Mumbai-based activist: Strengthen law to punish builders who don’t get OC

In many cases, municipal corporations demand fresh approvals for buildings who received OC from Gram Panchayat or Zilla Parishad. Representation Pic

A city-based NGO has written to the Chief Minister to make the Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale, Management and Transfer) Act, (MOFA) 1963 stricter in dealing with errant developers who do not procure an Occupation Certificate (OC). The letter advocates giving more power to authorities to impose penalties between Rs 50,000 and Rs 5 lakh on errant builders.

Advocate Godfrey Pimenta, trustee of Watchdog Foundation, said that the letter has been sent to the chief secretary of Maharashtra. "Thousands of hapless homebuyers are residing in buildings without OCs as there is no effective provision to deter developers. There is a lack of legal mechanisms to hold developers accountable for delaying to get OCs." "Residing in buildings with OCs can lead to safety concerns. The fire at Crystal Tower in Parel in 2018, which killed four and injured 16, is one such example," Pimenta said.

Bring accountability

The letter suggests empowering authorities to prosecute developers who fail to secure OCs within the stipulated time by introducing Section 13A. "To further discourage delays, we recommend a penalty between Rs 50,000 and Rs 5,00,000 per month, commensurate with the size of the building. Such an amendment would hold developers accountable and ensure public safety," Pimenta said, adding that the chief secretary marked the email to concerned officials.

Other issues in OC

In Maharashtra, many cities have experienced the rapid growth of high-rise buildings. However, residents of buildings not having approvals either get stuck with litigation or a stressful environment. "Many buildings in the state do not have OCs. On humanitarian grounds, residents are allowed to stay by paying a higher property tax and double the water charges. In most of the cases, the OC is not provided due to illegal construction, the violation of the Development Control Regulations, defaulting on payments, lack of infrastructure development, etc.," said Advocate Shreeprasad Parab, expert director, Maharashtra State Housing Federation.

Vasai-Virar and Kalyan-Dombivali Municipal Corporation (KDMC) have many projects which were approved by the Gram Panchayat or Zilla Parishad. However, after various areas were brought under their jurisdiction, the municipal corporations are demanding fresh approvals. "Gram Panchayat acts as an agent of the State and is a local authority included in Article 12 of the Constitution. After a Gram Panchayat has granted the OC, the municipality should not demand further certifications as long as the building is constructed as per Gram Panchayat requirements," said Parab.

Issue of illegal floors

Parab also pointed out developers building illegal floors or flats in buildings. "Corporations do not give OCs due to this illegality. While developers make a profit, society members later become aware of the discrepancies. The MRTP Act, 1966, has a solution for such illegal structures. The amendments in 2017 inserted Section 52A, under which, for unauthorised development carried out on or before December 31, 2015, the state government may, on the fulfillment of some conditions, pave the way for the planning authority to declare such development as compounded structure. If such declaration of compounded structure is made, no further proceedings against the owner or occupiers shall be continued," said Parab. "While the State has provided to compound the structure in MRTP Act, the MOFA should be strengthened to penalise developers for illegal structures and to impose the compounding cost of regularisation under Section 52A with damages and compensation to members," Advocate Parab said.

MahaSEWA in agreement

CA Ramesh Prabhu, founder chairman of MahaSEWA said that there are nearly 3 lakh occupied structures without proper approvals in the state. During the case of Worli's Campa Cola building, a BMC affidavit before the Supreme Court mentioned that Mumbai has nearly 50,000 such structures. Based on this, the SC stayed the demolition and got the building regularised." "In recent cases, projects involving thousands of flats in Vasai Virar and Kalyan Dombivli got registered on MahaRERA using fake documents. "After MahaRERA canceled building registrations in Kalyan Dombivli, local authorities await state committee for regularisation, aiming to aid flat buyers and prevent suffering," said Prabhu.

"MahaSEWA proposes an amnesty scheme for buildings occupied before Dec 31, 2020, requiring specific documents to prove occupancy. Violations must be rectified. However, for all dues, FSI violations, penalty, premium, etc., the concerned developer or the builder should be booked and the money should be recovered from him. Also, municipal corporation should accept an OC issued by Gram Panchayat or a local body. Residents of such buildings are protected under Article 21 of the Constitution," said Prabhu.