Builder told to pay Rs 6 cr to housing society over delay in occupation certificate
A Mumbai builder must pay Rs 6 crore to a housing society. This payment is for failing to secure an occupation certificate for over twenty years. Members faced demolition risk and lived without essential services. The National Consumer Disputes Redressal Commission ordered the builder to rectify this. The builder must also obtain the occupation certificate within twelve months.
The National Consumer Disputes Redressal Commission (NCDRC) has ordered a Mumbai builder to pay Rs 6 crore to a cooperative housing society over a 20-year delay in obtaining an occupation certificate. The society, Tirupati Devi Cooperative Housing Society, had been living under the constant threat of demolition for over two decades due to the builder's failure to provide the necessary certificates and comply with redevelopment plans.
The dispute arose after the society discovered that the construction did not match the approved plans. The members alleged that the developer had provided additional flats with 20% more carpet area and failed to obtain the required approvals. The builder, Raja Construction Company, denied these allegations, claiming that the complaint was filed late and that some flat owners had made illegal changes to their properties.
However, the NCDRC found no evidence to support the builder's claims. It noted that the developer had agreed to provide the additional carpet area and was responsible for obtaining the occupation certificate and completing the necessary formalities. The commission held the builder responsible for the legality of the construction and the risk faced by the society and its members.
The commission increased the compensation rate to 1.5 times the stipulated amount for the period from June 2008 to August 2026, due to the long delay and the ongoing risk of demolition. This amounted to Rs 3.24 crore, plus an additional Rs 26 lakh for the lack of municipal water connection and extra municipal taxes. The total compensation awarded to the society was Rs 6 crore, with the builder and its partners held jointly and severally liable.
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