Real Estate Developers and Homebuyers Oppose UPRERA’s Occupancy Certificate Rule

Real estate developers and homebuyers have raised objections to the Uttar Pradesh Real Estate Regulatory Authority’s (UPRERA) new rule, which mandates that possession of completed housing projects cannot be given without an occupancy or completion certificate. This move requires developers to obtain various non-objection certificates (NOCs) such as fire safety clearances, lift functional certificates, structure safety clearance, and no dues certificates before applying for an occupancy certificate (OC).

Previously, UPRERA allowed possession of housing projects with deemed OCs based on key NOCs like fire, finance, and lift safety. This change has been challenged by both developers and homebuyers, who argue that it will cause significant delays and financial burdens.

Homebuyers’ Concerns

Abhishek Kumar, President of the Noida Extension Flat Owners Welfare Association, highlighted the struggles of homebuyers who are paying home loan installments and rent simultaneously due to delayed possession. He emphasized that many developers, especially those with stalled projects, are unable to obtain final OCs due to financial constraints, leaving homebuyers in a lurch.

Developers’ Response

The Confederation of Real Estate Developers' Association of India (CREDAI) has also opposed the new model format. Dinesh Gupta, Secretary of CREDAI, mentioned that even with all requisite documents submitted, local authorities often delay issuing OCs due to various reasons, including pending court cases. He argued that such delays unjustly extend the waiting period for homebuyers.

UPRERA’s Stand

UPRERA Chairman Sanjay Bhoosreddy clarified that the new rule aims to prevent confusion caused by misleading offers of possession letters. He stated that the sole purpose of the new model format is to ensure that possession is only offered when the OC or CC is obtained, thus protecting home buyers' interests.

UPRERA has acknowledged the issues raised and promised to consider them in future deliberations.

Cover image- purplerealtors.com