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By Legal Bureau

Occupancy Certificate
Occupancy Certificate is a very important document. It evidences the completion of the building as per the approved plan and compliance of local laws. local bodies like city corporations / city municipalities issue occupancy certificates. Without the occupancy certificate, it is difficult to get the water and sanitary connection. Financial institutions insists on occupancy certificate to sanction loans.
Problems with respect to issuance of occupancy certificate arise on account of violation of building laws which are increasing day by day. Though the people have spent their hard earned money on the project with a dream of owning a house, they could not occupy the house for want of occupancy certificate. They have to suffer for none of their faults. Builders having good connections escape through various loop holes in the law.
Having invested precious money in such buildings and after waiting for many years to get an occupancy certificate, the purchasers occupy the houses lest they may loose the property. They prefer to occupy the flats without power, water and sewerage connections instead of loosing the property.
In one of the cases the builder unable to obtain the occupancy certificate after a prolonged wait requested his purchasers and handed over the apartments without power, water and sewerage connections. He put the entire blame on revenue authorities and disappeared. The occupants have to find their own way.
Obtaining the approval of the plans has become just a casual affair and nobody will abide by that. It is just a document to be produced during inspection. During the boom time a builder constructed several houses and flats violating building rules and regulations. He deviated from the approved building plans and went on to construct apartments where he should not have constructed.
The civic authorities refused to give occupancy certificate despite best efforts of the builder.
In the mean time, the apartment purchasers on the assumption that things were happening to their satisfaction, performed house- warming ceremonies and took possession of the flats. When they were about to move in, the builder revealed the shocking news that even though he had constructed the apartments and houses to their liking, the authorities were not issuing occupancy certificate on one pretext or the other.
Another builder constructed small flats targeting the middle- income group. The authorities, however, refused to issue occupancy certificate because of deviation from the approved plan. In this case, the builder got the plan approved for construction of 4 dwelling units – 2 on the ground floor and 2 on the first floor. However, he did some thing different in gross violation of the approved plan. Instead of constructing 4 dwelling units, he constructed 6 dwelling units. The persons who have invested in the flats are now desperate, as they would lose their money and the fiats if the authorities decide to demolish the structure.
It is not that only the flat owners are suffering. A few builders, who have a heart for the investing public, too face problems. One such builder constructed 8 flats in accordance with the building regulations and bye-laws and approved building plan. He has completed five and 3 remains to be completed. The builder has received the full payment from five purchasers other three have backed out. This has put the builder in a difficult situation. For want of funds, three flats remain incomplete. The authorities will issue occupancy certificate only after completion of the entire construction and the financial institutions are refusing to lend in the absence of occupancy certificate or no objection certificate from the authorities. The net result is that not only the builder is losing money but also the purchasers of the flats, who have to pay interest to the financial institutions. The financiers too face difficulties in getting back loan installments.
The authorities in the scheme of things must be blamed for this state of affairs. The inspecting authorities do not carry out periodic and surprise checks at the construction site. In case of deviation they should take the builder to task in the beginning itself and not at the fag end of the construction. Majority of the builders follows rules and regulations; but a few do not. They dishonor rules and regulations by violating them.
This is a vicious circle, which only the government can break. Government must initiate immediate remedial action to stem the rot. The authorities shall not be very rigid in granting completion certificates. If the builder has deviated a little more than the allowed percentage, the authorities may impose the penalty and regularise the building.
The investors too must share the blame. They do not check the antecedents of the builder and his track record ‘Before taking possession they do not check whether the building is according to the sanctioned plan and the fixtures are according to the agreement. Many do not demand occupancy certificate, parent documents, tide deeds, deposit receipts, from the builder.
The purchaser who has not collected all the required documents, has to face various types of problems at a later stage.

