Builder's Failure To Obtain Occupation Certificate Under Consumer Act
Real Estate

Builder's Failure To Obtain Occupation Certificate Under Consumer Act

A builder's failure to obtain an occupation certificate is a deficiency in service under the Consumer Protection Act of 1988, according to the Supreme Court.

The bench comprising Justices DY Chandrachud and AS Bopanna observed that the flat purchasers are well within their rights as consumers to seek compensation as recompense for the owners' subsequent liability, such as payment of higher taxes and water charges, arising from the lack of an occupancy certificate.

Samruddhi Co-operative Housing Society Ltd filed a complaint, in this case, seeking a refund of the excess taxes and charges paid to the municipal authorities as a result of the builder, Mumbai Mahalaxmi Construction Pvt Limited, allegedly failing to provide adequate service.

The complainant claimed that because the builder failed to obtain an occupancy certificate, its members had to pay a 25% higher property tax and an additional 50% toward water charges as a result of the builder's failure to obtain an occupancy certificate.

The complaint was dismissed by the National Consumer Disputes Redressal Commission (NCDRC) because it was barred by limitation and was not maintainable because it was like a recovery proceeding rather than a consumer dispute.

According to NCDRC, the Housing Society is not a consumer under the Consumer Protection Act because it has sought reimbursement from the builder for higher charges paid to the municipal authorities.

India's National Consumer Disputes Redressal Commission (NCDRC) is a quasi-judicial body established in 1988 under the Consumer Protection Act of 1986. Its headquarters are in New Delhi. The commission is led by a Supreme Court of India judge who is either currently serving or has recently retired.

Image Source

A builder's failure to obtain an occupation certificate is a deficiency in service under the Consumer Protection Act of 1988, according to the Supreme Court. The bench comprising Justices DY Chandrachud and AS Bopanna observed that the flat purchasers are well within their rights as consumers to seek compensation as recompense for the owners' subsequent liability, such as payment of higher taxes and water charges, arising from the lack of an occupancy certificate. Samruddhi Co-operative Housing Society Ltd filed a complaint, in this case, seeking a refund of the excess taxes and charges paid to the municipal authorities as a result of the builder, Mumbai Mahalaxmi Construction Pvt Limited, allegedly failing to provide adequate service. The complainant claimed that because the builder failed to obtain an occupancy certificate, its members had to pay a 25% higher property tax and an additional 50% toward water charges as a result of the builder's failure to obtain an occupancy certificate. The complaint was dismissed by the National Consumer Disputes Redressal Commission (NCDRC) because it was barred by limitation and was not maintainable because it was like a recovery proceeding rather than a consumer dispute. According to NCDRC, the Housing Society is not a consumer under the Consumer Protection Act because it has sought reimbursement from the builder for higher charges paid to the municipal authorities. India's National Consumer Disputes Redressal Commission (NCDRC) is a quasi-judicial body established in 1988 under the Consumer Protection Act of 1986. Its headquarters are in New Delhi. The commission is led by a Supreme Court of India judge who is either currently serving or has recently retired. Image Source

Next Story
Real Estate

DRA Enters Rs 5 Billion Club, Redefines Chennai’s Housing Growth

DRA has become the fastest real estate developer in Chennai to cross the Rs 5 billion mark, clocking Rs 5.25 billion in revenue in FY 2024–25. This milestone marks the launch of DRA 2.0, its next growth phase, focused on tech-enabled, customer-first development rooted in local insight.To mark the achievement, DRA held a celebratory event with employees, customers, and stakeholders. Ranjeeth Rathod, Managing Director, presented the milestone, followed by a keynote from Yubi CEO Gaurav Kumar on innovation and trust.“Crossing the Rs 5.25 billion mark isn’t just a financial milestone – itâ..

Next Story
Infrastructure Transport

Servotech wins 4.1 MW solar order from East Coast Railway

Servotech Renewable Power System Ltd. (NSE: SERVOTECH) has secured a Rs 15.8 crore order to set up a 4.1 MW on-grid rooftop solar project for the Waltair Division of East Coast Railway, Visakhapatnam. The contract includes the design, supply, installation, and commissioning of solar PV plants at various locations across the division.The order aligns with Indian Railways’ broader mission to decarbonise operations by integrating renewable energy. Under this initiative, Servotech will deploy solar photovoltaic systems of varying capacities to support energy-efficient rail infrastructure.“We a..

Next Story
Real Estate

Realsee backs FIDOVN's VR-powered real estate leap in Vietnam

Realsee has partnered with Vietnam-based proptech platform FIDOVN to usher in a new era of virtual reality (VR)-driven real estate experiences in Southeast Asia. Backed by Realsee’s 3D reconstruction and spatial digitisation tech, FIDOVN has built the region’s first VR+AI+Data Hub OMO ecosystem—transforming how properties are marketed and sold in a post-pandemic, digital-first world.Powered by Realsee’s Galois 3D LiDAR Camera and G1 Smart Phone Gimbal, FIDOVN has digitised over 10,000 properties. Its interactive, immersive experiences allow prospective buyers to navigate listings remot..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?