No Loans, Electricity, Water and Sewerage Connections for Buildings

Banks and financial institutions can’t sanction loans against any building as a security without verifying the completion/occupation certificate issued to the building and electricity, water and sewerage connections shall be given by service providers to buildings only after production of such a certificate, the Supreme Court has ordered. Issuing pan-India guidelines “in the larger public interest” to check illegal constructions, a Bench of Justice JB Pardiwala and Justice R Madhvan said, “No permission/licence to conduct any business/trade must be given by any authorities including local bodies of states/Union Territories in any unauthorised building irrespective of it being residential or commercial building.” It said the builder/applicant has to give an undertaking to the effect that possession of the building will be handed over to the owners/beneficiaries only after obtaining completion/occupation certificate from the authorities concerned. “Unauthorised constructions, apart from posing a threat to the life of the occupants and the citizens living nearby, also have an effect on resources like electricity, ground water and access to roads, which are primarily designed to be made available in orderly development and authorised activities,” it said, upholding an Allahabad High Court’s December 2014 order for demolition of certain illegal constructions in Meerut. Noting that unauthorised constructions have to be curtailed with an iron hand and any lenience would amount to showing misplaced sympathy to them, the Bench said violation of any of these directions would lead to initiation of contempt proceedings in addition to the prosecution under respective laws. “We are of the opinion that construction(s) put up in violation of or deviation from the building plan approved by the local authority and the constructions which are audaciously put up without any building planning approval, cannot be encouraged. Each and every construction must be made scrupulously following and strictly adhering to the Rules,” the Bench said. Officers responsible for issuance of wrongful completion/occupation certificate shall be proceeded departmentally forthwith, it said. Writing the judgment for the Bench, Justice Madhavan made it clear that “delay in directing rectification of illegalities, administrative failure, regulatory inefficiency, cost of construction and investment, negligence and laxity on the part of the authorities concerned in performing their obligation(s) under the Act, cannot be used as a shield to defend action taken against the illegal/unauthorised constructions”.

Related Stories

FM Announces Restoration of Rs 220 Billion in Properties to Banks

Properties of Vijay Mallya have been given to public sector banks.

Security solutions: Godrej aims for 50 percent revenue surge

Security solutions: Godrej aims for 50 percent revenue surge

BFSI office leasing continues to surge as digital growth points

The BFSI sector's share in office leasing has increased from an average of around 11%.