building construction at panchayat

yes ,it is mandatory to leave the fire gap between the buildings.

Yes, it is necessary to leave some gap between the buildings. This gap is basically known as "Setback."  A Setback is said to be the "minimum open space" required around any building or structure.

There are Municipal Regulations that provides a specific distance which should be maintained between a building and the boundary of the plot on which the building is being constructed on. The Setbacks are required at the front, rear and sides of buildings and the specifications vary from one area to another.

There are certain important reasons for which the setbacks are needed to be ensured:

1. Firstly, to protect water bodies located close to a building from being adversely affected by the construction and human inhabitation.
2. Secondly, to protect one building from the shadow of the other so that it doesn't obstruct the adequate amount of ventilation and sunlight required by the building.
3. Thirdly, to protect buildings from noise - causing elements, such as nearby industries, airports or highways.
4. Lastly the most important factor is that, if the buildings are really close by and there is not much distance it becomes harder for emergency services such as fire engines to move around during a mishap.

So, you should probably check with the municipal regulations and see what distance you are required to maintain between the buildings while construction, so that it will not cause any problem in the future for you as well as for others.