• Illegal flat registration

My friend has booked a flat in a residential project in Thane. The project comprises 28 storey 5 towers. The flat purchased is on 11th floor. The registration of flat has been done in sub-registrar office of thane. The builder has CC (Commencement certificate) till 8th floor for 2 wings and till 2nd floor for remaining wings.He has IOD for all wings till 18th floor. My question are as follows

1> Is the registration legal for 11th floor if CC is till 8th floor. Ideally builder should have sold higher floor flats after getting CC for higher floors but here he has not only sold it but also registered it. Can anyone disqualify this registration if yes then under which act and which section?

2> The developer has mortgaged the entire project with NBFC. Although the NOC from NBFC was not provided at time of registration. Again isnt this illegal and a NOC from NBFC should be provided as part of supporting document for registration? Is NOC mandatory or optional?
Asked 1 year ago in Property Law from Thane, Maharashtra
Religion: Hindu
1)  he Municipal Corporation of Greater Mumbai, issues commencement certificate only after compliance of terms & conditions of the letter of approval (I.O.D.) by the applicant 

2) in your case builder has obtained commencement certificate from muncipal coprporation to start constriction Work  on the site till 8th floor Hence builder cannot  execute agreement for sale  with the purchaser for sale  of flat on 11th floor 

3) The work carried out without C.C. is treated as unauthorised and is offence under MRTP Act, which attracts penal action and proceedings against the applicant

4) for sale  of individual flat builder needs NOC from financier . 
Ajay Sethi
Advocate, Mumbai
44206 Answers
2562 Consultations

5.0 on 5.0

1. Registration of flat is different to that of the completion certificate. The registrar's office is not bothered about whether the flat has been completed and CC is obtained or not. Registration of flat has nothing to with the completion certificate.

2.  The builder should procure NOC from the NBFC, it is his duty to obtain that.
NOC is mandatory since the builder has mortgaged the property to that NBFC.
But even that is not necessary for registering the property.
T Kalaiselvan
Advocate, Vellore
34332 Answers
368 Consultations

5.0 on 5.0

1. He could not have even constructed beyond the 8th floor if the permission was till 8th floor. It was unwise for the buyers to knowingly purchase the flats constructed above 8th floor. The registration cannot be unilaterally cancelled by the buyer. The only remedy for the buyers is to file a suit for cancellation of the sale deed on the ground that the requisite permission was not obtained by the builder, but they will have to explain why they did not conduct due diligence.

2. The buyers should ask the builder to regularize the illegal construction by paying the penalty prescribed by the authorities.

3. The project under mortgage cannot be sold without the NOC from the mortgagee. It seems that the buyers were ignoramuses who miserably failed to conduct due diligence before purchase.
Ashish Davessar
Advocate, Jaipur
22958 Answers
631 Consultations

5.0 on 5.0

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