Getting Occupancy Certificate is builders duty - Consumer Court

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Before taking possession of the flats purchased by any individual, obtaining Occupation Certificate (OC) is a “must have document”. If you are denied of the same, then the consumer court can come to your rescue.

The Bandra Consumer Disputes Redressal Forum noting that the Occupancy Certificate is an essential requirement for a flat-buyer, has ordered Dharia Developers to give the purchaser, the  Occupancy Certificate  within a specified time.

As per an agreement dated September 26, 2006, Mr. Mehul Thakkar bought two flats on the sixth floor (601 and 602) of an apartment building by paying Rs 40.25 lakh for each of the flats, the remaining one lakh per flat was agreed to be paid at the time of delivery of possession. It appears that M/s. Dharia Developers had promised to give the possession of the flats within 12 months from the date of agreement. However, Thakkar is yet to obtain the Occupancy Certificate or the Completion Certificate for these flats. Hence, Thakkar sent a notice to the builder demanding the same. When the builder didn't respond, Thakkar filed a complaint before the Forum and also an application seeking interim relief.

In their defence, Dharia Developers argued that Thakkar wanted to merge both the flats into a single unit, as per his letter in September 2006. The builder claimed that though this was against the building's approved plan, they permitted Thakkar to do so at his own expense after getting an approval from the sanctioning authorities. The builder stated that since Thakkar couldn't complete the work in time, the Occupancy Certificate couldn't be obtained from the authorities. Hence, they are not responsible for the delay in handing over the possession and the Occupancy Certificate to Thakkar.

In their interim order, which is common for both of Thakkar's flats, the Bandra Consumer Disputes Redressal Forum has held the builder as having committed deficiency of service. The forum observed, “These explanations are hardly satisfactory, because it was an obligation incurred by Thakkar. If Thakkar had not carried out the modifications that he had suggested, the builder could have completed the construction disregarding Thakkar's suggestions.” The forum noted that though Thakkar had given the letter informing of the modifications to the builder in September 2006, the flat's construction is incomplete even after three years. “The builder should have completed the constructions, internal as well as external, as per the original plan, since the modifications were at Thakkar's instance. The builder was not required to wait till the modifications were completed. This shows that the builder has put forward a lame excuse for not completing the construction and for not obtaining the Occupancy Certificate. The builder received almost the entire consideration of the flat, more than Rs 40 lakh in 2006. He has retained the amount and utilized the same, but has not collected the Occupancy Certificate”. The Forum also held, “Obtaining OC is an essential requirement under the MOFA (Maharashtra Ownership Flat Act) and the flat purchased cannot be legally occupied, unless the Occupancy Certificate is obtained by the builder. The builder has not produced a single piece of paper to show that he has taken effective steps with the competent authority for obtaining Occupancy Certificate.”