Developers Urge UP RERA to Reconsider occupancy certificate(OC) Directive for Homebuyers in Noida
On Monday, a major real estate developers’ association and a homebuyers’ body in Noida called on the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) to rethink its recent directive mandating an occupancy certificate (OC) before issuing possession letters. This requirement, they argue, disadvantages homebuyers in long-delayed projects in Western Uttar Pradesh, including Noida and Greater Noida.
In its June 8 statement, UP RERA emphasized that receiving an occupancy certificate or completion certificate is mandatory for promoters before offering possession letters to allottees. The regulation aims to prevent arbitrariness by promoters and eliminate disputes with flat buyers regarding possession offers.
CREDAI Western Uttar Pradesh Secretary Dinesh Gupta criticized the directive, suggesting that it should apply only to new projects. Gupta highlighted that many homebuyers in stuck projects have completed their units but are awaiting OCs from local authorities in Noida and Greater Noida. Numerous OCs and registries in these group housing projects are delayed due to pending dues by builders.
The primary concern is for end-users who buy homes to live in, as they bear the burden of paying both EMIs on home loans and rent for their current accommodations. Abhishek Kumar, president of the Noida Extension Flat Owners’ Welfare Association (NEFOWA), argued that UP RERA’s rule overlooks the ground reality. Declaring possession without an occupancy certificate or CC illegal puts significant strain on homebuyers in older projects where builders are non-cooperative.
Kumar acknowledged that the rule could be beneficial for new projects where full payment for land has been made. However, for projects where OCs or CCs are pending due to bankrupt or missing builders, the rule is not favorable to buyers.
UP RERA Chairman Sanjay Bhoosreddy stated that promoters often use the term “offer of possession” in final demand letters, causing confusion among allottees. He emphasized that an “offer of possession” should strictly mean the physical possession of the property.
In 2017, UP RERA introduced the concept of a deemed OC, allowing possession in projects with critical no-objection certificates (NOCs) for fire, electricity, lift, and finance. Suresh Garg, Vice President of CREDAI Western UP, explained that builders typically issue a final demand letter after obtaining an OC or deemed OC, in line with their builder-buyer agreements. However, confusion arises when builders use the term “possession letter” prematurely.
The developers’ association and homebuyers’ body are calling for a nuanced approach to the directive, ensuring that it protects homebuyers’ interests without causing undue hardship in delayed projects.
Read more: RERA Gurugram Inspects 8 Projects for Extension
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