Builder Delay in Possession OC CC and Society Formation Since 2015

Dear client,

The facts as stated by you disclose several serious legal and regulatory concerns in relation to the said building/wing of the project situated in Pune, Maharashtra. From the information provided, it appears that although the construction of the building was substantially completed around 2016, the builder has allegedly failed to obtain the Occupancy Certificate (OC) and Completion Certificate (CC) for the concerned wing and has also not completed the process of formation and handover of the cooperative housing society/apartment association. It is further alleged that certain additional construction, including an unauthorized 11th floor, may have been carried out beyond the sanctioned plan approved by the planning authority.

In such circumstances, purchase of a resale flat in the said building cannot be treated as entirely risk-free and requires detailed legal due diligence before any transaction is finalized. In the absence of an OC and CC, the occupation of the building may not be regarded as fully regularized under the applicable development control and municipal laws. The lack of statutory approvals may create future complications in relation to legality of occupation, transferability, financing, redevelopment, insurance, municipal permissions, and enforcement proceedings by the competent authority.

Further, if the allegation regarding unauthorized construction of the additional floor is correct, the same may potentially affect the approval status of the entire wing/building. Depending upon the nature and extent of deviation from the sanctioned plan, the planning authority may refuse to grant OC/CC until such deviations are regularized or removed in accordance with law. In certain situations, unauthorized construction may also expose the builder and/or occupants to notices, penalties, demolition proceedings, or litigation.

Before proceeding with any purchase, it is advisable that you independently verify all title and approval documents through a competent advocate experienced in Maharashtra property laws and RERA matters. The documents which should ordinarily be examined include, inter alia:

Title documents and chain of ownership;
Development Agreement and Power of Attorney, if applicable;
Sanctioned building plans and revised sanctioned plans;
Commencement Certificate;
Occupancy Certificate and Completion Certificate status;
Fire NOC and other statutory approvals;
MahaRERA registration details and disclosures;
Any notices, litigations, or proceedings pending before PMRDA, MahaRERA, consumer forums, civil courts, or other authorities;
Draft/proposed society formation documents and conveyance status;
Registered agreement pertaining to the flat proposed to be purchased.

It would also be prudent to ascertain whether any application for regularization of deviations has been filed and whether the planning authority has issued any adverse observations or notices in respect of the said wing/building.

In view of the prolonged delay since 2016 in obtaining OC/CC and in forming the society, coupled with the alleged unauthorized construction, the proposed transaction carries a comparatively higher legal and practical risk than a property having complete statutory compliance. Therefore, unless the legal status of the building and approvals is satisfactorily clarified through documentary verification, caution is advised before proceeding with the purchase.

As regards the remedies available to existing flat purchasers, they may have recourse under the provisions of the Real Estate (Regulation and Development) Act, 2016, the Maharashtra Ownership Flats Act, 1963, consumer protection laws, and other applicable statutes for seeking directions against the builder for obtaining OC/CC, formation of society, execution of conveyance, compensation for delay, and other consequential reliefs, depending upon the specific facts and documentation of the case.