Wednesday, 26 November 2014

Occupancy Certificate

 Occupancy Certificate
Occupancy Certificate is a very important document. It evidences the completion of the building as per the approved plan and compliance of local laws. Local bodies like; City Corporations/City Municipalities issue Occupancy Certificates. Without Occupancy Certificate, it is difficult to get the water and sanitary connections. Financial Institutions also insist on Occupancy Certificate.
Problems with respect to issuance of Occupancy Certificate arise on account of violation of building Law, which are increasing day by day. Though the people have spent their hard earned money on the project with a dream of owning a house, they could not occupy the house for want of Occupancy Certificate. They have to suffer for none of their faults.
Having invested their precious money in such buildings and after waiting for many years to get Occupancy Certificate, the Purchasers are forced to occupy the flats even without power, water and sewage connections instead of losing the property.
In one of the cases, a Builder was unable to obtain the Occupancy Certificate. After a prolonged wait, he requested his Purchasers and handed over the apartments without power, water and sewage connections. He put the entire blame on the Revenue Authorities and disappeared. The Occupants had to find their own ways.
Obtaining the approval of the plans has become just a formality and a casual affair. Nobody will abide by that. It is just a document to be produced during inspection. During the boom time, a Builder constructed several houses and flats violating building rules and regulations. He deviated from the approved building plans and went on to construct apartments where he should not have constructed.
The Civic Authorities refused to give Occupancy Certificate despite the best efforts of the Builder.
In the mean time, the apartment Purchasers on the assumption that things were happening to their satisfaction, performed house warming ceremonies and took possession of the flats. When they were about to move in, the Builder revealed the shocking news that even though he had constructed the apartments and houses to their liking, the Authorities were not issuing Occupancy Certificate on one pretext or the other.
Another Builder constructed small flats targeting the Middle Income Group (MIG). The Authorities, however, refused to issue Occupancy Certificate because of deviation from the approved plan. In this case, the Builder got the plan approved for construction of 4 dwelling units, 2 on the ground floor and 2 on the first floor. However, he did something different in gross violation of the approved plan. Instead of constructing 4 dwelling units, he constructed 6 dwelling units. The persons, who invested in Flats, are now desperate, as they would lose their money and the flats, if the Authorities decide to demolish the structure.
It is not only the flat Owners are suffering. A few Builders, who have a heart for the investing Public, too face problems.
One such Builder constructed 8 flats in accordance with the building regulations and Bylaws and approved building plan. He has completed 5 flat and 3 remains to be completed. The Builder received full payment from five Purchasers while the other three backed out. This has put the Builder in a difficult situation. For want of funds, three flats remained incomplete and Occupancy Certificate could not be obtained as the Authorities will issue Occupancy Certificate only after completion of the entire construction. The Financial Institutions refused tolend in the absence of Occupancy Certificate or No Objection Certificate from the Authorities. The net result was that not only the Builder was losing money but also the Purchasers of the flats, who have to pay interest to the Financial Institutions. The Financiers too face difficulties in getting repayment of loan installments.
The Authorities in the scheme of things must be blamed for this state of affairs. The inspecting Authorities do not carry out periodic and surprise visits at the construction site. In case of deviation, they should take the Builder to task in the beginning itself and not at the flag end of the construction. Majority of the Builders follow rules and regulations but a few do not. They disobey rules and regulations and violate them.
This is a vicious circle, which only the Government can break. Government must initiate immediate remedial action to stem the rot. The Authorities should not be very rigid in granting completion of Certificates. If the Builder has deviated a little more than the allowed percentage, the Authorities may impose a penalty and regularise the building.
The Investors too are responsible for this fiasco. They do not check the antecedents of the Builder and his track record. Before taking possession, they do not check whether the building is according to the agreement. Many do not demand the Occupancy Certificate, Parent Documents, Title Deeds, Deposit receipts from the Builder.
The Purchaser, who has not collected the required documents, will have to face various types of problems at a later stage.

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