The Noida Authority plans to amend bylaws to prevent developers from constructing up to the maximum purchasable Floor Area Ratio (FAR) without prior approval. Developers currently build up to the basic FAR and later add floors, paying fines afterwards. Proposed measures include prohibiting construction up to purchasable FAR without permission and increasing fines from INR 200 to INR 2,000 per square metre. These changes aim to ensure compliance with approved plans, safeguarding green spaces, parking, and building standards. The amendments seek to regulate development practices, enhance project quality, and protect homebuyers' rights in Noida.
The Noida Authority is considering amending its bylaws for various project categories to prevent developers from carrying out constructions up to the maximum purchasable Floor Area Ratio (FAR) without obtaining prior permission or getting their layouts approved. FAR, or floor area ratio, refers to the ratio of the total area allocated for a project to the built-up area.
For example, if a builder is allotted 10,000 square metres for a group housing project, and the approved layout allows construction on 5,000 square metres, this implies that the total ground area used is 50%. If the developer has permission to build up to 10 storeys on these 5,000 square metres, the total area covered by these floors would be 50,000 square metres (5,000 square metres x 10 floors). When this total built-up area is divided by the total area allotted for the project (10,000 square metres), it results in a purchasable FAR of 5.
An official explained that if the purchasable Floor Area Ratio (FAR) for a project is 5, builders often initially construct on 2.5 FAR after getting the layout approved. Subsequently, they build additional floors up to the purchasable FAR and approach the Authority afterwards, agreeing to pay the necessary compounding fee or fine. This practice, officials noted, amounts to "jumping the gun" and can compromise other essential aspects of a project, such as green and common areas, parking space, and building height.
To address this issue, the Authority is exploring two potential measures. Firstly, it may prohibit construction up to the purchasable FAR without prior permission. Secondly, it may increase the compounding fee or fine from INR 200 per square metre to INR 2,000 per square metre to deter such unauthorised constructions. These proposals will be discussed at the Authority's next board meeting.
Ideally, developers intending to undertake additional construction after utilising the basic FAR should first apply to the Authority. The application process involves evaluating various aspects, such as parking provisions, environmental clearance, fire safety, clearance from the Airports Authority of India for the building's height, and verification of the structural design by reputable institutions such as IIT, NIT, or any government engineering college. Following this evaluation, the Authority reviews the application and presents a report, along with the calculation of the purchasable FAR fee, to the CEO. If the CEO approves, the map with the purchasable FAR is sanctioned after the fee is deposited.
Gaurav Gupta, the general secretary of Credai (NCR), noted that the practice of adding floors without approval was more common before the implementation of the UP-Rera Act in 2017. According to Gupta, under the Rera Act, developers are required to provide all project details in advance, specifying whether they intend to construct up to the basic FAR or the purchasable FAR. He added that builders now exercise more caution, as additional construction after selling a project to homebuyers is cumbersome and requires a no-objection certificate (NOC) from two-thirds of the homebuyers.
These amendments are expected to ensure that construction projects in Noida adhere to approved plans and maintain the necessary standards for green spaces, parking, and safety. By tightening regulations and increasing penalties for non-compliance, the Noida Authority aims to promote responsible development practices. The proposed changes reflect the Authority's commitment to ensuring that developers adhere to the rules, thereby safeguarding the interests of homebuyers and the community.
In conclusion, the Noida Authority's proposed amendments to its bylaws are a significant step towards regulating the construction practices of developers. By requiring prior approval for maximum purchasable FAR and increasing fines for violations, the Authority aims to prevent unauthorised constructions and ensure compliance with planning norms. This move is expected to enhance the quality of developments in Noida, promote sustainable urban growth, and protect the rights of homebuyers.