+
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

Heena Lalwani Buys Rs 1.13 Billion Juhu Apartment

Heena Lalwani, promoter of Aatman Innovations Private Limited, has purchased a luxury apartment worth Rs 1.13 billion in Mumbai’s upscale Juhu locality, according to property registration documents accessed by Zapkey.com.The 9,862 sq ft apartment, located on the 10th floor of Lodha Developers’ Avalon Tower, was acquired at Rs 115,000 per sq ft and comes with five car parking spaces. The deal, registered on 18 August 2025, also included the payment of Rs 68 million in stamp duty and a Rs 30,000 registration fee.Lodha Developers did not respond to queries regarding the transaction, while the..

Next Story
Real Estate

Godrej Buys KPHB Land for Rs 7 Billion in E-Auction

An acre of prime land in Kukatpally Housing Board (KPHB), Hyderabad, was auctioned for Rs 7 billion, with the Telangana Housing Board generating Rs 5.47 billion from the sale of 7.8 acres through e-auction on 20 August 2025.The auction notification was issued last month, attracting bids from Godrej Properties, Aurobindo Realty, Prestige Estates, and Ashoka Builders, according to Board vice-chairman V.P. Gautham. With an offset price of Rs 4 billion per acre, the three-hour auction saw 46 bid increases, before Godrej Properties acquired the land.Revenue generated from the auction will be utilis..

Next Story
Real Estate

HMDA to Auction 93 Prime Plots in September

The Hyderabad Metropolitan Development Authority (HMDA) is preparing to conduct a three-day auction of prime open plots across Hyderabad, Rangareddy, and Medchal-Malkajgiri districts this September.According to official reports, the e-auction will take place on 17, 18, and 19 September, offering 93 plots. Of these, 70 are located in the Bachupally HMDA layout, with the remainder spread across Turkayamjal, Kokapet, Poppalguda, Chandanagar, Bairagiguda, Gandi Maisamma, Suraram, Medipally, and Bachupally village.The highest upset price has been fixed at Rs 175,000 per square yard for a land parce..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?