New NOC Rules Bring Chennai’s Real Estate Into The Fast Lane

One of the major lacunae in the housing sector is the long and tedious project approval process wherein there are several departments that one has to visit to get the requisite approvals. Thus, in a bid to fast-track clearance procedures for buildings, the Chennai Metropolitan Development Authority (CMDA) has set deadlines for 11 departments to issue the no-objection certificates (NOCs). Out of the 11, nine departments will have to give NOC within 30 days, while the remaining three will have 15 days to issue the NOC. Failing to issue an NOC within the stipulated deadline, would mean that the NOC is deemed as granted.

Experts in the field think that this move will be good for the private sector.

There are also hopes that the quick approval process will bring investments to Tamil Nadu from other states.

“Since transparent and efficient regulations are indispensable for fostering a stable real estate market This directive will set clear deadlines, make sure accountability and efficiency, bring in more investment, and better meet the growing need for housing,” says Anshuman Magazine, chairman and CEO of CBRE in India, South-East Asia, the Middle East, and Africa.

This move could start a chain reaction that will help people buy homes in the long run. Taking too long to get multiple approvals slows down the start of the project, which raises the overall cost for the building. This extra cost is finally passed on to the owners, who now have to pay more for a home. “A shorter turn-around time can save money for both the builder and the buyer,” says Sanjay Chugh, city head of Anarock Group in Chennai.

A major initiative was the launch of the Online Plan Permission Portal in May 2022. This digital platform has simplified the approval process, allowing the CMDA to issue around 70 plan approvals per month. Despite the success of the portal, delays in obtaining No Objection Certificates (NOCs) from various departments, such as the Chennai Metro Rail Limited (CMRL), Water Resources Department (WRD), and Fire Services, continued to be a major obstacle, often extending the approval timeline for months.

In response to these persistent delays, the CMDA has implemented a new policy to expedite NOC approvals. The revised framework sets deadlines of 15 to 30 days for relevant departments to issue NOCs. This move aims to reduce the approval time for development projects and construction, accelerating progress in the real estate sector.

Under the new policy, departments like the State Highways and Fire and Rescue Services must issue NOCs within 15 days, while other departments, such as the TNHB, CMRL, WRD, and Fire Services, are required to do so within 30 days. If any department fails to meet the deadline, the NOC will be automatically considered granted. This policy places accountability on departments, ensuring transparency and efficiency in the approval process.

Additionally, all 24 state and union departments issuing NOCs have been integrated into a single-window system. This streamlined approach is expected to boost the real estate industry by reducing delays and improving transparency, which will, in turn, make Chennai a more attractive destination for real estate investment.

Usually, you need permission from a lot of different departments.

These include the departments of water resources, geology and mining.

CMRL (if the project is near a metro line), the Tamil Nadu Housing Board, the fire department, the Airports Authority of India (for buildings taller than 30.5 meters or 10 floors), and more.

There are also hopes that the quick approval process will bring investments to Tamil Nadu from other states.

“Since transparent and efficient regulations are indispensable for fostering a stable real estate market. This directive will set clear deadlines, make sure accountability and efficiency, bring in more investment, and better meet the growing need for housing,” says Anshuman Magazine, chairman and CEO of CBRE in India, South-East Asia, the Middle East, and Africa.

This move could start a chain reaction that will help people buy homes in the long run. Taking too long to get multiple approvals slows down the start of the project, which raises the overall cost for the building. This extra cost is finally passed on to the owners, who now have to pay more for a home. “A shorter turn-around time can save money for both the builder and the buyer,” says Sanjay Chugh, city head of Anarock Group in Chennai.

Usually, you need permission from a lot of different departments.

These include the departments of water resources, geology and mining.

CMRL (if the project is near a metro line), the Tamil Nadu Housing Board, the fire department, the Airports Authority of India (for buildings taller than 30.5 meters or 10 floors), and more.

Industry experts expect that this move will have a positive impact on the residential sector. The speedy approval process is also expected to attract investments from other states to Tamil Nadu as “Transparent and efficient regulations are indispensable for fostering a stable real estate market. This directive will set clear timelines, ensure accountability and efficiency, attract increased investment, and better address the growing housing needs,” opines Anshuman Magazine, chairman and CEO – India, South-East Asia, Middle East and Africa, CBRE.