Developers can't deliver project without completion & legal firefighting certificates: SC orders

In order to assist the new home buyers the Supreme Court ordered that, if a real estate developer offers possession of a flat to a buyer without completion and firefighting clearance certificates, it would not only be illegal but would amount to deficiency in service under the Consumer Protection Act.

It also declared that, the buyers can refuse to take the home , as they are not compelled to take the possession in such circumstances.

The SC orders that, if any issue occurs the legal experts, will help to settle the issue in favour of the home buyer by making the developer responsible and duty bound to obtain necessary certificates such as occupancy and/or completion certificate and firefighting clearance certificate before offering possession of a flat to a home buyer. 

The buyers can refuse incomplete and unsafe home anytime and can compel the builders to adhere to legal safety standards before offering handover of the flats, the order says.

It’s noteworthy that in Noida and Greater Noida, many buyers took possession after signing a fit-out possession agreement, despite not having an occupancy certificate. The fit-out possession letter usually states that the builder has applied for the occupancy certificate and allows buyers to take possession for interior work or fit-outs.

In a recent ruling in Dharmendra Sharma v. Agra Development Authority, the Supreme Court firmly stated that a real estate developer's offer for a homebuyer to take possession of a flat without a completion certificate and firefighting clearance certificate is not valid. The court deemed the absence of these certificates as a deficiency in service.

The order expessed, despite the appellant's repeated requests, ADA (Agra Development Authority) failed to produce these certificates, rendering its offer of possession incomplete and legally invalid.”

Gauri Jagtap Associate Partner, King Stubb & Kasiva, Advocates and Attorneys said that, buyers have the right to demand a valid Completion Certificate and Fire Safety Certificate before taking possession of a property. Under Section 4(5) of the UP Apartment Act, 2010, and Section 19(10) of the RERA Act, 2016, developers are required to obtain these certificates, ensuring the property is safe for occupancy.

She also insisted that, homebuyers should insist on Completion and Fire Safety Certificates to ensure compliance with building regulations and safety standards. Though obtaining these may cost builders time and money, they are crucial for the property's structural integrity and safety. Buyers must request these documents during due diligence. By adhering to these legal requirements, developers fulfill their obligations and help create a safer living environment. This judgment offers relief to buyers and discourages builders from neglecting their responsibilities.