• Consequences of buying flat in building having no OC (in Mumbai)

Dear Madam/Sir,
Kindly suggest me that what may be the probable consequences of buying a flat in building having no OC, in Mumbai Urban Area?
The building is now 10 yrs old.
As per my knowledge, the building does not have OC due to some illegal construction (2/3 illegal offices built) at the ground floor.
Can I purchase a flat on the 3rd floor without hesitation?
What are the end consequences if the building does not get OC?
Banks are hesitating to provide loan as of now, but earlier it has provided loans to many in the building.
Kindly suggest.
Asked 7 years ago in Property Law
Religion: Hindu

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4 Answers

It is against the law to move into flats in buildings without the mandatory municipal occupation certificate (OC), the Bombay high court has ruled.

2) Once the building is complete, the builder has to obtain an Occupation Certificate, which certifies that the building has complied with the approved plans.

3) Only once the OC is issued can flat owners occupy the apartments as per law, as otherwise the building is considered illegal.

4) BMC charges double the water tax and other taxes. Corporation can also initiate action against the flat owners, as the law says no person can move into a building without OC.

5) dont purchase the flat . banks will not sanction loan and you will find it difficult to find buyers for your flat

Ajay Sethi
Advocate, Mumbai
96808 Answers
7811 Consultations

Though for most of the illegal constructions the regularisation later comes at a cost of penalty it is not advisable to invest large sum of money without knowing the status of illegal constructions.

If the illegality is musch and the building is razed then you will be no where.

better search for a clean proeprty.

Devajyoti Barman
Advocate, Kolkata
23198 Answers
511 Consultations

1. Since no OC has been issued by the authority for last 10 years, it is established that the building has not been constructed as per the sanctioned plan.

2. The said building is therefore an illegally constructed building liable to be demolished by the authority with or without any court order.

3.The said building is illegally constructed building which is liable to be demolished as per law but no body can say what the authority will finally do since they have allowed to stand without getting the OC for more than 10 years.

4. In our Country, normally politicians and/or Municipal Corporation hesitate to act against a group of people fearing back lash in vote box.

5. It is your call to decide on the matter which will depend on your risk bearing capacity both mentally and financially.

Krishna Kishore Ganguly
Advocate, Kolkata
27453 Answers
726 Consultations

Obtaining Occupancy Certificate and Completion certificate can be mandatory under respective State laws. As per these 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’.

The OC is issued only once the building has been completed in all respects and can be occupied.

The legal possession of the Flat by the Owner is valid only with the Occupancy Certificate.

To claim Income Tax benefits on your home loan, your employer may ask you to submit Occupancy Certificate along with the home loan statement.

Occupying a property without an OC is considered as illegal and local civic bodies can ask you to vacate the property.

You may have to face trouble in getting water connection or sanitary connection or electricity supply connection.

Most of the financial institutions may insist on Possession Certificate to sanction home loans.

You may find it very difficult to find a buyer in case if you wish to sell your Flat in the future.

T Kalaiselvan
Advocate, Vellore
87007 Answers
2335 Consultations

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