Saturday, October 7, 2023

Who is to be blamed for a delay in the issuance of OC?

 Who is to be blamed for a delay in the issuance of OC?

Developers say that often roadblocks during the sanctioning process by the local authorities cause delays in obtaining Occupancy Certificate

         An Occupancy Certificate commonly known as OC, is one of the key documents that homebuyers need to get possession of their new home.  Unfortunately, this document (or lack thereof) on many occasions has led to a delay in the delivery of the flat.  After all, a delayed OC means delayed possession, making life difficult for the homebuyer, which often leads to a tiff between the homebuyer and developer.

           But what leads to this delay?  Often, the developers lag in completing their paperwork on time or do not stick to the approved plan; this generally is the main cause of a delayed OC.  On the other hand, the bureaucracy and lengthy processes also at times delay the OC.  For instance, a developer recently took legal action against a local government body in Vasai West, Mumbai as the authorities denied him an OC for his project.  The developer had applied for the OC in December 2022, but the authorities withheld giving the OC citing that the developer’s project had not received environmental clearance.  The developer claimed that he had received all the necessary clearances and adhered to all the protocols and regulations.  With no solution in sight, he approached the court, which ultimately ruled in his favour and ordered the authorities to grant OC to the developer’s project as soon as possible.


            “In a few cases, we have seen that the local municipal corporation delays issuing OC for a housing project, even though the developer has all the sanctioned approvals from competent authorities in place.  This causes a lot of hardships to homebuyers who have purchased their homes, and are unable to occupy them.


            It is important to know that local bodies often have their administrative procedures and protocols for reviewing and approving occupancy certificate applications.  “These processes can involve multiple stages, document verifications, inspections, and coordination with various departments.  Delays can occur if there are bottlenecks in these administrative procedures or if there is a backlog of applications to be processed “.


            The bottom line is, sometimes, bureaucracy sets in and the process just takes longer.

But shouldn’t there be an end to this problem?

        “When governing bodies delay granting an OC, developers should actively follow up with the relevant local bodies responsible for issuing the occupancy certificate to enquire about the reasons for the delay, seek clarification on any pending requirements, and request an expedited review of their application.  Developers must find out the specific issues causing the delay to identify any areas of non-compliance or outstanding documentation that need to be addressed.  By understanding the concerns, developers can take appropriate measures to rectify them ”.


        An open dialogue with the homebuyers and keeping them updated about the delay, the cause, and the steps taken, are equally important.  This helps gain the buyers trust and not cause panic.


       Such instances usually result in court cases where the developer challenges the decision of the local body in a court of law.  And while this entire ordeal takes place, it is the homebuyers who suffer the most due to the added delay in time, which is why keeping the buyer informed and updated is crucial.  “But let’s not cause panic; homebuyers should know that such delays do not happen often and the OC generally comes on time.  But there are a few instances when such delays occur on totally untenable grounds.  Due to these hindrances, developers incur huge losses as well ”.


Here’s how to safeguard yourself

        While this happens, homebuyers can get compensated for the delayed time.  “ Ideally, the homebuyers should be compensated by developers in case there is a delay or if there is anything amiss in the entire process of property buying, including obtaining the OC”.


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