In August 2022, India watched two 100-metre towers in Noida collapse into dust in a controlled implosion. The Supertech Twin Towers, 40 storeys each, were demolished on the Supreme Court’s orders. Not because they were structurally unsound. Because the building plan approval was obtained by violating mandatory distance requirements. The gap between towers should have been 36.5 metres. It was 9.
The court found that the development authority, NOIDA, “chose to lend its support to the appellant in clear defiance of the provisions of law.” Buyers who had paid full price for their flats got refunds with 12% simple annual interest. But the flats themselves were reduced to rubble.
Two years earlier, in January 2020, four apartment complexes in Maradu, Kerala (343 flats across five complexes named in the Supreme Court order) were demolished by implosion. The local panchayat had issued building permits without the mandatory Coastal Zone Management Authority approval. The Supreme Court held that “construction raised in violation of such regulations cannot be lightly condoned” and ordered demolition. Flat owners received Rs 25 lakh interim compensation each, recoverable from the builders.
These are not hypothetical risks. These are buildings that existed, were lived in, and were turned to dust because one approval was missing or fraudulently obtained.
Two Different Approvals, Two Different Purposes
Most people use “building approval” as a catch-all term. In practice, there are two distinct approvals, and confusing them can be expensive.
Layout approval is about land. When a landowner wants to subdivide a piece of land into plots for sale, they need approval from the development authority. This ensures the subdivision has proper roads, drainage, open spaces, and common areas. Without layout approval, each individual plot in that subdivision is technically in an unapproved layout, and any building constructed on it inherits that illegality.
Layout approval is granted by development authorities: HMDA in Hyderabad, BDA in Bangalore, CMDA or DTCP in Chennai, DDA in Delhi, CIDCO in Navi Mumbai.
Building plan approval (also called building plan sanction) is about the structure. Before constructing any building, the owner must submit detailed architectural and structural plans to the municipal corporation or planning authority. The authority checks whether the proposed building complies with zoning regulations, floor space index (FSI) or floor area ratio (FAR) limits, setback requirements, height restrictions, and structural safety norms. Only after approval can construction legally begin.
Building plan approval is granted by municipal corporations: GHMC in Hyderabad, BBMP in Bangalore, MCD in Delhi, MCGM in Mumbai.
Think of it this way: layout approval says the land can be used for buildings. Building plan approval says this specific building is allowed on this specific plot.
What the Law Requires
Every Indian state has municipal legislation requiring building plan sanction before construction. The specific acts vary, but the principle is universal.
In Hyderabad, the Greater Hyderabad Municipal Corporation Act, 1955 governs this. In Maharashtra, the Maharashtra Municipal Corporation Act. In Karnataka, the Karnataka Municipal Corporations Act, 1976, read with BDA Act Section 32. In Delhi, the DDA Act and MCD Act together regulate construction permissions.
The Supreme Court has been consistent about what happens without these approvals. In Dipak Kumar Mukherjee v. Kolkata Municipal Corporation (2012), the court stated: “Making of unauthorised constructions never pays and is against the interest of the society at large. No compromise should be made with the town planning scheme and no relief should be given to the violator.”
And in the long-running M.C. Mehta v. Union of India case, the court directed: “All illegal constructions should be demolished, not cosmetically but in toto. The cost of demolition should be recovered from the illegal builders.”
What RERA Adds
The Real Estate (Regulation and Development) Act, 2016 has made verification easier for new construction. Under RERA:
- Section 2(zq) defines “sanctioned plan” broadly to include site plan, building plan, service plan, parking plan, landscape plan, layout plan, zoning plan, structural designs, and all permissions including environmental clearance.
- Section 4(2)(c) and (d) requires builders to upload all sanctioned plans, layout approvals, environmental clearances, and commencement certificates on the state RERA portal at the time of registration.
- Section 11(3)(a) requires developers to provide allottees with sanctioned plans, layout plans, and specifications at booking and allotment.
For any RERA-registered project (mandatory for projects above 500 sq metres or 8 units), you can check the state RERA portal to see whether the builder has uploaded the required approvals. If they have not, that itself is a red flag.
For pre-RERA buildings and independent houses, there is no centralised portal. You need to verify directly with the municipal corporation.
What Happens Without Approval
The consequences escalate quickly.
No occupancy certificate. If the building was constructed contrary to the approved plan, or without a plan at all, the OC will not be issued. Without an OC, the building is legally unfit for occupation.
No bank loans. Most mainstream banks will refuse home loans for properties without proper approvals. Some lenders may approve on worse terms (higher interest, shorter tenure), but the underlying risk remains entirely with the buyer.
No utility connections. Municipal bodies can refuse electricity, water, and gas connections for non-compliant buildings. In practice, many unauthorised buildings do get connections (often through irregular means), but these can be disconnected if the authorities act.
Demolition. This is the ultimate consequence. The Bombay High Court in Om Sai Apartments (2024) stated it plainly: “Illegality is incurable. This proposition has been firmly settled a long time ago in 1974 by the Supreme Court.” A building demolished four times by NMMC kept being rebuilt by the builder. The court upheld the final demolition and rejected every argument for regularisation, including from flat buyers who claimed ignorance and pointed to their bank loans.
No protection for innocent buyers. This is the part that catches people off guard. The Supreme Court in Faqir Chand Gulati v. Uppal Agencies (2008) held that “the obligation on the part of the builder to secure a sanctioned plan and construct a building, carries with it an implied obligation to comply with the requirements of municipal and building laws.” If the builder does not comply, buyers can claim compensation from the builder, but they cannot claim the building should be spared.
