Occupancy Certificate
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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has recently announced a directive that requires builders to obtain an Occupancy Certificate (OC) or Completion Certificate (CC) before issuing possession letters to homebuyers. While the intention behind this move is to protect homebuyers from the arbitrariness of promoters, it has sparked concerns among various stakeholders, particularly in Noida and Greater Noida.

UP RERA’s Directive and Its Implications

Announced on June 8, the UP RERA’s directive aims to resolve disputes between promoters and flat buyers. However, its blanket application to both new and old projects has raised concerns. Dinesh Gupta, Secretary of CREDAI Western Uttar Pradesh, expressed apprehensions about the directive’s implications, especially for projects nearing completion but yet to receive OCs from local authorities.

Gupta suggested that a distinction should have been made between new projects and those already mired in delays. The concern is that the directive could adversely affect homebuyers who have invested in long-delayed projects.

Homebuyers’ Associations Voice Concerns

Abhishek Kumar, President of the Noida Extension Flat Owners Welfare Association (NEFOWA), criticized UP RERA’s approach as lacking consideration for the ground realities faced by homebuyers in stuck projects. Kumar pointed out that for these buyers, particularly end-users, the ruling compounds their financial woes by forcing them to pay both EMIs and rent simultaneously.

Kumar acknowledged that the rule could be a significant step forward for new projects where transactions have been fully settled with authorities. However, he argued that it fails to address the complexities surrounding delayed or incomplete projects due to issues with builders.

Clarifications and Provisions

In response to the concerns raised, UP RERA Chairman Sanjay Bhoosreddy clarified that the directive aims to eliminate confusion among allottees caused by promoters’ use of misleading terms in possession offers. He emphasized that offers of possession should solely signify readiness for handover.

CREDAI office-bearers referenced a 2017 provision by UP RERA for a deemed OC, which allowed for possession in projects that had secured critical NOCs for fire safety, electricity, lifts, and finance. Suresh Garg, Vice President of CREDAI Western UP, noted that builders typically issue a final demand letter after obtaining an OC or deemed OC as per their agreement with buyers. Garg stressed the importance of clear communication from builders regarding possession dates to prevent confusion among homebuyers.


The ongoing debate underscores the need for a balanced approach that safeguards homebuyer interests without stalling the progress of real estate projects due to bureaucratic hurdles. As stakeholders navigate these regulations, the focus remains on finding solutions that address both consumer protection and project completion challenges.

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