4 min readMumbaiApr 7, 2026 03:35 PM IST
First published on: Apr 7, 2026 at 03:33 PM IST
The Brihanmumbai Municipal Corporation (BMC) is set to present an amnesty proposal to the standing committee Wednesday, aiming to allow the issuance of occupation certificates (OC) for all residential buildings constructed before 2016. After several years of discussions, this initiative is expected to provide relief to around 12 lakh homeowners living in approximately 25,000 residential buildings across Mumbai.
In December last year, the state government’s Urban Development Department (UDD) approved a policy to grant OCs to all residential buildings. According to the BMC’s proposal, this scheme will also extend benefits to schools and hospitals.
What is OC, and why is it important?
An OC is a legal document issued by civic authorities, confirming that a building is suitable for human occupancy. This applies to all types of buildings, including residential, commercial, schools, and hospitals. Before anyone can occupy a building, it must have an OC. Without this certificate, human occupancy is considered illegal, which allows civic authorities to evict occupants or disconnect water and electricity supplies to the premises.
Citizens living in a building without an OC may be categorised as illegal occupants. Additionally, without a valid OC, a building or property cannot be registered, which often leads to significant challenges when residents try to sell their properties. Moreover, banks and financial institutions are usually reluctant to issue home loans for properties that lack an OC.
Meanwhile, because so many buildings in Mumbai don’t have an OC, the BMC has been supplying water and sewage services to them, citing humanitarian reasons. However, the property tax, which is levied on these buildings, is also higher than usual rates.
How is OC being issued?
Once a building is completed, civic authorities, along with local fire brigade officials, conduct an audit to ensure it meets the structural and safety requirements set by the BMC. This audit occurs after the builders apply for an OC. If the building is deemed compliant, the authorities issue the certificate. However, if the inspection results are unsatisfactory, the certificate will be delayed.
Why don’t so many buildings have OC in Mumbai?
The issue of BMC not issuing OC to residential building owners dates back to a decade. The primary reasons so many buildings don’t have an OC are developer deviations from approved plans, unpaid fees, or structural, fire-safety, and technical lapses.
Over time, several real estate developers, builders, and contractors have also initiated the premature sale of possession to avoid funding delays, leaving residents to manage illegal status, pay double property taxes, and face limited infrastructure services. Experts also stated that in Mumbai, nearly 50 per cent of buildings lack an OC.
How will this scheme benefit Mumbai residents?
According to the BMC’s proposal, the new amnesty scheme will allow OCs to be issued for residential buildings occupied by residents prior to November 2016. The scheme also proposes a 50 per cent concession on various charges, including regulatory fees, penalties, and application costs.
Furthermore, the authorities also maintained that fresh applications submitted within six months of the scheme’s rollout will receive a 100 per cent discount on the penalty amount, while those submitted after six months will also receive a concession. At present, alongside residential buildings, hospitals and schools, civic authorities have stated that a policy is being developed to include commercial buildings in this scheme.
According to the BMC's proposal, this scheme will also extend benefits to schools and hospitals (Image generated using AI).
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