The Occupancy Certificate (OC) is a document issued by a statutory authority (such as BBMP and BDA in Bangalore) and it gives the applicant (builder) permission to “occupy” the property.
No Occupancy Certificate means that the building has not been given a “Pass Certificate”. This means that it does not have all the mandatory infrastructure/ clearances that make the building inhabitable.
Builders, without fulfilling the mandatory terms of sanction and/or promises to the buyers are eager to hand over and move on to the next project. By getting people to live in the flats, they create a shield for themselves. They also escape from the delay penalty clauses that are in the agreement.
Most buyers do not pay much heed to maintenance charges in the initial stage of booking, but it comes back to haunt them as the possession date nears.
The builders may ask for 12 months, or 24 months, of maintenance charges in advance at the time of possession. Once handed over to the RWA, the frequency of collecting the maintenance charges is decided by it.
As a resident paying maintenance charges, you can look at the actual amount spent by the builder on maintenance, along with the break-up
"It is the residents' right to be aware of the amount spent by the builder on maintenance. Till a society is formed, a builder pays for the maintenance and has to keep his books open for scrutiny by the residents."
If the owner has put his flat on rent, it still doesn't absolve both him and the tenant from the responsibility of paying maintenance charges. The final responsibility even if the flat remains unoccupied, rests with the owner.
Maha RERA has ruled against the builders asking them not to charge maintenance fees to those buildings which have not received an OC to those buyers who did not take possession.