Developers & Homebuyers vehemently disagrees UPRERA's rule regarding OC & CC

UPRERA is its recent circulatory orders disallowed giving possession to homebuyers in the completed housing projects without occupancy or completion certificate. The real estate and the homebuyers of the state did not accept this new rule.During 2017, RERA had allowed possession of a housing project having four key no objection certificates (NOCs) including fire, finance, lift and others.

The developers and homebuyers have objected to RERA’s move of issuing the model format of offering possession. The president of Noida Extension flat owners welfare association, Abhishek Kumar noted, “In the old legacy stalled housing projects, where the developer is failing to pay the land cost dues and not coming forward to obtain OC in view of the financial dues for the last many years, the home-buyers are made to suffer.”  

He also explained that, the buyers who are paying monthly installments and living in rents, will suffer a lot if they fail to take the possession in complete housing projects which are having the deemed OC or CC. 

He said that, RERA must withdraw it without delay because in legacy housing projects developers are not able to take final OC. There are numerous of legacy housing projects in which thousands of apartment owners are trapped for many years.

As per the building bylaws, the developer only receives OC after completion of the construction. When RERA noticed that, many developers are failing to get financial dues NOC amid economic crisis, it issued a notification in 2017 that developer can offer the possession without financial dues clearance NOC in a ready housing project having the key NOCs that include fire safety clearance, lift clearance and structure safety clearance.

RERA also told that, it will allowthose developers who have applied for OC or CC but the local authority has not issued. As per the report of RERA, there are 2,000 developers who have registered their 3,649 housing projects on the portal.

The chairman of UPRERA, Sanjay Bhoosreddy said,“Offer of possession should be meant only for the purpose of taking possession. Hence, we have made available a model offer of possession on the portal and any other format of letter will not be valid. This will remove confusion among the stakeholders and help in disposal of disputes related to it. RERA will look into the issues raised by the buyers and realtors and decide the same in future.”