Approval Logjam Leaves Bengaluru Real Estate Sector In Limbo
ECONOMY & POLICY

Approval Logjam Leaves Bengaluru Real Estate Sector In Limbo

Approval delays in Bengaluru have created a logjam that is affecting developers and homebuyers across the city. Industry insiders report that building plan approvals and occupancy certificates (OCs) are processed by the Greater Bengaluru Authority (GBA), while change of land use applications require clearance from the urban development department (UDD). Builders have told industry bodies that delays are occurring at both the GBA and the UDD, which may indicate a lack of work allocations rather than problems confined to a few projects.

The backlog has slowed project completions and delayed issuance of an occupancy certificate, which is required to obtain an e-khata and for developers to hand over properties to buyers. By contrast, the Bangalore Development Authority (BDA) and the Bangalore Metropolitan Region Development Authority (BMRDA) are said to be processing applications without major hold-ups. Developers report that approvals previously handled centrally are now split among five corporations, each following differing procedures, creating confusion and inconsistency in processing.

Builders have attributed the bottleneck in part to the ongoing Special Intensive Revision (SIR) of electoral rolls and to administrative changes following the formation of the GBA, which assumed planning powers earlier held by the BDA. GBA officials have suggested that delays could be limited to cases where applicants failed to submit required no-objection certificates or where applications contained deficiencies. Developers reject that account, saying the problem is widespread and that no meeting on approving change of land use applications has been convened for the past two months.

The Confederation of Real Estate Developers' Associations of India (CREDAI) has been approached by industry representatives seeking clarity and resolution, and developers say repeated follow ups by homebuyers add to the pressure. Industry sources contend that while some authorities continue to function efficiently, the current split of responsibilities among municipal bodies has led to procedural unevenness and a practical freeze in several cases. Stakeholders are urging a coordinated remedy to restore predictability so projects can proceed and certificates be issued.

Approval delays in Bengaluru have created a logjam that is affecting developers and homebuyers across the city. Industry insiders report that building plan approvals and occupancy certificates (OCs) are processed by the Greater Bengaluru Authority (GBA), while change of land use applications require clearance from the urban development department (UDD). Builders have told industry bodies that delays are occurring at both the GBA and the UDD, which may indicate a lack of work allocations rather than problems confined to a few projects. The backlog has slowed project completions and delayed issuance of an occupancy certificate, which is required to obtain an e-khata and for developers to hand over properties to buyers. By contrast, the Bangalore Development Authority (BDA) and the Bangalore Metropolitan Region Development Authority (BMRDA) are said to be processing applications without major hold-ups. Developers report that approvals previously handled centrally are now split among five corporations, each following differing procedures, creating confusion and inconsistency in processing. Builders have attributed the bottleneck in part to the ongoing Special Intensive Revision (SIR) of electoral rolls and to administrative changes following the formation of the GBA, which assumed planning powers earlier held by the BDA. GBA officials have suggested that delays could be limited to cases where applicants failed to submit required no-objection certificates or where applications contained deficiencies. Developers reject that account, saying the problem is widespread and that no meeting on approving change of land use applications has been convened for the past two months. The Confederation of Real Estate Developers' Associations of India (CREDAI) has been approached by industry representatives seeking clarity and resolution, and developers say repeated follow ups by homebuyers add to the pressure. Industry sources contend that while some authorities continue to function efficiently, the current split of responsibilities among municipal bodies has led to procedural unevenness and a practical freeze in several cases. Stakeholders are urging a coordinated remedy to restore predictability so projects can proceed and certificates be issued.

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