Key Highlights: BMC’s Proposed OC Policy for Housing Societies
- Policy to Address Long-Pending OCs – The Brihanmumbai Municipal Corporation (BMC) is preparing a new policy to help thousands of housing societies obtain long-pending Occupation Certificates.
- Relief for 25,000 Housing Societies – The proposed framework could benefit nearly 25,000 buildings in Mumbai currently functioning without an OC.
- Amnesty Scheme for Regularisation – Housing societies may be allowed to regularise their buildings by paying specified charges, depending on the nature of deviations and violations.
- One-Year Application Window – Societies are likely to receive around one year to apply for OCs, during which penalties may be waived.
- Possible Inclusion of Commercial Units – The policy may extend benefits to both residential and commercial units within housing societies.
- Final Approval Process Pending – The proposal will first go to BMC’s standing committee and then to the Maharashtra Urban Development Department for final approval.
The Brihanmumbai Municipal Corporation (BMC) is set to take a bold step that could help residents resolve their difficult legal and civic issues after a long delay by unveiling a new policy framework by the end of March that will allow thousands of housing societies across Mumbai to finally get their long, pending Occupation Certificates (OCs).
The draft policy, according to many sources, stands to make a difference for as many as 25, 000 housing societies in the metropolis that have been operating without an OC for one or more years. A good percentage of these buildings were erected many years back and, in spite of their lack of this essential municipal authority approval, have been in continual occupation till now.
Sources mention that the civic administration will probably submit the proposal to BMC's standing committee soon. Following the civic approval, the same will be sent to the Urban Development Department of Maharashtra Government for the final nod.
This step is consequent upon a statement by the Maharashtra government in September 2025 when it expressed that a policy will be enacted that would lay down clear rules and procedures for housing societies that intend to obtain Occupation Certificates.
Amnesty scheme likely to be introduced
Officials familiar with the development said the policy will include an amnesty scheme that will allow housing societies to regularise their buildings by paying specified charges. Applications for obtaining an OC will be accepted within a fixed time frame under the scheme.
“Once the standing committee approves it, the policy will be forwarded to the Maharashtra government's Urban Development Department for the final go-ahead,” a BMC official said as per HT.
Under the proposal, the amount payable by housing societies will depend on factors such as the nature of deviations, size of the building, and extent of violations from approved building plans. The broader objective of the policy is to bring a large number of existing residential buildings into legal compliance and ensure that residents receive proper civic documentation for their homes.
Debate over inclusion of commercial units
One of the key discussions surrounding the policy has been whether the benefit should extend only to residential units or also include commercial establishments operating within housing societies.
Gopal Shetty, former BJP Member of Parliament from North Mumbai who headed the party’s committee examining the OC issue, said the matter was debated extensively.
“There were ongoing discussions on whether commercial units should also be given OC or not, along with residential units. However, now the decision is under consideration that OC should be given to all,” Shetty said.
If approved in its current form, the policy could therefore extend benefits to both residential apartment owners and commercial unit holders within housing societies.
One-year window expected for applications
Civic representatives indicated that the proposal is nearing its final stages and could soon be placed before the BMC’s standing committee.
Siddarth Sharma, a BJP corporator and member of the BMC’s law committee, said the administration is working towards ensuring that residents receive long-pending approvals without discrimination.
“The decisions are in the final stages, and we are expecting that the proposal of the policy will be put forward in the BMC's standing committee shortly in the next few days. The aim is to ensure that all the citizens, irrespective of whether they are commercial unit or residential unit owners, should get OC,” Sharma said.
He added that the policy may include a one-year window during which housing societies can apply for the certificate.
“The policy will be comprehensive, wherein we are going to give around one year's period to housing societies to come forward and apply for OC, during which they will not be levied any penalty. Further, to not discriminate, even commercial unit holders are expected to be given OC,” Sharma said as per HT.
Importance of Occupation Certificates An Occupation Certificate (OC) is the most important document that a municipal authority can give to any building owner to legally authorize its use. The issuing authority ensures through document verification, physical verification and other steps that a building is in line with the approved plans and that it meets all the norms according to the rules and regulations.
The OC comes as proof that the building can be safely occupied. Dwellers can run into a number of legal and financial problems if the OC is not there. Sometimes, a lack of an Occupation Certificate can be the reason why a bank might not give a home loan or mortgage for a property.
Even if a person wants to redevelop his/her old building, this process gets stalled because an OC is non-existent; which makes the legal part of approvals tricky. It even creates problems while going to a higher level for legal permissions/public distribution of water from a tank, drainage, and other civic services.
Availability may not only be denied but also always be subjected to further approvals if the building doesn't possess the document. One of the major problems of thousands of co-operative housing societies in Mumbai is lack of Occupancy Certificates. If the proposed BMC scheme is put in place, this can be a permanent solution for this issue as well as can bring a regulatory clarity in the residential scenario of the city.
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