Building Use (BU) Permission – Details and Implications – Explained simply
1 Apr 2026
Real Estate business and transactions tend to have several jargons, which might sound intimidating, unless one knows the meaning and/or usage. We at, Vital Space, continuously endeavor to make your real estate transactional experience simple and transparent. We hence publish articles and blogs that deal with real estate sector norms, rules and jargons from a simple perspective so that every one can understand the basics and participate in an informed manner in any real estate transaction.
In this article we will look at the importance and implications of a Building Use Permission Letter, commonly know as BU Permission.
Purpose of BU Permission
Every registered project shall need a BU permission before it is used for its said end purpose. The reasons for having such a permission needed are as follows:
- Legal Occupancy: It gives the owner of the property the legal right to occupy and use the building for its stated end use.
- Compliance Check: It is a compliance check and confirmation that the actual building constructed matches the original approved building plan that was approved / passed.
- Public Safety: It checks & ensures the necessary public safety measures & norms are followed and adhered to. These include fire safety, environmental clearance and structural integrity, amongst others.
- Utility Connections: This permission is needed and a prerequisite to obtain permanent utility connections like water, gas, electricity and drainage.
- Property Sale or Transfer: It is required for property sale deed registration.
- GST Benefit: A building with BU permission does not attract GST on sale transaction, thus making it more affordable for buyers.
Documents Required for BU Permission
The builder needs to provide the following documents to obtain a BU Permission from relevant authorities:
- Approved Building Plans
- Completion Certificate from Architect and/or Engineer
- Structural Stability Certificate
- Actual Photographs of completed Building
- NOC from Fire Department
- NOC from Pollution Control Board
- NOC from Airport Authority, if the building falls within a restricted zone
- Proof of Land Ownership
- Receipts of all Tax Paid
- Water and Drainage Connection Details
- Lift Installation and Safety Certificate
Time frame when BU Permission is Required
The BU Permission is only needed after the complete construction of the building, but prior to use and occupancy of the said building. It is applicable for all types of buildings / projects – residential, commercial, industrial and institutional. (BU permission criteria wary according to build types like Hospital, residential, commercial)
Consequences of not having BU Permission
The BU Permission is a critical document and is mandatory to have before any and all activity can be initiated at a building or its premises. In case any such building initiates occupancy or usage without a proper BU in place, then any or multiple of the following actions can be taken against such building / builder:
- Illegal Occupancy: the building can be deemed to me illegally occupied and result in eviction notice being served to the owner / occupants.
- No Utility Services: the basic utility services – water, electricity, drainage – may be refused or discontinued.
- Penalties: the building may attract legal fine and/or action from local authority or municipal body.
- No Sale Registration: any property is such a building cannot be sold or a sale deed be registered on that property.
- Insurance Issues: insurance claims, like property and/or fire, may be rejected as the insurance policy will be deemed null and void.
Regional Variance & Issuing Authority
The BU Permission is given by the local body responsible for property registrations. For buildings within the Ahmedabad municipal area the governing body is Ahmedabad Munucipal Corporation (AMC & AUDA). Also, it is to be noted that the term Building Use is also a state specific term and can change from market to market. In several other states this same document is known as the Occupancy Certificate (OC).
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