Updated 26 October 2026. This guide sets out the old and new limits, what changed since the August announcement, and what a buyer of a flat in a small building should check now that more of them will carry a local body permit rather than a CMDA or DTCP one.

What does G.O. 180 change?

The order widens the powers delegated to urban and rural local bodies for building plan approval. It followed a recommendation from the Commissioner of Town and Country Planning, and the stated aim is to simplify approvals, reduce administrative delays and decentralise decisions (Constrofacilitator, 24 October 2026). Buildings above the new limits still go to the higher planning authority, which in the Chennai Metropolitan Area is CMDA and elsewhere is DTCP.

  • Corporations and municipalities, residential: up to 1,500 sq m FSI area (about 16,140 sq ft), maximum 16 dwelling units; earlier 10,000 sq ft (Verified.RealEstate; Constrofacilitator).
  • Town panchayats and rural local bodies, residential: up to 1,200 sq m FSI area (about 12,912 sq ft), maximum 12 dwelling units; earlier eight dwelling units (Constrofacilitator).
  • All local bodies, commercial: up to 500 sq m FSI area (about 5,380 sq ft); earlier 2,000 sq ft, and 3,280 sq ft in Greater Chennai Corporation (Constrofacilitator).
  • Height for all of the above: up to 14 metres, within stilt-plus-three or ground-plus-two floors as applicable; the earlier residential height limit was 12 metres (Constrofacilitator).

Is it 16 or 12 units for corporations?

Two reports we read, Verified.RealEstate and Constrofacilitator, both give 16 dwelling units for corporations and municipalities and 12 for panchayats. One other secondary summary we saw listed 12 units for corporations too. We could not read the G.O. text itself, so treat 16 as the reported figure and confirm against the order before relying on it for a specific plot.

1,500 sq m converts to 16,146 sq ft and 1,200 sq m to 12,917 sq ft (our arithmetic); the reports round these to 16,140 and 12,912 sq ft.

What is 'FSI area' and why does it matter?

The limits are measured as FSI area, not built-up area. FSI area is the plot area multiplied by the permissible FSI, which sets the total floor area that can be built on the plot (Constrofacilitator, 24 October 2026). The switch from built-up area to FSI area for residential approvals came earlier, after representations from the Builders Association of India and CREDAI (Constrofacilitator).

For a buyer, this means the question is not only 'how big is the building' but 'what FSI area did the permit approve'. A building that has been extended beyond the approved floor area can fall outside the local body's power altogether.

How G.O. 180 fits with the August package

The new local body limits were first announced as part of a package reported on 30 August 2026, which also raised residential self-certification from 3,500 sq ft to 5,000 sq ft for ground-plus-two and stilt-plus-three buildings and introduced third-party certification for homes up to 8,070 sq ft, commercial buildings up to 3,230 sq ft and industrial buildings up to 26,900 sq ft in SIDCO, SIPCOT, ELCOT and approved industrial layouts (DT Next, 30 August 2026). G.O. 180 is the order that puts the local body part into effect.

Industry reaction was mixed. CREDAI Chennai president Mehul Doshi said the industry had asked for a 10,000 sq ft self-certification limit (DT Next, 30 August 2026). S Ramaprabhu of the Builders Association of India, Southern Centre, welcomed G.O. 180 and said the revised limits could help address violations arising from the misuse of buildings (Constrofacilitator, 24 October 2026).

The state has also funded SPEED, an AI-enabled single platform meant to bring CMDA, DTCP and local body approvals together, with ₹40 crore in the 2026 budget (DT Next, 6 August 2026). No rollout date had been reported as of 12 October 2026 (Verified.RealEstate tracker).

What it means if you are buying a flat in a small building

More stilt-plus-three buildings of 9 to 16 flats will now carry a corporation or municipality permit. That is lawful and not a weakness in itself, but it changes which records you check:

  • Ask for the planning permit and building permit and note which body issued them, the permit number and the approved FSI area, number of units and floors.
  • Match the approval to what is built: count the floors and units on site. A fourth floor or extra units above the permit are a deviation, not a detail.
  • RERA: the RERA Act exempts a project from registration only where the land does not exceed 500 sq m or the apartments do not exceed eight, inclusive of all phases (Real Estate (Regulation and Development) Act, 2016, Section 3(2)(a)). A 9-to-16-flat building on a plot larger than 500 sq m generally needs TNRERA registration; check the TNRERA number and QR code.
  • Completion: ask how the completion certificate will be issued and by whom before you pay the final instalment (see Completion Certificate Chennai: Is It Safe to Buy Without OC/CC?).
  • Title and UDS: the permit does not prove title. Check patta, EC and your undivided share of land as usual (see Patta for Flats in Chennai and UDS Explained (2026): Joint Patta, Undivided Share, Registration).

Does G.O. 180 apply inside Chennai city?

The 2020 delegation, made by the previous government, excluded Chennai (Constrofacilitator, 24 October 2026). The October report lists Greater Chennai Corporation's earlier commercial limit of 3,280 sq ft alongside the new 500 sq m limit, which indicates that corporations including Chennai are covered; confirm with the G.O. or with your zonal office for a specific plot.

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