Common Fraud Patterns
Fake approval numbers. Fraudsters use genuine-looking documents but change names, dates, survey numbers, or plot details. These are difficult to spot without cross-checking with the actual approval authority’s records.
Expired approvals. Building plan sanctions are typically valid for 3 to 5 years. If construction began or was completed after the approval expired, the construction is unauthorised even though a genuine approval once existed.
Deviations from the approved plan. This is the most common pattern. The builder gets a legitimate sanction, then builds extra floors, reduces setbacks, adds commercial space, or increases the number of units beyond what was approved. The Supertech case was exactly this: NOIDA issued sanctions, but the actual construction violated the distance requirements the sanction was based on.
Layout approval from the wrong authority. A local gram panchayat approving layouts when only the development authority (HMDA, BDA) has jurisdiction. Courts have held that local bodies cannot approve layout plans within the development authority’s area.
Selling before RERA registration. Builders advertise and collect bookings for projects that are not RERA-registered, claiming “registration in process.” Under Section 3 of RERA, no builder can sell, advertise, or even market a project without registration.
The HYDRAA Factor: Hyderabad’s Demolition Drive
If you own property in or around Hyderabad, there is a more recent and very active enforcement mechanism to be aware of.
The Hyderabad Disaster Response and Asset Protection Agency (HYDRAA), constituted in July 2024, has been conducting demolitions of structures built on lake FTL (Full Tank Level) land, buffer zones, and government land within the Telangana Core Urban Region.
The scale has been significant: hundreds of illegal structures demolished and hundreds of acres of government land reclaimed since its formation. Demolitions have happened across the city, from Manikonda (13 homes along Neknampur Lake) to Madhapur (a 5-storey building) to Shamshabad.
The legal basis includes buffer zone rules under GO 168 of 2012: 30 metres from the FTL of lakes over 10 hectares, 9 metres from smaller lakes. HYDRAA draws powers from the GHMC Act, Telangana Irrigation Act, WALTA Act, and Telangana Land Encroachment Act.
What makes this particularly relevant for buyers: a property can have a registered sale deed, a complete chain of title documents, and even a building plan, but if the land itself falls within an FTL or buffer zone, the structure can still be demolished. As we covered in the Khanamet encroachment case, the document trail may look clean while the underlying land classification makes the property illegal.
The Telangana High Court has upheld HYDRAA’s constitutionality but has pushed back on the speed of demolitions, directing that adequate notice periods be provided and Supreme Court guidelines for demolitions be followed.
How to Verify Approvals
Before Buying
Check the RERA portal. For any new project, search your state’s RERA portal. All sanctioned plans, layout approvals, and commencement certificates should be uploaded. If they are not there, do not proceed.
Verify with the approval authority. Each city has an online portal or physical office where approvals can be verified:
| City | Layout Approval | Building Plan | Online Portal |
|---|---|---|---|
| Hyderabad | HMDA | GHMC / TG-bPASS | TG-bPASS portal |
| Bangalore | BDA | BBMP / BDA | bdabangalore.org |
| Chennai | CMDA / DTCP | CMDA / Local body | DTCP Tamil Nadu portal |
| Delhi | DDA | MCD | OBPAS |
| Mumbai | MCGM / CIDCO | MCGM | AutoDCR system |
Check the approval date. Building plan sanctions expire. Confirm that the approval was valid when construction started, not just that it was issued at some point.
Compare the approved plan with the actual construction. This requires a physical visit or a trusted person on the ground. Check the number of floors, the setbacks from property boundaries, and whether any additional construction (like a rooftop enclosure) exists beyond the approved plan.
For land and plots, verify the land classification. Especially in Hyderabad and other lake-adjacent cities, check whether the land falls within an FTL zone, buffer zone, or government-assigned land. An FMB sketch and revenue records can help establish the land’s classification.
For Existing Property Owners
If you already own a property and are unsure about approvals:
- Check if you have the original sanctioned building plan among your property documents
- If not, apply for a copy from the municipal corporation
- Compare the approved plan with the actual construction
- If there are deviations, consult a property lawyer about regularisation options (where available)
- For flats, check the builder’s RERA registration (if the project was post-2016) and the OC status
For NRIs managing property from abroad, Assetly can help you store and organise all approval documents alongside your title deeds and encumbrance certificates, so you have the complete picture accessible from anywhere.
The Pattern
The cases that end in demolition share a common thread: someone, at some point, decided that approvals were optional, or that a fraudulent approval was good enough, or that the authorities would never actually enforce. The Supertech promoter assumed NOIDA would cover for the violations. The Maradu builders assumed a panchayat permit was sufficient. The Om Sai builder assumed that rebuilding after demolition was a viable strategy.
In every case, the Supreme Court’s position was the same. The illegality is incurable. The construction must go. And the people who suffer the most are not the builders (who often have other assets), but the buyers who trusted the wrong piece of paper.
The building plan and layout approval are not bureaucratic formalities. They are the documents that determine whether your property has the legal right to exist.
Related Reading
- What Is an Occupancy Certificate? - The document that confirms your building is legally habitable
- The Khanamet Encroachment Case - What happens when buildings are constructed on government land
- Documents You Need Before Selling Property - The full seller’s document audit checklist
- Link Documents: The Chain of Title - Why a complete chain matters even when approvals exist
- India’s Property Dispute Crisis - The systemic backdrop behind unauthorised construction
Assetly is a property document management platform for Indian property owners and NRIs. Store and organise your property documents, including building approvals, layout plans, and OCs, with access from anywhere. Learn more at assetlyhq.com.