Haryana liberalises FAR, OC norms under major Building Code revamp

Amendments allow unrestricted FAR for malls, offices and hotels, higher purchasable FAR for industries, third-party certification and an online e-register for approvals.

The Haryana government has amended key provisions of the Haryana Building Code (HBC), 2017, significantly liberalising floor area ratio (FAR) norms, simplifying occupation certificate procedures and removing select regulatory requirements, officials said, adding the initiative aims to improve ease of doing business and accelerate real estate and industrial development. 

December notification eases compliance for commercial and industrial projects, expands self-certification, boosts data centres and mandates strict fire and parking norms. (HT Archive)

The amendments, notified by the town and country planning department in the first week of December, are aimed at faster project execution, reduced compliance burden and greater flexibility for developers across commercial, industrial, hospitality and institutional sectors, officials said. 

One of the most significant changes allows unrestricted FAR and height for a wide range of commercial buildings, including shopping malls, multiplexes, departmental stores, integrated commercial complexes, offices, hotels, restaurants, banquet halls and guest houses, subject to compliance with fire safety and parking norms. 

For industrial units, the government has permitted enhanced purchasable FAR beyond existing limits. General industries can now purchase far beyond 150%, apparel and footwear units beyond 250%, and data centres up to 500%, on payment of prescribed charges. Officials said the move is expected to benefit manufacturing clusters and emerging data centre hubs in NCR districts. 

The amendments also extend relief to existing buildings. Projects approved before June 30, 2016, will now be eligible to avail additional FAR for industrial, commercial, resort and institutional uses on payment of proportionate infrastructure development charges and external development charges. Educational and institutional buildings approved before this cut-off date can avail a 50% FAR increase without additional charges if permission was granted after June 30, 2016. 

On an average industrial or commercial plot, the amendments can translate into 30–60% additional built-up area, and in specialised sectors like IT parks or data centres, the upside is even higher, said Viren Mehta, founder and director, ElitePro Infra. “If executed with strict enforcement of fire, structural and parking norms, this can drive vertical growth, reduce urban sprawl and accelerate redevelopment of ageing assets,” he added.

To address project delays, the government has strengthened third-party certification and self-certification mechanisms for the issuance of occupation certificates. High-risk buildings will now receive occupation certificates through empanelled third-party architects and engineers, with defined timelines. Low-risk buildings, including plotted residential properties and select industrial units, will be eligible for occupation certificates through self-certification, subject to minimum construction thresholds. 

The amended Haryana Building Code allows for more flexible FAR (Floor Area Ratio) but mandates that any additional or purchasable FAR can only be used after full compliance with parking, fire safety, structural safety, and ventilation norms. For special buildings like malls, IT parks, and high-rises, mandatory fire safety clearances are required before any approvals or occupation certificates are granted.

Officials state that while FAR liberalization aims to improve ease of doing business and optimize land use, strict parking adequacy and emergency response standards will act as regulatory guardrails to ensure safety and urban functionality are not compromised by higher density.

To enhance transparency, Haryana will launch a public online e-register for all building plan approvals and occupation certificates. This system will be integrated into the existing Online Building Plan Approval System (OBPAS/HOBPAS) portal.

The rollout will be phased, with full public access to searchable records of approvals and certificates expected by early 2026. This move aims to make the entire approval process more accountable and transparent.

In another key change, the requirement of environmental clearance exemption for GRIHA-certified buildings has been removed. Officials said this aligns state regulations with updated national policies and removes ambiguity in the approval process. 

The amendments are expected to spur investment, reduce litigation and encourage redevelopment, particularly in Gurugram, Faridabad, Jhajjar and other NCR districts, where demand for commercial, industrial and mixed-use projects remains strong. “These reforms are designed to balance safety with speed. The intent is to remove unnecessary bottlenecks while ensuring compliance with fire, structural and environmental norms,” a senior town planning official said. 

The revised provisions have come into immediate effect and will be incorporated into the Haryana Building Code, 2017, AK Singh, additional chief secretary to the Government of Haryana, Town and Country Planning Department, stated in the letter. 

In response to the reforms, developers said the liberalised FAR norms and procedural streamlining will improve land-use efficiency, cut approval delays and accelerate commercial and residential project execution without compromising safety. “The amended FAR norms give developers flexibility to optimise land use and build vertically. Effective enforcement of parking and fire safety norms will be key to ensuring faster execution without compromising safety,” said Rajjath Goel, Managing Director, MRG Group.

Robin Mangla, president of M3M India, said the amendment is a timely, buyer-friendly reform that boosts homebuyer confidence. “Liberalised FAR norms and simpler occupation certificate processes will speed up project completion and reduce possession delays, while lower compliance burdens will improve planning efficiency, project quality and pricing competitiveness.”

“Liberalised FAR and the e-register improve transparency, cut approval bottlenecks and align development with real demand. We expect shorter lead-times for commercial and mixed-use projects,” said Uddhav Poddar, CMD, Bhumika Group.

“Amendments to the Building Code reduce procedural friction and send a strong confidence signal to investors. Immediate implementation will accelerate construction, boost housing supply and support economic growth,” said Manish Agarwal, MD, Satya Group and president, Haryana CREDAI.

“The changes will allow higher-density commercial development without expanding land footprints. Faster occupation certificates will reduce costs, improve leasing efficiency and strengthen NCR’s commercial ecosystem,” said Dhruv Sharma, managing director, 32nd Avenue.