Building Occupied Before RERA, Need No Registration

RERA
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Yes read it correct, if a building is occupied, but doesn’t have an OC, then it need not register under RERA. Ajoy Mehta, the new chairperson of MahaRERA passed an order, read to know why he said so.

By Varun Singh

On March 18, Ajoy Mehta, the newly appointed Chairperson of MahaRERA passed an order.

The complaint pertained to non-regishation of the building named Shreepati Jewels- Ruby, A- Wing, situated at Girgaon, Mumbai.

The Complainant’s contention was that though the building is complete and occupied since the developer has failed to procure the Occupancy Certificate (OC) from the concerned planning authority, till date, it should be treated as an ongoing project, for which the developer has failed to register the proiect in accordance with the provisions of Real Estate (Regulation & Development) Act 2016 (RERA). Therefore, the complainant prayed that appropriate directions be issued to register the project.

The Complainant submitted that the project has has neither received OC or CC and the proiect is also not registered with MahaRERA. Further, he stated that he is facing hardships cause of non-registration of the said project and has to pay higher taxes.

During the hearing, the developer submitted that though he had applied for part OC, the Competent Plarming Authority has not granted the OC due to some illegal construction caried out by some of the member occupants of the society.

Developer further submitted that he is making efforts to obtain the OC from the Competent Planning Authority. He alsot submitted that the said building is completed and occupied from the year 2008 much prior to RERA coming into the force.

Further, he submitted that he endeavours to regularise the violations and obtain the occupation certificate for the same at the earliest. He argued that the said building does not come under ambit of the provisions of RERA.

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Mehta in his order noted, “In accordance with the provisions of Section 3 of the said Act, the promoters are under obligation not to advertise, market book or offer for sale or invite in any manner apartment or building, as the case may be without registering the Real Estate Project with the Real Estate Regulatory Authority under the provisions of the said Act. Provided that projects that are ongoing on the date of commencement of the said Act and for which completion certificate has not been issued, promoter shall make application for registation within a period of three months from the date of commencement of the said Act.”

In this case it was noted that the Promoter has physically completed the development of the building as mandated by the competent planning authority prior to the commencement of the said Act and thereafter has also handed over the apartments to the allottees. Consequently, the project has become an occupied building.

Mehta further said in his order, “The building cannot be treated as an ongoing proiect in accordance with Section 3 of RERA, which requires two conditions to be fulfilled i.e. proiect work has to be ongoing on the date of commencement of the Act and for which completion certificate has not been issued.”

The order further stated, though it is a fact that the building has failed to obtain occupanry certificate, keeping in view the objective of the Act of completing project work and handing over possession, such buildings of the past which have been occupied prior to the coming into effect of the Act but which do not have completion or occupancy certificate, should not be brought under the ambit of the Act and should not be directed to register merely to obtain OC.

Therefore, no directions can be issued to the Promoter to register the said project as per the relevant provisions of the said Act (RERA).

Ajoy Mehta, Chairperson, MahaRERA

MahaRERA further said that the Complainant has the liberty to raise the same in an appropriate forum.

Also Read: Parking Issue: Shift The Wall Orders MahaRERA

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