• Occupation certificate

In banglore i have applied for purchase of flat in apartment which is under construction. It appears all land and constuction documents regarding necessary approvals are legal and ok.Many leading banks are giveing loans.  Flats would be ready for occupation with in 5 months ( progress of work is ok )  But Builder told me now,  for OC association  would have to apply to concerned authority as it would have financial consideration and only  he would support from outside what ever documents and help required by association . fifty percent money i have paid what to do ?
Asked 3 years ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1.Occupancy Certificate will be issued by the BBMP/BDA after inspecting the apartment block and after the officials are satisfied the OC will be issued.
2.Normally the Builder has to obtain the OC.  However the contention of the builder is true to the extent that one has to spend quite a big amount towards unofficial expenditure in obtaining the OC from BBMP/BDA.  May be for that reason the builder is asking the association to apply to the concerned autority and he has accepted to handover the necessary documents to the association.
3.The Association members may take an amicable decision regarding the same.
4.Even though the building plans are approved in some cases, OCs are denied due to other violations. Obtaining an OC is a requirement under the Karnataka Apartment Ownership Act, 1972. The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the BBMP or BDA. The corporation can ask apartment owners to leave such illegally occupied flats or impose heavy penalties. 
5.You can take back your 50% advance money from the developer in case the developer fails to obtain OC.
Shashidhar S. Sastry
Advocate, Bangalore
1633 Answers
107 Consultations

5.0 on 5.0

1) it is duty of builder to obtain occupation certificate from municipal corporation that building has been completed as per sanctioned plans 

2) since you have already paid 50%of the consideration pay balance amount and take possession of the flat 

3) then move consumer forum against the builder for deficiency in service . seek orders that builder be directed to obtain OC within stipulated period and also seek compensation for mental torture undergone by you 
Ajay Sethi
Advocate, Mumbai
45474 Answers
2672 Consultations

5.0 on 5.0

Hon’ble Supreme Court has given a judgement in Faqir Chand Gulati vs Uppal Agencies Pvt. Ltd. & Anr on 10 July, 2008 that “Even if such a provision for providing completion certificate is not found in the agreement, the builder cannot escape the liability for securing the Completion Certificate and providing a copy thereof to the owner. The law requires the builder to obtain completion certificate of such a building.”

If the construction is part of a building which in law requires a completion certificate or C&D forms (relating to assessment), the builder is bound to provide the completion certificate or C&D forms. He is also bound to provide amenities and facilities like water, electricity and drainage in terms of the agreement. If the completion certificate and C&D forms are not being issued by the Corporation because the builder has made deviations/violations in construction, 

it is his duty to rectify those deviations or bring the deviations within permissible limits and secure a completion certificate and C&D forms from MCD. The builder can not say that he has constructed a ground floor and delivered it and therefore fulfilled his obligations. Nor can the builder contend that he is not bound to produce the completion certificate, but only bound to apply for completion certificate. He cannot say that he is not concerned whether the building is in accordance with the sanction plan or not, whether it fulfills the requirements of the municipal bye-laws or not, or whether there are violations or deviations. The builder cannot be permitted to avoid or escape the consequences of his illegal acts. The obligation on the part of the builder to secure a sanctioned plan and construct a building, carries with it an implied obligation to comply with the requirements of municipal and building laws and secure the mandatory permissions/certificates.”

 1.3    “A prayer for completion certificate and C&D Forms cannot be brushed aside by stating that the builder has already applied for the completion certificate or C&D Forms. If it is not issued, the builder owes a duty to make necessary application and obtain it. If it is wrongly withheld, he may have to approach the appropriate court or other forum to secure it. If it is justifiably withheld or refused, necessarily the builder will have to do whatever that is required to be done to bring the building in consonance with the sanctioned plan so that the municipal authorities can inspect and issue the completion certificate and also assess the property to tax. If the builder fails to do so, he will be liable to compensate the complainant for all loss/damage. Therefore, the assumption of the State Commission and National Commission that the obligation of the builder was discharged when he merely applied for a completion certificate is incorrect.”

Ajay Sethi
Advocate, Mumbai
45474 Answers
2672 Consultations

5.0 on 5.0

Occupancy certificate or completion certificate issued by the Municipal authorities and it is done when as per Municipal regulations basic amenities including electricity and water connection is restored in the site.
So you have nothing to worry on this account as the same is the headache of the builder. If there is no defect in the tile of the property then you can safely buy this property.
Devajyoti Barman
Advocate, Kolkata
12818 Answers
166 Consultations

5.0 on 5.0

1. What does the agreement say with respect to the responsibility to obtain OC?

2. In the absence of an agreement to the contrary it is the legal responsibility of the builder to obtain the Occupation Certificate and give it to the owner. Without OC being granted the possession cannot be given.

3. The association cannot apply for OC.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

Hi, it is the duty builder to get the Occupation Certificate after completion of the Building he has to apply for Occupation Certificate as per Section 310 of the Karnataka Municipalities Act.

2. If the Building is constructed as per the plan and license then  only Occupancy Certificate is issued.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

1. You should ask him to give you this proposal/demand in writing,

2. The builder is duty bound to collect OC and not the buyers of thwir Association,

3. Send him a legal notice calling upon him to collect the OC and hand over possession of the flats to you as per the agreement and to arrange for registration of the said flats after receiving the payments,

4. If he refuses, you shall have to approach the Consumer Forum accordingly.
Krishna Kishore Ganguly
Advocate, Kolkata
18471 Answers
448 Consultations

5.0 on 5.0

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