No Loans, Electricity, Water and Sewerage Connections for Buildings
Real Estate

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”.

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”.

Next Story
Infrastructure Urban

InsideFPV Delivers ₹10 Crore Kamikaze Drone Order Under MoD’s EPR Route

InsideFPV, a Surat-based drone technology manufacturer, has successfully executed a ₹10 crore defence contract to supply indigenous kamikaze drones under the Ministry of Defence’s Emergency Procurement Route (EPR). The company completed the delivery of hundreds of FPV kamikaze drone platforms within a rapid two-month timeframe, highlighting its ability to meet urgent military procurement timelines.The supply orders were fulfilled under the emergency procurement mechanism, which is aimed at fast-tracking acquisitions for immediate operational needs. InsideFPV’s quick execution reflects it..

Next Story
Infrastructure Energy

Vedanta Resources Secures Fitch Upgrade to ‘BB-’, Best Rating Since 2015

Vedanta Resources Limited (VRL), a global player in metals, oil & gas, critical minerals, power and technology, has received a credit rating upgrade from Fitch Ratings, marking its strongest bond rating in over a decade.Fitch has raised Vedanta Resources’ Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘BB-’ from ‘B+’, while maintaining a Stable Outlook. The agency also upgraded VRL’s senior unsecured rating, along with the ratings of US dollar-denominated bonds issued by Vedanta Resources Finance II Plc and guaranteed by VRL, to ‘BB-’.The upgrade represents Vedan..

Next Story
Real Estate

NAREDCO NextGen NCR Chapter Launched

The NAREDCO NextGen NCR Chapter was recently launched at Excelerate 2026 in Mumbai, marking a key step towards integrating emerging real estate leaders from the National Capital Region with the national platform. The initiative aims to promote sustainable and responsible urban development through collaboration and knowledge exchange.The event brought together young developers, entrepreneurs, and professionals from across NCR, including Noida, Gurugram, Ghaziabad, Faridabad, Bhiwadi, and Meerut. Discussions focused on urban development, finance, sustainability, innovation, and policy, emphasisi..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement