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Residents of Campa Cola in Mumbai have got relief from demolition, eviction till May 2014 . Problem in the case of Campa Cola flats was that the municipal corporation, Brihanmumbai Municipal Corporation (BMC), had not granted an occupation certificate (OC) to some of the flats as builder had not taken approval for them. This means residents did not have a valid certificate from the municipal body.  If buyers are not careful about legal procedures and approvals, they may may be in the same boat as these residents. Let’s look at the Campa Colo case and what is the importance of Occupancy Certificate

Campa Cola Flats Demolition

Campa Cola complex in  in upscale Worli area was developed between 1980 and 1989 by PSB Construction Company, B.Y. Builders and Yusuf Patel.  The  Brihanmumbai Municipal Corporation(BMC) had allowed construction of six stories but the developers built 16 to 20 floors.The Brihanmumbai Municipal Corporation (BMC), also known as the Municipal Corporation of Greater Mumbai (MCGM) or the Bruhanmumbai Mahanagar Palika, is the civic body that governs the city of Mumbai and is India’s richest municipal organization.  The BMC then issued notice to the builders in 1984 to stop work after it found irregularities in construction. The builders finished their work after paying the fine. The flats were subsequently sold and buyers occupied the flats.  102 flats (some reports say 96 flats)  in the compound have been constructed without approval.  Occupants have been issued eviction notices as they do not have an Occupation Certificate (OC).

Why now? The Municipal Corporation of Greater Mumbai (MCGM) too had turned a blind eye all these years. But trouble started when the residents dragged the municipality to court over non-supply of water. The officials, when pulled up, told the court that the structures were illegal. They later issued eviction notices to the residents, but took no action against the builder. The residents challenged the MCGM’s notice and subsequently approached the Supreme Court which only stayed the demolition drive till November 11. It also allowed the residents to seek regularisation from the appropriate authorities. Asked why no action was taken in the past,  MCGM officials were threatened by the underworld in 1980s against taking any action. Let’s see how the timeline

  • The Municipal Corporation of Greater Mumbai (MCGM) had not provided them Occupation Certificate or Occupancy Certification and water supply for all these years. The buildings have been ordering water tankers since 1989.
  • Residents have been paying property tax all these years.
  • The court on 27 February had ordered the Brihanmumbai Municipal Corporation (BMC) to demolish the illegally constructed flats and on 1 October refused to re-consider its earlier order and had set 11 November deadline to vacate 102 flats which were declared as illegal.
  • On 13 November, hours after over 100 agitated families clashed with the police while the civic squad was bulldozing its way into the premises, the apex court had stayed the demolition.
  • The Supreme Court asked the unauthorised flats owners at the Campa Cola society in Mumbai to vacate the premises by 31 May 2014 as no specific proposal could be worked out to provide them space in the compound for new construction.

Campa Cola Residents anguish

  • The residents asked why they were being singled out when more than 55,000 buildings in the city had no OC.
  • “We do not agree that the floors are illegal. We have been paying property tax for years now. At best, there is irregularity. Why did the government accept tax from us if our structures were illegal.
  • While the residents said that the MCGM should take the permissible FSI (Floor Space Index) into consideration before deciding the illegality. “The builders were given permission to construct five floors. But we have FSI for 91,000 square feet, which means only 21,000 square feet are illegal. Those will be 19 flats. We are okay if the authorities pull down those flats
  • Many residents expressed anguish at how the civic body let the builders go scot-free.
  • The residents alleged that the civic body wanted to vacate them at the behest of vested private interest. “Krishna developers which has bought over the rights from Pure Drinks, wants to construct a five-star hotel here. He wants us out. Another plush residential complex is coming up around 500 metres from here and that builder wants a stretch of our land to construct a good approach road,
  • The real estate prices in the area are one of the highest in the city.

Jayant Tipnis, who was once engaged as the architect for the Campa Cola compound, had tried several times to get the project regularised. “I approached the municipality several times with new plans, but they were rejected. I approached three Chief Ministers, but that too did not work. By then the builders had already sold the flats and were not really interested in pushing the matter.

Did the residents know that flats were illegal. Yes those you bought  knew as they got it at low cost.

Why paying Property Tax or having water connection not sufficient?

