Bought a Mumbai flat without an Occupancy Certificate? New plan to help 12 lakh homeowners

As many as 25,000 properties in Mumbai will fall into this ambit.

The amnesty scheme will benefit 12 lakh Mumbaikars (Gemini-generated image)

The scheme also proposes a 50 per cent concession on various charges, including regulation fees, penalties, and application costs. The property tax on those carrying an OC would be calculated on the BMC’s specified rates.

At present, residential buildings, hospitals and schools will be included in this scheme.

Civic authorities have maintained that a policy is being chalked out to include commercial buildings in the amnesty scheme.

The amnesty scheme was cleared in April this year. Before that, in December last year, the state government’s urban development department (UDD) had passed a policy to grant OC to all the residential buildings in the state.

The idea of this amnesty scheme was first mooted in 2018. The proposal will be formally implemented through ward offices in the next few weeks.

How does no-OC affect citizens?

Living in a building without a valid OC can leave people vulnerable to being labelled as “illegal encroachers”. Moreover, a property without a valid OC is not eligible for registration, posing hurdles when owners seek to resell them.

Banks and financial institutions also hesitate to grant home loans to buyers planning to acquire properties lacking OCs.

Then comes the cost of water and sewage services. The Mumbai civic body usually supplies water and other services to these properties at a higher cost. They also hold the right to disconnect these services without prior intimation. Property tax on these buildings is also higher than usual rates.

Is an Occupational Certificate important?

Issued by the civic authorities, an OC is a legal document that certifies that a building is fit for human occupancy. Any building, be it residential, commercial, school or hospital, would require an OC. It proves that the building was constructed according to an approved plan.

If one doesn’t have an OC, the building is deemed illegal for human occupancy, giving the civic body the right to evict the premises and cut the water and electricity supply.

How are the OCs issued? 

The builder first has to apply for an Occupational Certificate for a newly constructed property, followed by an audit by the civic authorities and local fire brigade officials to ensure the building follows structural and safety guidelines. The certificate is issued if the building is found to be compliant.

Why don’t 25,000 Mumbai properties have OCs?

Thousands of buildings in Mumbai do not have Occupational Certificates because builders do not complete legal procedures before selling them to desperate buyers, tempting them with ‘early moving in’ offers.

Apart from this, several builders do not apply for an OC to avoid detection of unauthorised deviations from their BMC DP cell-approved original plan. Some who fail to clear mandatory safety and fire clearances also fail to secure one.