of Occupancy-cum- Completion Certificate (OCC) in following 08 procedures: i. Submit Online application in Common Application Form(CAF) along with Extract property Register Card (P.R. Card) downloading from Integrated Revenue Department Application & Design Plan, Pay Online Scrutiny Fee, Apply for NOC from Tree Authority, Storm Water Drain (SWD), Sewerage Operation (SO), Hydraulic Engineering (HE), Traffic & Coordination (T & C), Chief Fire Officer (CFO) and Electric Department (Parallel Online Processes) ½ Day ii. Receive Inspection and obtain NOC: Receive Inspection from Tree Authority, SWD, SO, T&C, HE Department, Obtain NOC Tree, SWD, SO, HE, CFO, Electric Department, Receive Concessions Approvals (Parallel online process) 22 days iii. IOD Process: Receive IOD and payment to be paid for CC 07 days iv. Obtain Plinth CC: Request and receive plinth inspection, obtain further C.C. ½ day v. Further CC: Request and receive plinth inspection, obtain further C.C. 7 Days vi. Common Completion Request Form (CCRF): Request completion NOC from Tree, SWD, SO, T & C, CFO 15 days vii. Request for OC/BCC: Request for an Occupancy Certificate (OC) and Building Completion Certificate (BCC) 1 day viii. Obtain OC/BCC: Receive Final Inspection and OB and BCC - 7 days Impact: The total number of procedures have been reduced from 42 (as noted last year) to 08 under the law and is being followed through online building plan approval system by MCGM. Following 36 procedures, listed in the last year s Doing Business Report, have now been eliminated: i. Obtain an extract of the Property Register Card (P.R. Card) from the Revenue Department (This has been integrated online with Single Window Clearance System) ii. Receive site inspection from building proposal office iii. Apply for NOC from Tree Authority iv. Apply for NOC from Storm Water and Drain Department v. Apply for NOC from Sewerage Department vi. Apply for NOC from Hydraulic Engineer Department (water-supply) vii. Receive inspection from Tree Authority viii. Receive inspection from Storm Water and Drain Department ix. Receive inspection from Sewerage Department x. Receive inspection from Hydraulic Engineer Department (water-supply) xi. Obtain NOC from Tree Authority xii. Obtain NOC from Storm Water and Drain Department xiii. Obtain NOC from Sewerage Department xiv. Obtain NOC from Hydraulic Engineer Department (water-supply) Page 9 of 13
10 xv. Request and obtain NOC from Electric Department xvi. Request and obtain NOC from Traffic and Coordination Department xvii. Request and obtain NOC from Chief Fire Office xviii. Labour NOC xix. Request and receive inspection of plinth xx. Request completion NOC from the Storm Water and Drain Department xxi. Request completion NOC from the Sewerage Department xxii. Apply for provisional water connection from Hydraulic Engineer xxii. Request completion NOC from Traffic and Coordination Department xxiii. Request completion NOC from Chief Fire Office xxv. Receive inspection from Storm Water and Drain Department xxvi. Receive inspection from Sewerage Department xxvii. Obtain water connection from Hydraulic Engineer xxviii. Receive inspection from Traffic and Coordination Department xxix. Receive inspection from Chief Fire Office xxx. Obtain completion certificate from Storm Water and Drain Department xxxi. Obtain completion NOC from Sewerage Department xxxii. Obtain completion NOC from Traffic & Coordination Department xxxiii. Obtain completion NOC from Chief Fire Office xxxiv. Receive final inspection from Building Proposal Office xxxv. Obtain occupancy certificate from Building Proposal Office (sub-engineer) xxxvi. Obtain final NOC from Hydraulic Engineer (Water) Department Effective Date: 6 March Engineer%20(Development%20Plan)/Docs/EODB%20Construction%20Permit%20Circular/Ease% 20of%20Doing%20Business/8%20Process%20Circular.pdf 2. Reform: MCGM has operationalized online building plan approval system with integration of all internal/external agencies from April Applicant is only required to submit common application form (CAF) which captures the requirements of Municipal Corporation and that of all internal/external agencies like AAI, NMA, Fire, storm water drain, sewage, Tree Authority, Revenue Department, etc. Impact: Average time being taken in granting building plan approval in last 6 months is around 10 days, due to integration of online system Effective Date: 1 April Reform: CAF also provides an online calculator on the website to calculate fees and charges for the building proponent. Provision has been made for online payment of all fees/charges to MCGM. This is transferred to concerned agencies through e-payment Impact: Enables reduced physical touch points due to online fee calculation and payment Effective Date: 8 September Reform: Timeframe for building plan approval has been fixed for 30 days, inspection for 07 days and OCC for 22 days, in all less than 60 days. There is a provision under Maharashtra State Right Page 10 of 13
