Two issues that plauge apartment owners.

Apartment owners in cities are plagued by two major issues.

One is that the builder seldom gets an occupation certificate for the building and the other is that the builder seldom transfers the title and interest of land to the society on which he has constructed the building.

The reasons for this behavior can be found in personal greed and the lack of strict application of law by the law makers and law keepers.

According to Maharashtra Ownership of Flats Act, an act under which all apartments are sold in Maharashtra, a builder can not give possession without first getting an OC (Occupation Certificate). But builders do give possession and the municipal corporations extend facilities like garbage collection, sewerage and water connections to such buildings. According to MOFA all such buildings are illegal and the builder is punishable with a penalty calculated on a daily basis for giving possession without obtaining an OC.

Obtaining an OC requires that the builder subject his project to final scrutiny by the local government officers and payment of fees for infrastructure development like roads, gutters, sewerage, storm water drains, etc. The builder in connivance with the local government officials often fails to pay this fees and disappears from the scene.

He starts another project and does the same trick there too. No builder has yet been penalized or his business license canceled because he has not obtained OC for his buildings.

The other matter of conveyance of title and interest in land to the society. This too is not done deliberately because the builder even after getting money for every square inch of land and building constructed wants to retain control over the land just in case some future government relaxation in development rules may allow him to add some more apartments to the same building and on the same land.

To add insult to injury, local governments, like the Mumbai Municipal Corporation impose a higher charge for water supply, sewerage and garbage collection. Also all such buildings are illegal and subject to threats of demolition from the corporation.

What does the Maharashtra Chamber of Housing Industry (MCHI) have to say about this? What has it done to rein in the black sheep amongst its members? How many builders have been thrown out of the the association for violating the letter and spirit of laws meant to protect purchasers of apartments?

In light of this the recent article in Times of India about government considering giving amnesty to pre-2001 buildings within municipal limits of Bombay is a ray of hope for societies that have been left in the lurch by unscrupulous builders.

Read the article here