• Property Tax and OC issue for Mumbai flat

Dear Sir/Madam,

We are living in a under construction building in western suburb in Mumbai which has partial OC since past 4 years. By under-construction, I mean 8 floors are complete and flats are occupied but the builder still plans to build upto the 12 floor, however for the past 4 years builder is unable to start work due to lack of permissions. This is a redevelopment project. The 1st 4 floors occupied by existing members have OC, but the next 4 floors occupied by new buyers don't have OC. The society has been formed with owners of flats having OC, but owners of flats without OC have not been included in society. All floor members have valid registered agreements for their respective flats and have paid all payments asked by builder.

The MCGM has issued a notice to the society (instead of issuing notice to individual flat owners) to pay property tax for period years 2013, 2014, 2015. The builder has divided the property tax, flat wise and asked us to pay. The owners with OC have paid property tax, but the owners without OC have not. The builder is putting pressure on non-OC owners to pay the property tax to him and that he will in turn will pay it to MCGM. 

1) Are the residents in flats which have not got OC liable to pay the property tax to builder?
2) Can we compel the builder to issue OC to the non-OC flats? Is there any legal recourse?
3) Is property tax by MCGM/BMC double for under-construction property vis-à-vis completed building?

Request for your esteemed advice

Regards
Ashish
Asked 8 years ago in Property Law
Religion: Christian

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3 Answers

1) you can move consumer forum against the builder for deficiency in service and seek orders to direct him to obtain Occupation certificate

2)anyone who unlawfully constructs or reconstructs any building or part of a building will be liable to pay a fine every year as a penalty, twice the amount of property tax leviable on such a building". The fine will be charged without prejudice to any proceeding initiated against such unlawful construction.

3) The levy of the penalty shall not be construed as regularization of the illegal construction or reconstruction but will continue to be collected till the process of regularization is on or till such time that it is demolished,

4) flat-buyers and owners will have to bear the brunt of a builder's illegal construction as it is the flat owner who pays the property tax. most builders, before giving physical possession of the flats, normally insert a clause in the sale agreement that the purchaser shall be liable for payment of municipal taxes from the date of the possession

Ajay Sethi
Advocate, Mumbai
94733 Answers
7538 Consultations

5.0 on 5.0

A. Is there any resolution passed by the Association by obtaining majority vote to redevelop the building?

B. If yes, Is there approved plan for the additional floors?

C. Unless obtained the approved plan and follow the instruction of the local authority that construction would be treated illegal, deviated constructed building and non approval, no NOC from the competent authority would liable to demolish the construction and reject the OC for the particular flat.

D. Unless obtained OC the respective flat members should not occupy the same and the builder has no authority to receive tax from the flat members for their respective flat. However, if you already occupied the premises that you are liable to bear tax, electricity charges for your respective flat.

F. All the non OC flat buyers have right to demand for OC from the builder and you can approach the Consumer Forum with respect to the same after issued a legal notice to the builder under the deficiency in the Service.

B.T. Ravi
Advocate, Bangalore
943 Answers
96 Consultations

5.0 on 5.0

1) Are the residents in flats which have not got OC liable to pay the property tax to builder?

You may refer to the conditions of the sale agreement in this regard. You may insist the builder to provide the OC to enable you to pay the property tax failing which you may go against him through a consumer forum.

2) Can we compel the builder to issue OC to the non-OC flats? Is there any legal recourse?

Yes, issue lawyer's notice demanding OC, failing which you may resort to legal action as advised above.

3) Is property tax by MCGM/BMC double for under-construction property vis-à-vis completed building?

It may include the penalty clause and not what you understood.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

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