• No commencement certificate but financed by BOI

I booked a flat in a township in Avsare village Neral (Maha Rera no. p[deleted]). The project is financed by a loan given by BOI, so the land is mortgaged to BOI. 

I discovered builder has building plan sanction from Zilla Parishad (ZP), but no commencement certificate (cc) from ZP. The commencement certificate that they do have is issued by Gram Panchayat. The builder says that since the land comes under free zone, as opposed to a U2 zone, it only needs an NA order. He says free zone land does not need cc from ZP or Municipality. Is this true? Why would ZP approve the building plan and not issue a cc? And how come BOI financed a project and is providing home loans without a cc from a proper authority like ZP/Municipality? Not only BOI, but even Axis and HDFC have provided APF numbers to the project.

I will be meeting BOI soon, but would appreciate some insight on this.
Asked 4 years ago in Property Law
Religion: Other

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4 Answers

The commencement certificate is granted by the local authorities under which the land falls after inspection without cc it is a illegal development so I'm your case if the land falls.under the gram panchayat then it will be the appropriate authority to issue a cc.

The bank authorities give approval to any building project after all requisite and documentation is complete so feel free there is nothing wrong with the cc

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Since your project is RERA registered file an RTI and take all the documents submitted for registration for project with them. RERA will not issue any construction certificate with proper papers

Anwar Zaidi
Advocate, Mira Bhayandar
231 Answers

4.5 on 5.0

Dear Cleint,

A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership.

Freehold property can be defined as any estate which is "free from hold" of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations.

But flats or apartment can never be free hold as because they are dwellings constructed on the same land owned by builder/developer which each apartment owner is a owner.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Just because banks and financial institutions grant home lone, the properties cannot become genuine or legally valid to purchase.

The NA is only for conversion from agriculture and not for conversion into plot.

The ZP, if an authority to approve plan then the CC also to be obtained from the same competent authority which becomes an essential criteria.

The gram panchayat has no authority to grant an CC, this would have been managed by builder on fake and false propaganda.

You take a legal opinion before venturing into the purchase.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

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