All buildings which have not got OC will have to take license from RERA

law1By Dr Sanjay Chaturvedi, LLB, PhD

Accommodation Times News Services

Under Real Estate (Regulation and Development) Act 2016, it is mandatory to register all ongoing real estate projects. Let us understand the provisions of the new Act. The Act will regulate all real estate development process and real estate transaction process in the country. The Act came into force from 1st May 2016.

Though housing is a state subject, new Act wants all state to establish Real Estate Regulatory Authority.  According to Sec 20 (1)  after the establishment of the Authority, which will be within one year from date of commencement (1st May 2016) all new and ongoing projects will have to register with the Authority within three months. The relevant section says :

3. (1) No promoter shall advertise, market, book, sell or offer for sale, or invite persons

to purchase in any manner any plot, apartment or building, as the case may be, in any real

estate project or part of it, in any planning area, without registering the real estate project

with the Real Estate Regulatory Authority established under this Act:

Provided that projects that are ongoing on the date of commencement of this Act and

for which the completion certificate has not been issued, the promoter shall make an application

to the Authority for registration of the said project within a period of three months from the

date of commencement of this Act:

Now , the problem is hundreds and thousands of buildings do not Occupation Certificate. Once the Commencement Certificate along with IOD (Intimation of Disapproval) is granted the project is treated as under construction. Even after ten or fifteen years, the building is occupied, many transaction take place and housing finance availed but the building is not finished in the eye of law unless it gets Occupation Certificate (OC) or Building Completion Certificate (BCC) whichever is applicable.

All estate agents who sell flats in these buildings will also be liable to penalties imposed under the Act because the Act says in Sec 10 no broker should facilitate any sale in projects which do not have license or approval from RERA Authority. Any building which not got OC is under construction and all under construction buildings must be registered with RERA. If there is no license to the building or OC then all those who are instrumental will be liable for punishment which could be imprisonment and fine.

All builders who have not got the OC for their property need to register it with authority. One cannot run away with this provision as Authority are tracing unscrupulous builders who do not complete projects. Thousands of buildings in Mumbai, Pune, Bangalore, Delhi and elsewhere in the country have not got OC since last 15 to 20 years. All these buildings will have to be registered under the authority as under construction projects and builders will have to bring in OC. If not then no broker or no buyer will purchase properties without OC.

All the occupants of such building will have trace builders to get them OC or file consumer complaint against builders or start the process of getting OC of their own which requires huge capital and penalties.

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