The authorities are upset that numerous builders in Mumbai are using Intent of Disapproval as permission for construction; says Commencement Certificate is the stage after obtaining IOD
The reaction comes after an order passed by MahaRERA on January 2
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The Maharashtra Real Estate Regulatory Authority (MahaRERA) has expressed its displeasure over many builders in Mumbai using Intent of Disapproval (IOD) as permission to proceed with construction. It cannot be equated with Commencement Certificate (CC), which is the stage after obtaining IOD, clarified a Member and Adjudicating officer, MahaRERA. The officer has directed RERA authorities to make a provision online for mandatory uploading of CCs, which are not being uploaded due to the lack of such a provision currently.
Advocate Vinod Sampat, founder of Cooperative Societies' Users' Association, said the implementation of MahaRERA would be achieved to greater extent if its rules are given less weightage, and provisions of RERA act are strictly complied with. The need of the hour is to send a signal to the builders' lobby that taking the consumer for granted will not be tolerated.
IOD cannot be equated with CC
Activists are awaiting judgments in favour of the consumer from MahaRERA, which will help boost the confidence of the public at large. The reaction comes in the wake of an order passed by MahaRERA on January 2, while hearing a plea filed by four flat purchasers in an upcoming township in Pune by Kul Developers (Private) Limited, which has not uploaded its CC.
In his order, (a copy is with mid-day) B D Kapadnis, Member and Adjudicating officer, MahaRERA, stated, "I have been told that a local authority in Mumbai normally issues Intent of Disapproval at first instance, which is being treated as permission to proceed with the project. Intent of Disapproval (IOD) cannot be equated with commencement certificate as defined by the RERA. IOD mentions shortcomings/deficits in the proposal, seeking permission to commence the construction. IOD very often mentions that some more permissions or no objections are required from various authorities, and therefore, the proposal for permission to commence construction is disapproved.
"In other words, if it is to be treated as permission for construction, it is conditional on compliance of those conditions alone that construction can be started. In fact, it only indicates that papers for obtaining commencement certificate have been submitted to the competent authority. Commencement certificate is given only when all the legal requirements are complied with. It is the stage after IOD."
"When a project is registered under RERA, common man presumes that all the requirements of law are complied with, and it is safe for transactions with the promoter. The registration certificate acts like a guarantee of soundness and viability of the project. That is why it is incumbent on the promoter to quote the registration number of his project in every advertisement. The Commencement Certificate helps bring transparency and efficiency in the housing industry. Various ongoing projects in the state are being delayed only because approvals, permissions and no objections have not been taken before commencement of construction activities," stated Kapadnis in his order.
CC must be ensured
It appears that it is the intention of parliament that a promoter should not sell any unit of his project unless and until the CC is obtained after taking all permissions and after complying with all the legal compliances. Therefore, to equate IOD with commencement certificate is illegal and unethical. It is the duty of Real Estate Regulatory Authority to deprecate the practice of issuance of IOD and ensure issuance of commencement certificate to develop the housing industry and protect consumers in the days to come.
Real estate experts say that the existing software developed by MahaRERA has not made it mandatory to enclose commencement certificate (CC) and therefore builders do not upload the same. Kapadnis has also opined that compliance of this legal provision is necessary. Advocate Sampat added, "Once IOD is obtained, the builder has to ensure that the premises are vacated, and only then the CC is issued. This is important for all constructions including re-development projects."
Advocate Nilesh Gala said under the RERA rules it was not mandatory for builders to start the project before obtaining a CC, and their software which was introduced during the implementation of the act, did not have provisions for uploading the same. Therefore many builders tend to take the customers for granted.
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