Occupancy Certificate

The objective of RERA is to protect customers, especially through the period of the construction of the project. Once a project has the Occupancy certificate the risk to the consumer reduces drastically. Therefore projects that are at the end stage and are able to obtain the Occupancy certificate

SECTION 2(q) OF THE RERA ACT, 2016:

It defines the Completion Certificate to be a certificate issued by the competent authority certifying that the real estate project has been developed according to the sanctioned plan, layout plan, and specifications, as approved by the competent authority under local laws.

SECTION 2(z)(f) OF RERA ACT, 2016:

Occupancy certificate, issued by the competent authority permitting occupation of any building, as provided under local laws, which has provision for civic infrastructure such as water, sanitation, and electricity. 

Therefore, in essence, an OC is a document that serves as the ‘final pass certificate’ for a building.

DIFFERENCE BETWEEN OC AND CC:

The main difference between the Completion certificate and occupancy Certificate is that CC shows that the building construction is done as per the plan which was approved by the concerned authorities. After getting this, an occupancy certificate will be given to all buyers so that they can take possession of their Flats/properties.

WHAT SHOULD BUYERS DO IF THE DEVELOPER DOESN’T GIVE OC?

It is against the law of the land to reside in buildings without OC. Therefore, the act of residing on premises without OC is an offense. Developers are obligated to obtain OC under Section 11(4)(b) of the RERA Act, 2016 wherein the section states that the promoter shall be responsible for obtaining the completion certificate or the occupancy certificate, or both, as applicable, from the relevant competent authority. Further, if the developer gives possession to the buyer without OC is in breach because no possession can be given without OC and the buyer can file a case/complaint against the developer under RERA.

FURTHER, UNDER SECTION 20(10) OF THE RERA ACT, 2016 STATES THAT:

Every allottee shall take physical possession of the apartment, plot, or building as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot, or building, as the case may be.

CASE LAW:

Sultana Dalal v/s. Asia Group:

Facts: Sultana Dalal, a complainant had approached MahaRERA, stating that, Miracle Mall, situated at Bhiwandi, was already occupied but the developers (Asia Group Akbar shaikh, AbdullhaMulla, and ManharBagadia) had failed to get the occupation certificate till date. Thus, the complainant sought directions from the authority that the developers are asked to register the project.

Judgment: In the instant case, the MahaRERA held that mere non-procurement of an OC will not trigger a registration requirement under the Act and dismissed the complaint with the following observations:

• There was no ongoing construction activity in the project, where the Complainant resides.
• The building where the Complainant resides had been occupied prior to the commencement of the Act and hence no registration under the Act is required.

CONCLUSION:

As per state laws, one cannot legally move into a building unless the developer gets an occupancy certificate from the respective local administrative or civic bodies. The corporation or municipality can ask the apartment owners to leave such illegally occupied flats or impose heavy penalties in the name of ‘regularization’.