Mumbai, the city of dreams, is home to millions of residents, but surprisingly many of them are living in buildings without occupation certificates (OCs). Yes, you read that right! Over 25,000 buildings in Mumbai lack OCs, rendering their occupants technically unauthorised. This issue has been simmering for years, affecting lakhs of Mumbaikars who have made these buildings their homes.
The reasons behind this predicament are varied. Some buildings were constructed with technical or administrative lapses, while others faced regulatory changes mid-construction. In many cases, developers failed to hand over required spaces, amenities or flats to authorities, leaving residents in limbo. The fault was not of the members but the developers who used the loopholes in the system due to which the residents are suffering. Many schools, hospitals, amenities and other buildings
remained for long without OC.
The absence of OCs not only makes these buildings unauthorised but also poses significant risks to residents, including safety hazards. The property resale value is negatively affected, as many buyers are reluctant to purchase a property without the legally required documents, due to which the societies also face issue of Deemed
conveyance.
The Maharashtra government led by Devendra Fadnavis has finally taken notice of this issue. A new policy is set to roll out, aiming to regularise these buildings and grant OCs to residents. This move is expected to bring relief to millions of Mumbaikars who have been living in uncertainty. The policy will allow buildings to apply for OCs online, with no penalty if done within the first six months. However, premiums will apply in cases involving excess FSI usage.
Key aspects of the policy include:
Members who have included non-FSI areas within their flats will be regularised upon payment of a premium which should be less than the Ready Reckoner rate, following submission of an area certificate from an MCGM panel architect. Purchasers of flats on illegal floors will also be required to pay the premium.
The policy targets buildings constructed on the basis of commencement certificates issued till 2012 and completed before 2015 when RERA
(Real Estate Regulation and Development Act) came into effect ensuring stricter compliance. The policy will allow buildings to apply for OCs online, with no penalty if done within the first six months. However, premiums will apply in cases involving excess FSI usage.
Application Process: Housing societies can apply jointly or individually for a part-OC Granting OCs to societies and their members will alleviate tensions, reduce fines and penalties on water charges and property taxes imposed by MCGM (Municipal Corporation of Greater Mumbai), and generate revenue for the civic body. This revenue, amounting to a few crores, can be utilised for enhancing civic amenities.
The urgency of this issue is underscored by instances where residents have faced severe consequences due to lack of OCs. The Bombay High Court recently imposed a fine of ₹50 lakhs on a member for renting out premises to a bank in a redevelopment building on MHADA land without an OC, raising questions about fairness and residents' rights. In another case, residents of a high-end society in Tardeo were compelled to vacate their homes due to a Bombay High Court order, despite their genuine grievances.
Why should innocent residents suffer due to the builders' fault? The right to shelter is a fundamental right, and granting OCs to societies is a step towards ensuring this right is upheld. By regularising these buildings, the government can ensure safety,
security, and dignity for residents, while promoting urban development and growth.
While this new policy is a welcome move, it has sparked debate about fairness. Some residents who went through the arduous process of securing OCs earlier may feel short-changed. Critics argue that this policy risks creating a perception of injustice among law-abiding citizens. However, officials believe that this policy will provide much-needed legal recognition and relief to thousands of homeowners.
Once this OC policy is implemented it will benefit the residents, relief from
uncertainty and unauthorized occupancy status, reduced fines and penalties on water charges and property taxes, improved safety and security, easier selling and mortgaging of properties, and housing societies will be able to apply for deemed conveyance. At a time when Mumbai is seeing rapid redevelopment, the grant of OC will accelerate this process, saving societies from facing issues that might otherwise render them helpless.
In conclusion, Mumbai's buildings without OCs are a ticking time bomb, posing significant risks to residents and the city's development. The new policy is a step in the right direction, but its implementation will require careful consideration and monitoring. As Mumbai continues to grow and evolve, addressing this issue will be crucial to ensuring Mumbai’s future is safe, secure, and prosperous for all its residents.
(The author is a practising advocate on the committee appointed by the state government on the OC issue)
