Builders cannot ask for maintenance costs from buyers without OC
Real Estate

Builders cannot ask for maintenance costs from buyers without OC

In a relief to homebuyers who are pushed to take possession and start living in their apartments without occupancy certificate (OC) due to delay on the part of builders to get all approvals from the authority, the National Consumer Disputes Redressal Commission (NCDRC) held that builders cannot ask for maintenance charge from the buyers without OC.

The apex consumer forum held that homebuyers would be liable to pay maintenance charges for their apartments only after the builder obtains occupancy certificate from the civic authority, and it is not appropriate for builders to demand it even though the home buyers start residing in their apartments after taking over the ownership.

It said if the builder fails to obtain OC then it means that the project is not yet finished and it would be viewed only as “paper possession” if the flat is handed over to the buyers. The NCDRC permitted a plea of a batch of 15 homebuyers from Benguluru led by Harinder Singh who was compelled by a builder to pay maintenance charges after taking control of their apartments without OC.Their lawyer Chandrachur Bhattacharya claimed before a bench of S M Kanitkar and Binoy Kumar that the buyers were forced to pay two years of maintenance in advance while taking control of the apartments for which the builder failed to obtain OC despite a delay of six years.

Opposing homebuyers’ plea, the builder VDB Whitefield Development Private Ltd argued that maintenance cost was being charged as it was providing all facilities to those who have shifted to their flats. It said that delay in the project was caused because of the Covid-19 pandemic, and it was the buyers who had forced it to give them physical ownership of their units without OC.

However, NCDRC was not convinced with the submission of the builders and permitted the plea of homebuyers by relying upon a recent judgment delivered by the Supreme Court in January and an earlier verdict of the Commission.

Image Source

Also read: Property costs likely to increase by 5-10% in 2022: Anarock

In a relief to homebuyers who are pushed to take possession and start living in their apartments without occupancy certificate (OC) due to delay on the part of builders to get all approvals from the authority, the National Consumer Disputes Redressal Commission (NCDRC) held that builders cannot ask for maintenance charge from the buyers without OC. The apex consumer forum held that homebuyers would be liable to pay maintenance charges for their apartments only after the builder obtains occupancy certificate from the civic authority, and it is not appropriate for builders to demand it even though the home buyers start residing in their apartments after taking over the ownership. It said if the builder fails to obtain OC then it means that the project is not yet finished and it would be viewed only as “paper possession” if the flat is handed over to the buyers. The NCDRC permitted a plea of a batch of 15 homebuyers from Benguluru led by Harinder Singh who was compelled by a builder to pay maintenance charges after taking control of their apartments without OC.Their lawyer Chandrachur Bhattacharya claimed before a bench of S M Kanitkar and Binoy Kumar that the buyers were forced to pay two years of maintenance in advance while taking control of the apartments for which the builder failed to obtain OC despite a delay of six years. Opposing homebuyers’ plea, the builder VDB Whitefield Development Private Ltd argued that maintenance cost was being charged as it was providing all facilities to those who have shifted to their flats. It said that delay in the project was caused because of the Covid-19 pandemic, and it was the buyers who had forced it to give them physical ownership of their units without OC. However, NCDRC was not convinced with the submission of the builders and permitted the plea of homebuyers by relying upon a recent judgment delivered by the Supreme Court in January and an earlier verdict of the Commission. Image Source Also read: Property costs likely to increase by 5-10% in 2022: Anarock

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code