OCCUPANCY CERTIFICATE OR COMPLETION CERTIFICATE FOR APARTMENTS - What to do?

OCCUPANCY CERTIFICATE OR COMPLETION CERTIFICATE FOR APARTMENTS

The purchasers of flats and apartments are more concerned about A or B khata and most of them does NOT bother to verify whether the property purchased by them has a valid Completion certificate/Occupancy certificate issued by the appropriate authority and not by the scrupulous builder/developer.  The completion or occupancy certificates issued at Bangalore by the builder does not have legal sanctity at all, it is a useless and waste piece of paper. Most of the builders/developers are so cunning to such an extent, they obtain the occupancy certificate and thereafter commence or put up illegal structures and the apartment buyer does not even know about it. Hence, a thorough examination into all approvals and compliance of all the conditions laid down is for the benefit of the buyer and not for the Government or for the authorities. In simple terms, the absence of a valid Completion certificate / /Occupancy certificate, means that the building may not have been built as per approved plan, and the threat of demolition of unauthorised structure looms large. Further, if you want to sell or hypothecate the property after a lapse of say 10 years, you will not be able to do so, if you do not possess a  valid Completion certificate / /Occupancy certificate. In Bangalore alone, 50% of the apartments DOES NOT HAVE COMMENCEMENT CERTIFICATE NOR OCCUPANCY CERTIFICATE, BUT ALL THESE APARTMENTS HAVE BEEN ILLEGALLY FINANCED BY THE BANKS. In the event of an enquiry or suit or examination, the borrower is at serious trouble than the lender(banker). In such a case, the borrower is equally liable and responsible for misrepresentation of facts and for filing false or wrong affidavits stating that the building has been constructed as per the plan and the banks reserves the right to recall the loan with all damages and charges.   what about the property for which the builder has not given you a valid Completion certificate / /Occupancy certificate? What to do? Issue a notice to the builder to apply and hand over the above certificates within one month from the date of issue of your notice. If the builder does not respond, file a complaint in the consumer forum, and pray the forum to issue directions to the builder to apply and obtain the above certificates. You can also mention in the complaint that the Hon’ble Supreme Court has given a judgement in Faqir Chand Gulati vs Uppal Agencies Pvt. Ltd. & Anr on 10 July, 2008 that “Even if such a provision for providing completion certificate is not found in the agreement, the builder cannot escape the liability for securing the C.C. and providing a copy thereof to the owner. The law requires the builder to obtain completion certificate of such a building.” Some of the excerpts from the above judgement are as follows:- 1. "Builders violate with impunity the sanctioned building plans and indulge deviations much to the prejudice of the planned development of the city and at the peril of the occupants of the premises constructed or of the inhabitants of the city at large. Serious threat is posed to ecology and environment and, at the same time, the infrastructure consisting of water supply, sewerage and traffic movement facilities suffer unbearable burden and are often thrown out of gear. Unwary purchasers in search of roof over their heads and purchasing flats/apartments from builders, find themselves having fallen prey and become victims to the design of unscrupulous builders. The builder conveniently walks away having pocketed the money leaving behind the unfortunate occupants to face the music in the event of unauthorized constructions being detected or exposed and threatened with demolition. Though the local authorities have the staff consisting of engineers and inspectors whose duty is to keep a watch on building activities and to promptly stop the illegal constructions or deviations coming up, they often fail in discharging their duty. Either they don't act or do not act promptly or do connive at such activities apparently for illegitimate considerations. If such activities are to stop, some stringent actions are required to be taken by ruthlessly demolishing the illegal constructions and non-compoundable deviations. The unwary purchasers who shall be the sufferers must be adequately compensated by the builder. The arms of the law must stretch to catch hold of such unscrupulous builders. At the same time in order to secure vigilant performance of duties,responsibility should be fixed on the officials whose duty was to prevent unauthorized construction, but who failed in doing so either by negligence or connivance." 1.2. “ If the construction is part of a building which in law requires a completion certificate or C&D forms (relating to assessment), the builder is bound to provide the completion certificate or C&D forms. He is also bound to provide amenities and facilities like water, electricity and drainage in terms of the agreement. If the completion certificate and C&D forms are not being issued by the Corporation because the builder has made deviations/violations in construction, it is his duty to rectify those deviations or bring the deviations within permissible limits and secure a completion certificate and C&D forms from MCD. The builder can not say that he has constructed a ground floor and delivered it and therefore fulfilled his obligations. Nor can the builder contend that he is not bound to produce the completion certificate, but only bound to apply for completion certificate. He cannot say that he is not concerned whether the building is in accordance with the sanction plan or not, whether it fulfills the requirements of the municipal bye-laws or not, or whether there are violations or deviations. The builder cannot be permitted to avoid or escape the consequences of his illegal acts. The obligation on the part of the builder to secure a sanctioned plan and construct a building, carries with it an implied obligation to comply with the requirements of municipal and building laws and secure the mandatory permissions/certificates.” 3). “A prayer for completion certificate and C&D Forms cannot be brushed aside by stating that the builder has already applied for the completion certificate or C&D Forms. If it is not issued, the builder owes a duty to make necessary application and obtain it. If it is wrongly withheld, he may have to approach the appropriate court or other forum to secure it. If it is justifiably withheld or refused, necessarily the builder will have to do whatever that is required to be done to bring the building in consonance with the sanctioned plan so that the municipal authorities can inspect and issue the completion certificate and also assess the property to tax. If the builder fails to do so, he will be liable to compensate the complainant for all loss/damage. Therefore, the assumption of the State Commission and National Commission that the obligation of the builder was discharged when he merely applied for a completion certificate is incorrect