The empty space from the building till the boundary of the plot at all sides is called the Setback area.
The specifications vary for every area and are decided by the Municipal Authority.
The reason behind leaving setback area is to make ease for moving vehicles, ventilation and during emergency purposes. Generally, a clear 6mx6m setback area is required for fire engine movement. The setback area increases for High rise buildings.
If the builder falls short on providing for the specified setback area, it is called as an open space deficiency.