11 to Service Act, 2015 to ensure that such time commitments are adhered to else the concerned officers is to be penalized under law Impact: The total time taken in complete process, i.e. building plan approval till OCC has been reduced from 164 days (as recorded last year) to 60 days Effective Date: Reform: Earlier, occupancy certificate was granted under Mumbai Municipal Act, 1888 and the completion certificate was granted under Maharashtra Regional Town Planning Act, 1966 thereby two certificates were being issued. Now, MCGM has merged both and only one certificate OCC is being issued online with digital signature Impact: The decision to merge completion and occupancy certificate has reduced the total time taken by 14 days and procedure by one 6. Reform: Government of Maharashtra (GoM) has amended DCR vide their notification under Section 154 of MR & TP Act dated for incorporation of Risk-Based Classifications in the DCR thereby fast-pacing building plan approval inspection and grant of OCC Impact: A score of 2 should be assigned for the question "What types of inspections (if any) are required by law to be carried out during construction?" Effective Date: 2 March Engineer%20(Development%20Plan)/Docs/EODB%20Construction%20Permit%20Circular/Ease% 20of%20Doing%20Business/Risk%20base%20approval.pdf 7. Reform: GoM has issued notification dated for providing latent defect liability and decennial professional indemnity insurance to cover infrastructure flaws found after the building is brought into use for the professionals who are held liable for such defects Impact: Now, provision has been made under law for latent defect liability after building is brought into use. Also, provision has been made for Decennial Professional Indemnity Insurance to the professionals to cover the liability for such flaws, if detected after use. A score of 1 should be assigned to question "Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)?" and a score of 1 should be assigned to question "Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? " Effective Date: 8 march Engineer%20(Development%20Plan)/Docs/EODB%20Construction%20Permit%20Circular/Ease% 20of%20Doing%20Business/Latent%20Defect%20Liabilty%20%20notification%20dt.8%20march % pdf 8. Reform: MCGM has amended online submission of site inspection video clip at various stages of building construction, thereby obviating the requirement of on-site inspection Impact: Submission of site videos has eliminated the requirement for site inspections reducing total time considerably Page 11 of 13
12 Effective Date: 23 February Engineer%20(Development%20Plan)/Docs/EODB%20Construction%20Permit%20Circular/Ease% 20of%20Doing%20Business/Online%20Submission%20of%20Site%20Inspection%20site%20inspe ction%20video%20clip%20at%20various%20stages%20of%20building%20proposal.pdf 9. Reform: MCGM has issued directive vide notification dated for incorporating online Common Completion Request Form (CCRF), which has been made operational through online building permission system Impact: Provision of Common Completion Request Form (CCRF) and making that available online has cut down time in getting occupancy-cum-completion certificate very significantly. Effective Date: 6 march Engineer%20(Development%20Plan)/Docs/EODB%20Construction%20Permit%20Circular/Ease% 20of%20Doing%20Business/8%20Process%20Circular.pdf 10. Reform: The requirement of Labour Department has been integrated in CAF Impact: This has eliminated procedure 21 Effective Date: 10 April Reform: Building permits are being issued online by MCGM with digital signature Impact: This has streamlined the process and certificate can be download online without requirement of physical visit to the office Effective Date: 9 September Reform: The Development Plan of Mumbai along with all plots has been mapped on GIS platform and the requirement for NOC from different agencies like AAI, NMA, etc. as Colour Coded Zonal Maps (CCZM) and have been superimposed on GIS Map of Mumbai. Hence, for every plot, building proponent can know which parts of common application form (CAF) is to be filled up. No NOC is required if the building area falls outside CCZM of any agency Impact: This has streamlined the process as no NOC is required if the building area falls outside CCZM of any agency Effective Date: 13 October Reform: Development charges payable for development of any land or building proposed for warehouse have been exempted to the extent of 90% Impact: Costs associated with development charges for warehouse reduced upto 90% Effective Date: 13 May eer%20(development%20plan)/docs/eodb%20construction%20permit%20circular/ease%20of% 20Doing%20Business/Exemption%20in%20Development%20Charges/Notification%20dt.13%20 Page 12 of 13
13 may%202015%20for%20waving%20of%2090development%20charges%20for%20warehouse_29.pdf 14. Reform: Certified/licensed architect, engineer, private and external firm of certified architects and/or civil engineers are required to verify the compliance of the building plans with existing building regulations Impact: A score of 1 should be assigned for the question "Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? " Effective Date: 29 December _(1.1).pdf 15. Reform: Cost of obtaining construction permits from building plan approval to OCC has reduced to INR 4,35,062 compared to INR 12,78,937 as observed in DBR 2017 Impact: The cost has reduced to 8.5% of warehouse value compared to 25% of warehouse value as observed in DBR 2017 Effective Date: 13 May 2015 Page 13 of 13
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