Withdraw from project, claim refund with interest

The National Consumer Disputes Redressal Commission (NCDRC) ruled in a recent case that offering possession of an apartment without an occupancy certificate (OC) does not constitute a legal offer.

- SANJEEV SINHA

It reaffirmed homebuyers' right to seek refunds in delayed housing projects.

Significance of OC

An OC is the final approval from local authorities confirming that a building complies with sanctioned plans and safety norms, making it legally fit for occupation.

"For homebuyers, the OC is not just an administrative formality but the very basis of lawful possession. Without it, the property is deemed unauthorised, exposing buyers to risks such as eviction, denial of utilities, or even demolition," says Shankey Agrawal, partner, BMR Legal.

Difference between CC and OC

While both are legal documents, they serve distinct purposes in a real estate project. A completion certificate (CC) confirms that construction has been completed in accordance with the sanctioned plan.

"An OC follows the CC, certifying that the building is fit for habitation and equipped with all necessary civic amenities," says Darshana Velani, principal associate, IndiaLaw LLP.

Who provides the OC