Bombay High Court Declares Builder cannot delay transfer of society after OC is given.

By Abhay Harish Shah , Realty Quarter

Occupancy Certificate is a significant report which shows that the structure was built in accordance with acceptable plans and local legislation. After ensuring that all local regulations are complied with, the local municipal company issues this paper. The builder shall receive the certificate of occupancy. Many financial institutions request a certificate of occupancy while providing loans to property purchasers.

The High Court ruled that once an occupancy certificate (OC) is issued and possession is transferred to flat purchasers there would be no reason for the construction worker to delay the conveyance.

The developer of Mayfair Kumkum building at Andheri (West) filed a petition which was considered by a division bench of justices Indrajit Mahanty and Anant Badar. They challenged a 2018 order of the competent authority granting a certificate of deemed conveyance to the society.

“When the promoter has obtained the complete occupancy certificate and when ownership is transferred to the owners (property buyers), it is not justified that the conveyance certificate has not been given for the benefit of society,” the judges stated.

The builder argued that he had the right to additional FSI in accordance with fresh regulations. The bank refused to comply and pointed out that in May 2018, the Authority granted the order considering deemed conveyance, and in November 2018, the shift in the Development Control Regulations was given.

The judges said, “In our perspective, the promoter has contravened the criteria set out in the Maharashtra Ownership Flats Act by not influencing the conveyance considered in favour of the community, and the qualified authority was fully justified in providing the guidelines for the considered conveyance.”

The company was created in 2013 and in September 2014 OC was granted They went to the assistant secretary, appointed by the MOFA as qualified authorities, seeking deemed conveyance. The company stated that, according to rules, transmission should have taken place within four months of receiving OC. The promoter asserted the request of the society was early since after five years the purchase contract stipulated that the housing was to be provided.