BENGALURU: While the government is advocating for vertical growth to address the soaring demand for urban housing, developers are reporting that prolonged approval delays and bureaucratic hurdles are hindering project execution and delaying home deliveries.
Recently, Karnataka has eased occupancy certificate (OC) regulations. Initially, residential buildings on plots up to 1,200 square feet were exempted from the OC requirement for electricity connections, which was later expanded to plots of up to 2,400 square feet, given they have approved building plans and adhere to basic compliance requirements. Additionally, the state is pushing for expedited, systematized online approvals to reduce delays in sanctioning building plans.
Despite these improvements, builders argue that many projects still face uncertainty and significant delays in obtaining OCs, particularly larger developments that typically experience longer processing times.
Credai Karnataka has reached out to the chief minister and the urban development minister, requesting intervention to address the approval delays affecting housing projects statewide.
Bhaskar T Nagendrappa, president of the Credai Karnataka chapter, stated: “The Town Planning Act mandates that local planning authorities hold monthly meetings to approve projects. However, delays of several months in cities such as Ballari and Mysuru are disrupting project approvals, postponing home deliveries, and creating challenges for both builders and homebuyers. We have discussed this issue with the ministers, who promised to consider our concerns and have asked us to submit a detailed representation, which will be provided next week.”
Builders have expressed to TOI that challenges such as e-khata delays, inconsistent regulations causing procedural deadlocks, irregular planning meetings, and delays in approvals and occupancy certificates are negatively impacting cash flow and investor confidence. They also highlighted issues with lengthy no-objection certificates (NOCs), conditional clearances from utility agencies, and protracted approvals from departments like fire services, pollution control, and civil aviation. They are advocating for fixed timelines, streamlined processes, and improved coordination to foster vertical development and timely project execution.
One builder mentioned, “The transition of development approvals from the BDA to GBA, alongside frequent bylaw amendments, has led to delays in sanctions, necessitating redrawing and resubmissions. Six of my projects in Jakkur, Electronics City, and Sarjapur Road have been pending for six months, whereas they previously would have been approved in 15 days to two months.”
