Builder liable to pay damages for occupation certificate delay: SC

Public Lokpal
January 12, 2022

Builder liable to pay damages for occupation certificate delay: SC


NEW DELHI: In a aid to homebuyers who’re pressured to take possession of their flats and begin residing as a result of delay on a part of the builder to get all clearances from the authorities, the Supreme Courtroom on Tuesday held that it could quantity to deficiency in providers on the a part of actual property firm if it did not get occupation certificates and homebuyers might search compensation.

A bench of Justices D Y Chandrachud and A S Bopanna stated builders can be liable to refund the cash if the homebuyers have been pressured to pay greater taxes and water prices arising from the shortage of an occupancy certificates. It put aside the order of the Nationwide Client Disputes Redressal Fee which had turned down homebuyers’ plea in opposition to a builder and held they need to strategy in opposition to the authorities that are charging greater taxes.

The SC handed the order on a plea of Mumbai-based Samruddhi Co-operative Housing Society Ltd. Advocate Sunil Fernandes stated homebuyers have been residing within the society for 25 years with out occupation certificates and needed to pay 25% greater property taxes and 50% greater water prices. The builder stated the plea was barred by limitation as the reason for motion arose in 1997 once they took possession however the grievance was filed 18 years later.