The Maharashtra government is preparing a new policy framework that could provide relief to nearly 25,000 cooperative housing societies across Mumbai that have been functioning without Occupation Certificates (OCs) for years. A detailed Government Resolution (GR) is expected in the first week of October, setting the rules for an amnesty scheme aimed at regularising buildings that have been in bureaucratic and legal limbo.
What the policy seeks to address?
An Occupation Certificate, issued by the municipal corporation, is a mandatory document certifying that a building has been constructed according to approved plans and is fit for habitation. Without this document, residents face multiple hurdles, including difficulty in availing home loans, lack of redevelopment approvals, and uncertainty in civic connections such as water and sewage.
Mumbai has thousands of housing societies, many built decades ago, that continue to function without OCs due to non-compliance, technical deviations, or incomplete legal formalities. According to reports, over 20,000 buildings in the city currently hold full OCs, while more than 700 have partial approvals, leaving a large section of homeowners in a grey zone.
Key features of the proposed scheme
Officials familiar with the matter said the government’s upcoming amnesty scheme would simplify the OC acquisition process by removing long-standing technical barriers. The scheme will allow societies to apply for regularisation even if they lack a conveyance deed or a completion certificate. Importantly, buildings with Floor Space Index (FSI) alterations or minor violations will also be eligible, though they will need to pay a premium.
The state is expected to provide discounted premium rates to encourage applications. In cases where violations are substantial, penalties will be calculated based on the type and extent of deviations. Applications will only be accepted within a fixed deadline, creating urgency for societies to comply.
Former BJP MP Gopal Shetty, who is part of the committee framing the policy, said the scheme aims to bring clarity for thousands of homeowners. He indicated that discounted charges will apply for certain violations, but final details will only be known once the GR is issued.
For residents, the move could unlock financial security and property rights. Banks and housing finance companies often hesitate to extend loans for flats in buildings lacking OCs. Redevelopment projects, a key driver of Mumbai’s real estate renewal, are also frequently stalled when societies lack the certificate. By regularising these buildings, the government hopes to enable smoother redevelopment, improve civic compliance, and enhance property valuations.
From a policy standpoint, the amnesty scheme represents a shift from punitive measures to a pragmatic approach. Instead of penalising homeowners indefinitely for historical irregularities, the state aims to provide a structured path to legality while collecting revenue through penalties and premiums.
This is not the first time Maharashtra has explored regularisation of unauthorised or irregular buildings. Past attempts have seen limited success due to complex procedures and high penalty costs. The new initiative, if streamlined and time-bound, could mark a more effective intervention, especially given the scale of affected societies in Mumbai.
While the move is expected to benefit homeowners, urban planners caution that care must be taken to ensure that safety norms and essential building regulations are not compromised in the process. The state government will need to balance regularisation with accountability to avoid incentivising future violations.
With the detailed resolution due in early October, all eyes will be on the specifics of the amnesty scheme—particularly the penalty framework, eligibility criteria, and application deadlines. If executed effectively, the policy could resolve decades-old disputes and bring much-needed relief to thousands of Mumbai residents living in legal uncertainty.
.png)