 The BMC provides services to citizens in Mumba and has to pay its bills. Property tax is one source of income for the BMC. And that is why the Campa Cola compound residents didn’t have to pool their garbage everyday and arrange for a private truck to lug it to faraway garbage dumps but simply depend on the BMC to do the job. Or take street lighting on the roads leading to the Campa Cola Compound. Or the roads itself.

And neither is a BMC water connection proof of legitimacy of a property. The BMC provides connections to buildings in Mumbai without an Occupation Certificate on a humanitarian basis and charges nearly double for such water supply.

Ref: First Post The Campa Cola case: Separating truth from fiction  

Basic Documents during and after construction

Few basic documents that come before construction and a few after are given below. The you can find the entire process for in detail at DoingBusiness Dealing with Construction Permits in Mumbai – India , for Delhi 

  • The first is the Intimation of Disapproval (IoD), which is issued by municipal corporation and includes a list of no-objection certificates (NOCs) which the applicant must obtain separately from various departments and government authorities. For example Environment clearance, aviation clearance, fire safety clearance, approved plans, etc., are all required before a developer can start construction. This becomes important when  the developers start selling the project even before receiving the Commencement Certificate .
  • Once this is done, a Commencement Certificate (CC) is issued in stages, usually first for the plinth level, then for a few floors at a time (say for up to third floor, then seventh floor, and so on). Commencement Certificate is the permission given by the local municipal authority to the developer to start construction, after it is satisfied that the developer has received all the clearances and approvals.
  • Once the building is complete, the architect applies for an Occupation Certificate (OC) after obtaining a set of no-objection certificates (NOCs) from various departments and after that a Building Completion Certificate (BCC) is issued.

Typically Documents for purchase of flat from a builder (Ref Hindu Documents to bag home loan)

Documents for buying property

Documents for buying property

  • Title deeds of the site/plot i.e., sale deed in favour of the loan applicant and prior link title deeds tracing the ownership of the property for a period of 30 years, at least 13 years.
  • RTCs/RORs are also to be submitted wherever applicable.
  • 7/12 extract or property register card of the land under construction.
  • Copy of N.A. permission for the land from the Collector.
  • Development agreement between the owner of land and the builder.
  • Copy of order under the Urban Land Ceiling Act.
  • Latest receipts of taxes paid.
  • Commencement certificate granted by the Corporation.
  • Documents if the construction is on own land:
  • Title deeds of the property, i.e. sale deed in favour of the present owner and prior link sale deeds tracing the ownership of the property for a period of 30 years, atleast 13 years.
  • Conversion/alienation order from competent authority for conversion of agricultural land for residential purpose.
  • Encumbrance Certificate/Search Report for the past 30 years, at least 13 years.
  • Up to date tax/lease rent paid receipts of the property.
  • 7/12 extract or property register card in your name.
  • Sanctioned building plan and license for construction from competent authority.
  • Development Agreement/Power of Attorney between the builder and land owner, if applicable
  • Necessary Permission from various local authorities like Electricity Board, Water Supply Board, Airport Authority etc., is to be furnished
  • Agreement of sale/ agreement for construction in favor of the applicant, showing details of estimate or the different stages of payments as the case may be.

 Occupation Certificate or Occupancy Certificate

Once the building is complete, the builder has to obtain an Occupation Certificate, which certifies that the building has complied with the approved plans.

  • Only once the OC is issued can flat owners occupy the apartments as per law, as otherwise the building is considered illegal. A new flat owner should insist on an OC from the builder before moving in.
  • Corporation can also initiate action against the flat owners, as the law says no person can move into a building without OC. Many builders do not bother to get OC and often new flat owners move into flats in a hurry once the construction is complete.
  • If your building does not have an OC : Residents can approach the  Muncipal Corporation, seek regularisation of the plans, comply with the norms. However, the law says that if the building has been constructed without any plans it cannot be regularised.

Sample images of Occupation Certificate of Mumbai from Apartmentadda Completion Certificate and Occupancy Certificate (click on image to enlarge)

Occupancy Certificate

Occupancy Certificate

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To avoid a Campa Cola-like situation is to be careful while purchasing a flat. Check the documents such as Occupation certificate. Did you check the documents before buying a house? What other things should one check for?

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