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The Bihar government is preparing to introduce mandatory map approvals for apartments and multi-storey residential projects in rural areas to regulate rising construction activity outside municipal limits. The proposed rules, being drafted by the Panchayati Raj Department, are aimed at improving planning, construction safety and transparency in village housing projects. The state is also considering a RERA-like system for larger rural developments, including project registration, escrow account norms and compensation provisions for delayed possession. The move comes as real estate activity increases in rural pockets near Patna and other fast-growing urban centres in Bihar.
The Bihar government is planning to make map approvals compulsory for apartments and multi-storey building projects in rural areas as the state looks to regulate increasing real estate development outside city limits. The proposed rules are being prepared by the Panchayati Raj Department and are currently in the final stage before being sent for legal clearance and cabinet approval.
The move comes amid a sharp rise in residential construction activity in villages and peri-urban areas surrounding Patna and other growing cities in Bihar. Officials have observed that several apartment and multi-storey housing projects are coming up in rural areas where building regulations and planning oversight are currently limited.
Under the proposed framework, developers constructing apartments or buildings above two floors in rural areas will have to obtain mandatory building map approvals before starting construction work. Such projects are also expected to require a No Objection Certificate from the concerned authority. Individual village homes with up to two floors are likely to remain outside the approval requirement.
The Bihar government is also considering the creation of a separate regulatory mechanism on the lines of the Real Estate Regulatory Authority for monitoring rural housing projects. According to the proposal, projects developed on land parcels larger than 500 square metres may need compulsory registration with the proposed authority before launch or sale.
As part of the proposed rules, developers may also be required to deposit 70% of the funds collected from homebuyers into a dedicated escrow account linked to the project. The amount can only be used for construction and development of that particular project. The provision is aimed at improving financial discipline and reducing project delays.
The proposed rural real estate rules are also expected to strengthen homebuyer protection measures in Bihar. Builders may have to provide complete project details, including carpet area, built-up area, approvals, project layout and construction status to buyers before sales. In case of delays in project delivery, developers could face penalties and may be required to pay compensation with interest to homebuyers.
The draft framework further proposes a five-year liability period for structural defects and construction-related issues after project completion. This provision is intended to improve construction quality and accountability in rural housing developments.
The latest proposal is part of Bihar’s broader push to improve urban planning and regulate fast-growing real estate markets around expanding cities. Over the past year, the state government has also introduced geo-spatial approval requirements for infrastructure projects above INR 50 crore to improve project planning and land-use management.
The state has been witnessing growing interest in residential development due to infrastructure expansion, proposed satellite townships, road connectivity projects and industrial growth plans. Real estate activity has especially increased in areas surrounding Patna, where rising land prices and urban expansion are pushing housing development towards nearby rural regions.
Industry experts believe the proposed approval system could bring better transparency and planning standards to rural real estate projects, which currently operate with lower regulatory monitoring compared to urban developments governed by municipal building laws and RERA regulations.
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