46 thoughts on “Occupancy Certificate is must for housing societies”
  1. i have availed of ICICI Loan and repaid the same as well. It seems now that the building hasbn’t yet received the OC – not sure how was the loan granted?
    The OC is not issued to most developers in my street under the pretext that the road to be developed was not handed over to the BMC. This further complicates the matter, since the BMC has problems allocating funds for repairs of the road as well.

    What is a solution that we as members of a housing society can implement?

    1. OC is major issue. Even housing financiers having agressive marketing mode do such thing. The society must ask BMC to take over since DP roads are defined before the layouts and plans are passed.

  2. Hi,
    we have booked a deal in mira rd,and the building doesnt have an oc the bank says that they require it or atleast the ulc.what to i do next,we have already paid the owner 20%.
    please can we apply for an oc certificate or any alternate solutions

  3. Some Bldg having Elect,Water but they don’t have OC so how i can get the oc give me solution in this matter or without OC is this poosbile to purchase the ftat pls give me advice which problem to be faced after that

  4. @rosy Since you have only paid 20% of the amount and not paid the full amount as the bank cannot give you the remaining amount due to lack of OC, you are still on the right side of the law and can claim not only your 20% advamce back due to non-availability of mandatory legal document, but also claim damages for every signgle day of delay in return of your amount, as it is now annexed by the seller, and charges of fraud, embezzlement, trying to sell a flat in violation of building laws when the buyer has the right to cancel such deal, can be made against the seller if he still retains your money after you”ve notified the seller that OC is not provided. Consider a team of competent lawyers, nothing much to worry as law is on your side.

  5. Buildings not having occupancy certificate or having deviations beyond legally allowed limits are illegal, not marketable, and not free of charges:


    5.7 Occupancy or letting of the new buildings –

    No person shall occupy or allow any other person to occupy any new building or part of a new building for any purpose whatsoever until occupancy certificate to such buildings or part thereof has been granted by an officer authorised to give such certificate if in his opinion in every respect the building is completed according to the sanctioned plans and fit for the use for which it is erected.

    The Authority may in exceptional cases (after recording reasons) allow partial occupancy for different floors of a building .

    6.0 Deviations during Construction
    i) Wherever any construction is in violation/deviation of the sanctioned plan, the
    Commissioner may, if he considers that the violations / deviations are within 5% of (1) the set back to be provided around the building, (2) plot coverage (3) floor area ratio and (4) height of the building and that the demolition under chapter XV of the Act is not feasible without affecting structural stability, he may regularise such violations/deviations after recording detailed reasons for the same.

    ii) Violation/deviation as at 6.0 (i) above may be regularised only after sanctioning the modified plan recording thereon the violations/deviations and after the levy of fee
    prescribed by the Corporation from time to time.

    iii) Regularisation of violations / deviations under this provision are not applicable to the buildings which are constructed without obtaining any sanctioned plan whatsoever and also the violations / deviations which are made inspite of the same being specifically deleted or rejected in the sanctioned plan.


    RBI – Master Circular On Housing Finance can be downloaded from RBI directy at:

    Instructions for the bank:

    B. i) In cases where the applicant approaches the bank/FIs for a credit facility to purchase the built up house/flat, it should be mandatory for him to declare by way of an affidavitcum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.

    ii) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.

  6. I had seen one property near Dahisar West. Building has 4 Wings (A, B, C, D). Building is 10years old. Wing A, B, C have OC and other document clear. Also Society is formed. However Wing D has still not got the OC to any of the Flat. The Flat which I am looking was also having Housing Loan from SBI. I heard that there is some dispute going on between two builders and since then even after 10 years also OC is not available for any of the flat in D Wing. Please suggest what I should do. Shall I go ahead and check out the deal, I am sure I will get the loan on the basis of last loan cases, but want to check out whether I will be in any kind of trouble if I take that flat. In Absence of OC what all document should I ask.

