• Property possession issues

Hello
I have purchased a new flat at Wagholi Pune which comes under Gram Panchayat. Now from past 6 month though the building is complete we didn't get possession as the developer couldn't arrange for completion certificate. This project already has 12 towers which were occupied 2 years back. We were told that this entire project has 14 towers and the developer got partial completion of first 12 towers but now since this the final tower, which has been completed, it is getting delayed as we need completion for entire project.

Understanding the situation we Co operated with them. Today we got a call from them saying that we have still not got the completion certificate but we have decided to give possession to 10 residents. 

My Questions are

1) Do completion certificate really matters in Gram Panchayat? 
2) If in case I have been asked by builder to move without completion certificate, as one of the 10 nominations, should I move or deny? Knowing that builder is assuring the completion certificate will be received shortly by March.
3) If any of the Residents will move to a building which is without completion certificate, will that step harm the chances of getting completion certificate from the authorities?
4) What are my legal options now knowing the that face that the builder is taking more time than the stipulated for arranging completion certificate?

Regards
Rahul
9158884814
Asked 12 months ago in Property Law from Pune, Maharashtra
Religion: Christian
1. Well, in Panchayat areas there is no need for CC and hence I am surprised to hear this.
2. You should definitely move. You have paid the money and hence do not loose the physical possession.
3. No, not at all.
4. These maters take time. Ignore it and move into the property.CC will be handed over in course of time.
Devajyoti Barman
Advocate, Kolkata
5248 Answers
54 Consultations
4.9 on 5.0
1) building completion certificate is document attesting to the fact that a new building has been constructed and completed according to all the safety norms and regulations 

2) better to wait for issue of completion certificate 

3) if builder fails to obtain completion certificate you can move consumer forum against the builder for deficiency in service and seek orders to direct builder to obtain BCC within stipulated period 

Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
5.0 on 5.0
As per your question completion certificate is necessary for completing any building first let the builder completion certificate from the Gram panchayat  then you should move to that building or else you can wait up to march , if builder fail to give completion certificate then you can approach the consumer forum consult near by lawyer
Mir Mansoor Ali
Advocate, Hyderabad
57 Answers
4 Consultations
Not rated
Hello,
1) Practically, Completion Certificate does not matter much in a gram panchayat. However Completion certificate being a document that certifies that the building has been completed as per plan approved and safe to be possessed.Therefore you should insist on getting it.

2) You may move in, however insist on getting a written undertaking from the builder about the delivery of the completion certificate.If you move in now you lose the opportunity to seek compensation from the builder for delayed possession.His interest in allowing possession is that.

3) The residents  moving in by itself does not affect the process of the builder getting a CC. The possibility is that he has failed to comply with certain requirement or certain payments are pending on his part to thee gram panchayat.

4) If you refuse to take possession now and insist that the builder provide you with the CC first, you stand the chance to drag the builder to the consumer forum for deficiency of service.
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0
Hi, if the Sanction plan and license issued by the gram panchayath then they have the authority to issue completion certificate, but as per my knowledge i have little bit doubtful whether the panchayath has authority to issue sanction plan and license.

2. As per law the  completion certificate can be issued by the authority only  when   if the builder has constructed the property as per sanction plan and if there is any deviation then they  can't issue the sanction plan.

3. It is better you can file a consumer complaint against builder as the builder has failed and neglected to handover the delivery and there is a deficiency of service on the part of the builder.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Taking possession without getting CC is most unwise. The builders will always want you to move in without CC and OC, wherever applicable, but you should refuse it. The sword of demolition and/pr eviction remains hanging over the head of the inhabitants of the building which has been erected in defiance of the approved municipal plan. If the plan is violated then the building constructed in violation of the plan can be demolished by the municipality on its own or under a binding order issued by a court of law. Issue a lawyer's notice to the builder to obtain CC, failing which he should refund the money with compensation.
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0
If you are intending to buy a property in Pune Gram Panchayat, then it is to be confirmed that  whether that land has been converted into  Non Agricultural Land. N.A. order is very much required it is the basic thing which the society or any person are required to do before they develop the property, also you should see whether the layout is sanctioned by Town Planning, Whether the building map is sanctioned by collector.Also you should verify whether mutation in the name of owner has been done, also check whether your name will be mutated after sale deed or is there any problem regarding mutation.




1) Do completion certificate really matters in Gram Panchayat? 
It is a mere formality, having no much value or relevance to the completion of the construction of the flats/buildings because the approvals are obtained by passing grafts under the table.  An architect's certificate may be obtained in addition to this. 


