Completion Certificate/ Occupancy Certificate

Whether Occupancy Certificate issued by Municipal is treated as Completion Certificate under RERA | Date of issuance of the Completion Certificate is material for Proviso to Section 3(1) and Section 3(2)(b) of RERA | Promoter is free to produce other evidence to prove that the project was not an ongoing project as on the date of commencement of the RERA – P.V. Nidhish and Anr. Vs. Sivaprakash – Kerala High Court

Hon’ble Kerala High Court held that:

(i) What is relevant under Proviso to Section 3(1) of RERA is the date of completion of the project. What is relevant under Section 3(2)(b) is the date of receipt of Completion Certificate. On a conjoined reading of Proviso to Sub-Section (1) and Clause (b) of Sub Section (2) makes it abundantly clear that what is relevant, and material is the date of issuance of the Completion Certificate.
(ii) When it is proved that the Completion Certificate is received by the promoter before the date of commencement of the RERA, the project is not liable to be registered. In such case, further enquiry as to whether a project is ongoing or not is unwarranted.
(iii) Even if the original Occupancy Certificate received by the Promoter is not available, the promoter is free to produce other evidence to the satisfaction of the Authority to prove that Occupancy Certificate is issued before the date of commencement of the Act or that the project was not an ongoing project as on the date of commencement of the RERA to avoid registration under Section 3.

Whether Occupancy Certificate issued by Municipal is treated as Completion Certificate under RERA | Date of issuance of the Completion Certificate is material for Proviso to Section 3(1) and Section 3(2)(b) of RERA | Promoter is free to produce other evidence to prove that the project was not an ongoing project as on the date of commencement of the RERA – P.V. Nidhish and Anr. Vs. Sivaprakash – Kerala High Court Read Post »

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.

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 Read Post »

The Completion Certificate is a conclusive proof for completion of the project as far as the RERA is concerned | When it is proved that Completion Certificate is received by Promoter before the date of commencement of the RERA and, in such case, further enquiry as to whether a project is ongoing or not is unwarranted – P.V. Nidhish and Anr. Vs. Sivaprakash – Kerala High Court

Hon’ble Kerala High Court held that:

(i) The Completion Certificate is a conclusive proof for completion of the project as far as the RERA is concerned. When it is proved that the Completion Certificate is received by the promoter before the date of commencement of the RERA, the project is not liable to be registered. In such case, further enquiry as to whether a project is ongoing or not is unwarranted.
(ii) Even if the original Occupancy Certificate received by the Promoter is not available, the promoter is free to produce other evidences to the satisfaction of the Authority to prove that Occupancy Certificate is issued before the date of commencement of the Act or that the project was not an ongoing project as on the date of commencement of the RERA to avoid registration under Section 3.
(iii) If the Promoters could not prove the existence of Occupancy Certificates and dates of issuance of the Occupancy Certificates, the Commission Report, Expert Report and Sketches are definitely material pieces of evidence to decide whether the project was an ongoing one or not as on the date of commencement of the RERA.

The Completion Certificate is a conclusive proof for completion of the project as far as the RERA is concerned | When it is proved that Completion Certificate is received by Promoter before the date of commencement of the RERA and, in such case, further enquiry as to whether a project is ongoing or not is unwarranted – P.V. Nidhish and Anr. Vs. Sivaprakash – Kerala High Court Read Post »

Where completion certificate was erroneously obtained by promoters, then the same cannot be used for taking the promoters out of purview of Real Estate (Regulation and Development) Act, 2016 (RERA) – Sunil and Ors. Vs. The State of Madhya Pradesh and Ors. – Madhya Pradesh High Court

Hon’ble Madhya Pradesh High Court held that the scheme of RERA Act, 2016 is retroactive in character and if the projects are already completed or to which the completion certificate has been granted, the same would not come within the fold of Act, 2016 but the Act will apply on the ongoing projects and future projects registered under Section 3 to prospectively follow the mandate of Act, 2016. When an objection was filed by the Petitioners with regard to the applicability of provisions of Act, 2016, the RERA had obtained a spot inspection report and it was found that the Petitioners have not completed the development work and it was also observed by the Committee of three Officers that the completion certificate was not issued in accordance with law.

Where completion certificate was erroneously obtained by promoters, then the same cannot be used for taking the promoters out of purview of Real Estate (Regulation and Development) Act, 2016 (RERA) – Sunil and Ors. Vs. The State of Madhya Pradesh and Ors. – Madhya Pradesh High Court Read Post »

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