File complaint against builder before consumer forum and seek orders to direct builder to obtain OC within stipulated period
2) also seek litigation costs and compensation for mental torture undergone by you
Compensation due to delay in providing OC from builder
I bought an apartment in Navi Mumbai in 2014. The building is ready and so I had paid 98% of property value with promise from builder to provide OC in 4 months. The Sale agreement states that he would have to pay simple interest of 9% on property value for delay except for reasons which are beyond his control. He has not been able to provide OC until now due to following reasons: 1. The builder informed us his property falls under CRZ-2011 (Zone B) regulations and so OC is not issued. He had started his construction before CRZ-2011 regulation was passed and had obtained CC from Cidco for the same. But when he filled for OC the govt authority denied him an OC as he falls under post-facto case where the builder had started constructing a building when the CRZ rules changed. He was issued Commencement Certificate in 2010. The builder claims that he has been trying to talk to Central govt and State for the same 2. Recently in May'22 the builder informed us that the State Govt has stated that he falls under violation of CRZ-1991 regulation. He claims that if that was the case he should not have been issued a Commencement Certificate(CC) to begin with. Overall the builder has been giving false promises of providing OC in "few months" from 2014 onwards and does not give any clarity on the same. Is the builder legally liable to pay me compensation for delay in getting OC? He has always said that he was never informed by Cidco or govt bodies while issuing CC or when CRZ rules changed but yet he has never filed a legal case against government or any govt. body like Cidco to contest his case. What should be my course of action?
Asked 2 years ago in Property Law
Religion: Hindu
8 Answers
Ask the builder what representations he has made to the authorities for getting OC
He has to file a writ petition in the high court against the authorities for not issuing OC
You seem to be in possession without OC
That's an illegal possession and no possession in the eyes of law
So it can be said that you are not given the possession
As the project was not issued in 2017 when the Rera act came into force, it will be considered as an ongoing project and would be liable to be registered with Rera
So first you will have to file a source information to maharera Informing it that the builder has not registered the project despite the same being mandatory
Thereafter you can file a Rera complaint to claim compensation for no possession with OC
Alternatlvey you can also approach the consumer forum
You need to get over the fact that you are actually in physical possession of the flat
You issue a legal notice to the builder demanding the production of OC, failing which you can inform him that he will be sued seeking compensation for deficiency in service.
Since he has delivered possession and and the flat has been registered to your name, you may not be eligible to claim interest towards delay in providing the OC.
You can approach consumer court for the same seeking compensation for deficiency of service
- Under paragraph 8-I (i) of COASTAL REGULATION ZONE NOTIFICATION MINISTRY OF ENVIRONMENT AND FORESTS (Department of Environment, Forests and Wildlife) S.O.19(E). no new construction is CC is issued only for construction nor falling within CRZ.
- If the project falls under CRZ-1991 regulation, CC would not have been issued.
- In CRZ buildings are permissible on the landward side of the hazardous line.
- Builder is bluffing.
- Submit an RTI application to CIDCO asking how CC is issued, you will know facts.
Dear Client,
for the delay in possession of the flat , the builder is under obligation to pay 10% interest for the period of delay, and even you came in possession then also you can claim from him. you can approach RERA and address your complaint.
You may file a written complaint with your State RERA Authority seeking appropriate redress. Issue a legal notice to the builder to refund you the entire value of the building including the stamp duty and the registration charges as it was an illegal construction. Then, proceed to file a suit at the proper court in consultation with your lawyer.
- Commencement Certificate (For under construction property) - It is a legal document issued by the local authorities like BDA/BBMP after the inspection of the site.
- Further , this document states that project meets the given criteria and helps in the commencement of a construction on a site by the builder.. and without getting a Commencement Certificate the construction would be considered illegal,, and attracts penalties and can even attract an eviction notice.
- Otherside , an Occupancy Certificate is obtained after the completion of the construction. It is important at the time of buying a property, seeking a home loan, before the builder allows people to take possession of the property and, for the transfer of Khata. This Certificate certifies that the project is ready for occupancy.
- Hence, it means that the said builder has not obtained the property authorization from the competent authority , and further he is making excuses to the buyer for the delay.
- Further, if the builder is delaying in construction & delay in possession, then the builder will have to pay 10% interest on the value of the property for delayed possession of flats.
- Hence, if builder fails to delivers the possession of the flat to you on time, then you can cancel the agreement due to his fault and you are liable to get full refund of paid amount with 10 percent interest.
- Further, if you get the possession of the said flat lately, then also you can claim 10% compensation from the builder.
- Send a legal notice to him for cancelling the agreement due to his fault , and if no response then file a compliant before the consumer forum.