  7. I had seen one property near Thane. Building has 3 Wings (A, B, C). Building is 20years old. Wing B, C have OC and other document clear. Also Society is formed. However Wing D has still not got the OC to any of the Flat. Please suggest what I should do. Shall I go ahead and check out the deal, want to check out whether I will be in any kind of trouble if I take that flat. In Absence of OC what all document should I ask.

  8. i want to purchase flat in andheri east , but most of the buildings don’t have occupancy certificate.
    all such buildings are 25 to 30 years old. what problem i will face if i purchase a flat in such buildings.

  9. while purchasing a resale flat , which are the list of documents i must see & check , so that i will come to know that the property is legal & all documents are clear.

  10. I have looking to make a deal for a flat in a society,which has 4 wings A,B,C,D and A B and C got constructed 5years back D is under construction. Now the person in Wing C is interested in sell the flat but he doesn’t have OC and neither society has formed yet. Builder is ready to give NOC. In this case what should be the approach and should I go for it or not. After talking to Builder, she assured that after completion wing D he will give the fine imposed on him and will give the OC to the society.

  11. The builder who redeveloped our MHADA bldg (existing society over 20 yrs) has provided us with a Building Completion Certificate and has told us that there is no need for an OC when a BCC is obtained. Please let us know whether an OC is necessary.

    P V Jayaprakash

  12. Wanted to know if the builder isn’t able to obtain the Occupancy Certificate is the builder liable for not keeping to his side of the contract? 

    What is the legal recourse in such situations?
    The builder (very reputed) where I live says that the OC is on its way, and we have been hearing this for the past 4 months, but no sign of the OC coming in. 

    I occupy my apartment and I’ve already done the interiors and live in it. we have water, electricity and security. It is a very high end apartment in Bangalore…. Is my occupancy legal? How can I ensure that the OC is obtained when it is the job of the builder?

  13. I have purchased flat where builder do not have OC . The Society is already formed. Builder applied three years back but Muncipality still have not issued OC despite every thing is in accordance with plan.

  14. I took a loan from ICICI in 15th Nov 2004. The builder handed over the flat for occupation on 10th Nov 2007. But I have received the OC fron the muncipality only in Dec 2008. As per income tax rules since the period of occupation from loan sanction date is more than 4 yerars, can I avail the complete 1,50,000/- as interest on borrowed capital for self occupied property or am I just eligble for 30,000/- . The delay on receiving the OC was from the builder. Kindly advice.

  15. I am a NRI and have bought a commercial shop in Mumbai few months back. During the deal I came to know that the shop premises / building does not have a OC (Occupation certificate) issued by BMC.

    I did not want to go further but due to some circumstances and assurance from the agent that there is no problem in buying such property I had to finally buy it.

    Still my doubt and fear is will I have major problem when I need to sell this property? Yes my agent also said that 70% to 80% of the buildings in Mumbai are without OC but then too the buying and selling happens. Please if you can enlighten me on this and is there any bill going to be passed in Mantralaya about this issue.

    FYI – I have a commencement certificate and also this building is not a co-op society as it only has 9 members, whereas I was been informed that to form a society there has to be more then 11 members.

    I have an idea that I will not be able to mortgage this property as some bank do require OC for their documentation.

    Please if you can reply me by mail the complete information on this and clear my doubts.

    Many Thanks

  16. I have purchased a 1rk with terrace flat in bhaydar ,building is 8 months old and have not received OC , kindly suggest can i cover the terrace with shed or pack the same with sliding windows?

  17. Hi, I m Prathamesh, want to ask u about OC, We are going to purchace a flat in thane, Maharashtra. But the major problem there is the builder doesent have Occupation Certificate from TMC (Thane Municipal corp.) therfore it is very difficult process of loan from bank we are facing. So i want to ask that what is the other way of getting loan from bank without OC.

