In India, particularly in states like Uttar Pradesh and Haryana, a compounding fee in the context of an Occupancy Certificate (OC) is a monetary penalty charged to regularise (i.e., legalise) construction works or deviations that were made in violation of building byelaws before issuing the OC.
When a building is constructed with unauthorised deviations such as excess coverage, encroachments into setbacks, additional floors, or altered projections, the local authority may allow these violations to be “compounded” provided they fall within certain limits.
In that case, the owner pays a compounding fee, submits revised “as-built” drawings showing the deviations, and promises removal of non-compoundable parts if needed.
The OC is granted only after the compounding fee is paid and the deviations are approved.
The fee is calculated based on the nature of the violation, plot size, use (residential/commercial), and floor involved. I hope you understand the compounding fee.
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What is Compounding Fee in Occupancy Certificate?
pragati
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2025-10-05T15:45:17+00:00 2025-11-22T23:41:46+00:00Comment
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