Published On: Fri, Jul 28th, 2017

RERA: Why change from CC to OC is bothering Gurugram, Noida buyers

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By Accommodation Times Bureau

Occupancy and completion certificates, two words that have forever been part of the real estate lexicon, have suddenly become keywords in deciding who Rera benefits most.

All housing projects completed and delivered in Gurgaon have occupancy certificates, or OCs, but none has a completion certificate, a CC. There is a big difference between the two, particularly for those who have booked flats in condominiums.

The central Rera — or Real Estate (Regulation and Development) Act — was notified on May 1 and stipulated that housing projects that have received a CC before that would not be under the law’s purview. But both Haryana and Uttar Pradesh have changed it to OC.

Buyers are calling this a big dilution of the law but, given the situation in Gurgaon where no housing project has received a CC, government officials said there was no other way forward.

Conditions for getting an OC are far less stringent than those for receiving a CC. In case of a condominium, a single tower out of, say, 10 can get an OC even if work on the others in on. Unavailability of a government power connection or sewage treatment facilities also do not come in the way of an OC. The basis for granting an OC is the building plan.

However, a CC is only granted after all licence commitments are fulfilled by a developer and after completion of all amenities and formation of an RWA. Only one CC is issued for a project. But several OCs can be issued, which are also described as part-completion.

“To get an OC, a particular tower or block needs to be constructed according to the building plan, should have a lift, electricity (not necessarily from DHBVN) and a no-objection certificate from the fire department,” said Rajeev Jha, who is associated with a real estate company.

CCs are also not sought because one of the conditions is that all dues must be cleared. “Maintenance has also emerged as a source of revenue for many developers, so they are not interested in handing it over to the RWA, which is mandatory for getting CC. Once a project gets CC, a developer has no role in it,” said Jha.

The department of town and country planning has issued 1,042 licences in Gurgaon since 1981, of which 652 were between 2008 and 2014. In addition, 41 licences have been issued for affordable housing. There are an estimated 1.7 lakh units in Gurgaon (flats/houses) that can be classified as ‘ongoing’ but 90% of them will not come under Rera’s purview.

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