2) If in case I have been asked by builder to move without completion certificate, as one of the 10 nominations, should I move or deny? Knowing that builder is assuring the completion certificate will be received shortly by March.
You can first move in the flats by obtaining possession certificate from the builder and after that if he is not procuring the completion certificate then you can contemplate for legal action on it at the later stage.






 3) If any of the Residents will move to a building which is without completion certificate, will that step harm the chances of getting completion certificate from the authorities?
Moving into the flats without completion certificate is always a risky issue, however on the assurances of  the builder and by his past performances a decision may be taken.



4) What are my legal options now knowing the that face that the builder is taking more time than the stipulated for arranging completion certificate?
You can move into the flats now on the basis of possession certificate with a written objection to it and if the builder is not complying to the assurance of procuring completion certificate within the time stipulated, you may contemplate to issue a legal notice to him to start with and afterwards with  consumer case. 
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
1. It is not acceptable reason that in place of isuing CC for the balance two towers, the panchayat wants to  issue CC for the entire project. The rule varies from state to state. In West Bengal CC is not issued by gram panchayats,

2. Take possession of the flat under protest duly mentioning your protest in the acknowledgement of possession letter. Find out from the  Registration office whether it will register the sale deeds without asking for the CC or not,

3. No. There will be no problem in getting the CC for your taking possession of the flats as insisted by the builder,

4. After getting the flat registered in your name and coming out of the clutches of the builder, you can file a complaint case before the local district Consumer Dispute Redressal forum alleging deficiency in service and unfair business practice claiming collection and handing over of the CC to you with damage and cost. 
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0
1) A home loan borrower can claim Income Tax exemption on interest payments of up to Rs 2 lakh and another Rs 1.5 lakh under Section 80 C towards the principal repayment for a Self-occupied property.

2)  you cannot seek these tax benefits in the pre-construction phase (i.e. no tax deductions available for an under construction house), even if you have started repaying the housing loan through EMIs.

3)  Section 24 of the Income Tax Act states that if a property is still to be constructed, there will not be any tax deduction on the interest payment for all of those years.

4) The interest paid (Pre EMI or interest component in FULL EMI) during under construction period can be claimed in 5 equal installments from the financial year in which construction is completed or Buyer gets the possession of House.

5) if builder fails to obtain building completion certificate / OC you can move consumer forum against the builder fpr deficiency in service and seek orders to direct builder to obtain BCC and OC within stipulated period 
Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
5.0 on 5.0
1)  under given circumstances how is it possible that I can get Income tax rebate on emi paid for this property? Or is it a chance that since I do not have completion certificate or occupancy certificate I won't get any rebate till possession? 
Income tax payable is in respect of the income of that year and any exemption is also based on the expenses incurred on that particular year which attract the privileges of exemption.  You can consult your auditor who will show the investment to claim exemption, this has nothing to do with the OC  or CC.





2) Since the completion certificate is yet to be received, in case I move to this property with final sale deed with builder, will that make me liable to get income tax rebate? 
The income tax liability or exemption will depend on the buying and selling of the property and the appropriate LTCG or STCG, the rebate or taxes will be applicable to that particular year's claim alone. 



3) In case I trust my builder and move this building knowing that completion certificate will be given by March weather m liable for income tax rebate as building will not have completion? 
The CC has no impact on applicable taxes or rebate.




T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
1. You have availed housing loan for which you are paying EMI which consists of principal and interest on the loan. You are required to collect a certificate from the lending Bank giving details of principal amount recovered through EMIs and also the interest portion of the EMI collected for the whole financial year. If it is your only house for dwelling, you will get rebate on the interest portion from your Income Tax having no connection with your taking possession of the flat,

2.You shall get the I.T. Rebate on the interest portion of the EMI every year till you repay the entire loan and do not pay any EMI, before and/or after registration of the sale deed,

3. You will not be "liable to get I.Tax rebate" but will be "entitled to get I.Tax rebate once you start paying the EMI on its interest portion as stated above,

4. No, for not giving CC for two towers you can infer that the entire project is illegal.You shall have to conduct a property/land search through a local lawyer  and also get the agreements checked to identify if there is any illegality in the project or not. This should have been done before booking the flat. 
Krishna Kishore Ganguly
Advocate, Kolkata
12131 Answers
233 Consultations
5.0 on 5.0
1. The entire interest paid on home loan can be claimed as a deduction for a house that is on rent. When the house taken with a home loan is occupied by the taxpayer or his family, or is left empty, then the interest paid can be claimed as a deduction up to Rs 200,000. The deduction on home loan interest cannot be claimed when the house is under construction.

2. Unless the sale deed is executed the rebate cannot be claimed.

3. I repeat unless OC is obtained the building's possession cannot be delivered. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
5.0 on 5.0

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