Homebuyers should reject possession without OC, seek legal recourse

The National Consumer Disputes Redressal Commission (NCDRC) has held Faridabad-based Hamilton Heights liable for deficiency in service and unfair trade practice for handing over possession of a flat without securing the occupancy certificate (OC).

- SANJEEV SINHA

The case underscores the need for buyers to ensure the builder has obtained the OC.

What is an OC?

An OC issued by the planning authority confirms that a building complies with approved plans. In Gurugram, for instance, it is issued by the Department of Town and Country Planning (DTCP) or the Municipal Corporation of Gurugram.

"For homebuyers, it serves as proof that the property is legally habitable," says Pradeep Mishra, chairman and managing director, ORAM Developments.

Taking possession without an OC can lead to legal complications, denial of utilities such as water and electricity, hurdles in availing home loans or reselling the property, and even eviction. Under the Real Estate (Regulation and Development) Act, 2016 (RERA), it is illegal for builders to deliver possession without an OC.