This is how the builders will put pressure on the buyers after which based on the possession of flats they will cut sorry figure to the authorities stating that they are unable to complete the incomplete work in the construction and they will insist the authorities to issue completion certificate or OC. The corrupt officials in the department will utilise the weakness and demand huge amount to grant sanction at a later stage which will again fall n the head of the buyers who will be helpless at that time than to pay whatever demanded because they are in dire need of all the service facilities. If you dont put pressure on the builder at this moment then you people may not be able to get the OC which is very much essential for provision of all basic amenities namely Water supply and all other allied services, All the buyers should put a combine fight for this. Dont accept the builder's proposal or you may sign them with objections pointing out the incomplete works by making a list of it including procuring the OC. To get the Environmental clearance certificate the builder has to comply with the necessary formalities, the buyer has no role to play in it.
Possession of new flat with out EC, CC
Dear Learned Sir, We have booked a flat in a gated community in Chennai, promoted by a reputed builder. He is building 1200 flats as phase 1 and Phase 2. Out of these 1200 he asks 350 people to take possession of flat. But..... 1. He is yet to get Environmental Clearance. 2. Because of 1 he is not able to get even partly completion certificate for the blocks completed. 3. Because of above 2 , tamilnadu electricity board is not giving permanent EB connection for the 350 flats. 4. He is getting temporary Commercial connection from EB and says this will meet all the flats EB requirement. 5. He is asking us to take possession by paying the last 5%. Request your esteemed advise on taking up the possession of flat both on legal front and as well as Investors safety on their hard earned money. Thanks in advance, With Regards, Krishnan K V +[deleted]
6 Answers
1) pay the balance amount demanded by builder but don't take possession of flat as no building completion certificate or OC is issued
2) inform builder that you will take possession when OC is issued
Dear Mr Ajay Sethi, Thank you for your immediate response. Can you please answer my following three questions: 1. Paying the balance and not taking possession: how can it help us? 2. As the project is huge( 1200 units),and the builder is handing over only Phase 1 ,of 350 units, we have time for Phase 2 and 3 to come. Can't we take possession and wait ,as simply in this case the builder cannot run away ? 3. Will making Association immediately will help us?
Dear Mr Ajay Sethi, Thank you for your immediate response. Can you please answer my following three questions: 1. Paying the balance and not taking possession: how can it help us? 2. As the project is huge( 1200 units),and the builder is handing over only Phase 1 ,of 350 units, we have time for Phase 2 and 3 to come. Can't we take possession and wait ,as simply in this case the builder cannot run away ? 3. Will making Association immediately will help us? Krishnan
1) if yiu don't pay balance amount builder will charge you interest for delay in making payment
2) possession can be delivered by builder only after OC I issued . It indicates that building has been completed as per sanctioned plans
3) if you take possession builder will start charging your maintenance from date of taking possession
4) society shoukd be formed after OC is issued
The law says one cannot legally move into a building unless the developer gets an occupancy certificate from the authorities concerned.
But it's not as easy as it seems, considering the quantum of violations, nexus between civic officials and builders and a lack of stringent laws. Many errant builders and developers have, over the years, gone scot-free, say those familiar with the working of the sector.
There are several examples of builders disappearing without giving OCs and legal water connections to housing complexes. Apprehensive of losing their homes, buyers who've invested hard-earned money move into their flats and make do with water from pumps and water tankers.
So why are such illegal buildings mushrooming in such places?
Following a real estate boom, unscrupulous builders began construction without approved plans, in an effort to increase profits. This not only broke down the system, but also fuelled corruption."
In the given situation you may be aware of the building collapse in moulivakkam, now the NGT has ordered demolition of other high rise building in the surroundings due to not getting the environmental clearance.
Can your builder assure that this thing will not happen to your own building that has been built but the EC has not been obtained due to whh other fitness certificates by the competent authorities are not able to be procured.
If you are in a hurry to take possession of the incompletely constructed building, it is your decision to take it and run behind the builders and authorities for each and every approval.
In these circumstances it will be suicidal to take possession. You should pay the balance but refrain from taking the possession. The balance should be paid so that you may successfully sue him if he does not obtain the necessary clearances in a time bound manner.
It will be illegal to take possession when the necessary clearances have not been obtained. If you go to court having taken possession without EC and CC then you will be deemed to have come to court with unclean hands.