  18. I had a question regarding occupancy certificate.
    I am in talks with a person to purchase a resale flat which is 4 yrs old.
    He provided the documents required & he mentioned the fact that he is not having the occupancy certificate from BBMP. Actually the Builder didnt provide him.
    Despite repeated questioning by the person to builder , the builder did not give a clear reason as to why he is not obtained OC from BBMP.
    what are the problems that I could face down the road if I dont have an OC and Im purchasing the apartment?

  19. Hi ,going to buy a flat ,advance is paid , loan is santind, builder is saying there is no OC , as it is bbmp approved so there will be
    possioning letter from the builder .pl suggest.

  20. I had a question regarding occupancy certificate.
    I am in talks with a person to purchase a resale flat in bangalore which is 4 yrs old.
    He provided the documents required & he mentioned the fact that he is not having the occupancy certificate from BBMP. Actually the Builder didnt provide him.
    Despite repeated questioning by the person to builder , the builder did not give a clear reason as to why he is not obtained OC from BBMP.
    what are the problems that I could face down the road if I dont have an OC and Im purchasing the apartment

  21. i had a question regarding occupancy certificate. 
    i have zeroed down on a resale flat in one of the good complex in mumbai. it is a big complex with 8 towers of 15 floors each. The 4 towers in the building have got an OC and the remaining 4 does not have an OC. It is with the builder and society isnt formed yet. The owner n agent say the formation is being done one by one for the towers. the loan would be available and the water supply is there 24 hrs from the BMC. I want to know what problems i could face i i dont get an OC and go ahead in purchasing the apartment. Please let me know at the earliest as your suggestions / advice would help me. 

  22. I am purchasing a falt in Bhayander which is not having OC.Please suggest shall I purchase it without OC as I am getting loan on it as the previous purchaser had loan on it from canara Bank.
    Aslo the flat is in my budget so si the need to buy it but on teh other way Oc is not there so the confusion that government may demolish it in future.
    Please respond its urgent as I have to give token in 24-48 hrs.

  23. I am planning to buy an apartment in marthahalli…but flat which i am planning to buy is not thr in the master layout plan for that apartment.. is it a legal or will thr be any problem if i buy that .. please help

  24. I had seen one property near Dahisar West. Building has 4 Wings (A, B, C, D). Building is 10years old. Wing A, B, C have OC and other document clear. Also Society is formed. However Wing D has still not got the OC to any of the Flat. . i want to purchase a flat in bldg D please suggest

  25. i have booked a flat in thakurli under happy home developers. But the builder says he will not give oc as kalyan dombivili mahanagar palika does not give oc to builders after year 2000. is it true that oc is not given by kdmc. please let me know the details

  26. Hi, I have been told by the bulder that 15meters and below apartments in bangalore as per BBMP doesnot require OC. Is that true? If so where can I find the bye-laws ? I visited BBMP office to check out but found nothing like that.. Any one have that kind of information?

  27. i purchased 16 years old flat in kharegoan, kalwa & i paid 50% to seller now for balance payment o approached to banks but they are asking for oc. but oc is not available at seller. What should i do. plz help me for any soln or can i get full money back which i paid to seller.

  28. I intend purchasing a flat on the sixth floor of an 8 stories building. Apparently the builder claims to have the OC for the building . However I was informed by the catholic society of the entire area that the 7&8 floor are illegally built and they have taken the builder to court ,which they claim that the top floors will be demolished soon . Fail to understand if the top two floors are illegal how is the OC given to the builder and is it advisable to purchase the flat in the said building?

  29. My society which is Andheri (East) still does not have an OC for the last 20 years. The builder is dilydallying the issue since the past several years. I have sent an RTI application to the BMC (K/E ward), but received a reply stating quote “Under RTI act 2005 it is expected that information sought is in the form of copies of the documents, file papers available with this office. It seems I am seeking opinion of the Public Information officer which is not covered. I feel The statement made by the Asst.Engineer (PIO) is very incorrect as they are trying to mislead the RTI query asked from them. Please advice how to go about it . Your valuable advice will be of immense help to me in taking up the matter once again with the BMC regardng our building’s OC.

