+
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”.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

BMW Ventures Secures Rs 249.83 Million (mn) Steel Orders

BMW Ventures Limited said it has secured two purchase orders totalling Rs 249.83 million (mn) from Lata Projects Limited for the supply of TMT steel FE-550D grade for three units of 800 megawatt (MW) capacity at the USCTPP Adani project. The orders were disclosed to the stock exchanges under Regulation 30 of the SEBI Listing Regulations and carry a contract value inclusive of all taxes.\n\nThe company stated that the orders will be executed within eight weeks from the date of the purchase orders and that the contract provides for 100 per cent advance payment with specified guarantees. The supp..

Next Story
Real Estate

Housing Sales Dip in Top Eight Cities in Q2, Pune and Bengaluru Hit Hard

Housing sales across the top eight cities fell six point one per cent year-on-year to 91,729 units in the April-June quarter from 97,674 a year earlier, PropTiger’s Real Insight Residential report showed. The moderation reflected seasonal pre-monsoon effects and heightened buyer caution amid the US-Iran conflict. New launches rose six per cent to 89,161 units. The impact was concentrated in technology-driven markets, with Pune and Bengaluru among the hardest hit. Pune recorded the steepest annual decline at 20.8 per cent, with sales falling to 12,642 units, while Ahmedabad declined 20.2 per ..

Next Story
Infrastructure Urban

India And ADB Sign US$230 Million Loan To Modernise Chennai Water

The Government of India and the Asian Development Bank (ADB) signed a US$230 million loan to modernise and expand water supply and sanitation infrastructure in Chennai. Saurabh Singh, Deputy Secretary, Department of Economic Affairs (DEA), signed on behalf of the Government of India and Mio Oka, Country Director of ADB’s India Resident Mission, signed for the lender. The engagement was guided by Baldeo Purushartha, Joint Secretary (ADB and Japan), DEA. The Chennai Climate-Resilient Water Security and Sewerage Project aims to improve access to safe and reliable water and sanitation citywide w..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code