Whether it is mandatory for Promoter to have first Completion Certificate and Occupation Certificate under the provisions of the Real Estate (Regulation and Development) Act, 2016 (RERA) before offering possession as well as asking the allottee to settle the account and satisfy the final demand? – Abha Khanna Vs. KVG Realtech Pvt. Ltd. – Uttar Pradesh REAT

Hon’ble Uttar Pradesh REAT held that: (i) A Promoter is required to first obtain C.C./O.C. from the prescribed authority, only thereafter register conveyance deed of the real estate in favour of the Allottee(s) and a legal & habitable possession can be offered to the Allottees. (ii) As per the provisions of the U.P. Apartments Act, 2010 read with the provisions of Act, 2016 a Promoter is required to offer legal and habitable possession to the allottees only after obtaining OC/CC and ask for clearing dues by raising final demand. In the instant case the offer of possession was given by the respondent to the appellant on 20.09.2019 without obtaining OC/CC. (iii) The interest chargeable from the allottee by the promoter, in case of default in payment as per demand, is equal to the rate of interest which the promoter is liable to pay to the allottee, in case of default/delayed possession on the part of promoter. (iv) The simple rate of interest at MCLR+1 percent balances the equities and is in line with the word and spirit of the Act and can be taken as “interest at such rate as may be prescribed” as mentioned in Sections 12, 18 and 19 of the Act, till the rate of interest for the purpose is notified by the State Government.

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