  30. 1. Kindly, confirm whether the society has been formed or not, if the society has been formed then provide the copy of Share certificate along with reverse side.

  31. Some Bldg having Elect,Water but they don’t have OC so how i can get the oc give me solution in this matter or without OC is this poosbile to purchase the ftat pls give me advice which problem to be faced after that

  32. that is true that occupancy certificate is one the essential legal document for a builder , individual or any property holder as it is the evidence of completion of building as per plan. however there are many such property holders who dont have such a certificate and get all rights related to property.

  33. my building(cooperative housing society) has occupancy certificate (pune camp)..people are staying since last 30 years.we our society does not have completion certificate.builder is refusing to give did he obtain occupancy certificate?.

  34. Dear Sir / Madam, we are paling buy a flat which is 1 Bhk, but that is Gowthan property, Flat has water & Elecrticity connection,but there is no CC & OC…My question is shall we buy that property ?? will there be a problem in the future?? please help me out….

  35. Kindly advice if a society is formed and possession is given to flat owners since 3yrs and building is complete since 5 years  but OC and CC is not there , should one buy a resale property , also which properties are legal / illegal in Royal Palms , Goregaon East , Mumbai .
    If a building is underconstruction and possession 1 year and it is a investors resale flat , there is no oc cc  or  society formed then which documents to check before buying , pls advice on mail , how to insure u are investing in a property which will get OC since u  pay the builder in advance and on completion there is a nominal amount remaining , so how does one analyse.thank you .please do respond

  36. There is another angle why Builders avoid taking OC. There is rampant corruption in Municipal body. Despite giving bribes in millions of Rupees, they harass the applicants and after frustrations they give up. Who will bell the cat? Well no one is interested and one day like Delhi and Ullhasnagar, all the legal/illegal buildings will be cleared by the politicians at the time of elections. SC has ruled that on humanitarian ground,, water and electricity will have to be provided and some or the banks are too happy to grant loans. So happy living till that time.

  37. We are buying an apartment at SAI KSD SERENITY near hoodi circle.we have already paid 20% and remaining 80% yet to be paid.We came to know that ,we are not going to recieve OC from builder.
    Could you please let us know ,shall we go ahead with buying that apartment or not

  38. My name is sharad joshi . i am planning to buy a flat in old building which constructed in the year 1970 .there was a promoter who incorporate the societyin 1965 and owner of the flat is member of that society .promoter given contract to national consturction co to consturct the buling of the society .
    but due to delay in possession and Conractor dispute with promoter member forcefully taken possession of flat . they have Conveyance certificate in the name of society but they don’t have OC from BMC .document owner providing is NOC from society , Share certificate and muncipal tax assessment for the previous year and for the yer 1995-96 , certificate from registrar of society for survey .he is ready to prepare indemnity bond , sale deed and ready to issue public notice .i am concered about OC .

  39. In simple terms OC or occupancy certificate is an evidence that the building is ready to occupy.
    The occupancy certificate is very important document and  it is given to the owner once the building is completed mentioning that the property is ready to occupy. Most of the financial institutions also demand this certificate before sanctioning home or mortgage loan. So if you are applying for Home Loan, check out list of documents like oc, cc, plan copy, 7×12 extract, builder credentials etc.
    For more such Loan & Real estate tips visit:

  40. i am planning to purchase flat at nalasopara west under low income group but building had not got oc and also not having water connection. is it favourable to purchase the flat under such circumstances. pl reply fast its very urgent

  41. Please guide  regarding 15 year old building with 850 sq ft flat with partial OC in Thane.
    Can i purchase it? what are the possible consequences if there is partial OC for  buying resale flat.
    Please help & guide .

  42. i would like to purchase flat in Mahada develop property and would like to apply loan and they ask for OC/CC/Blue print where i can get this documents whether from Mahada Office or society

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