The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has mandated that competent authorities cease issuing temporary completion certificates (C.C.) or occupancy certificates (O.C.). This directive, issued on July 12, 2024, aims to improve transparency and compliance in the real estate sector by addressing the inconsistencies and confusion arising from the current certificate issuance practices.
Background and Rationale
The Indian real estate sector often grapples with transparency and regulatory adherence issues. UP-RERA identified the issuance of temporary or part-completion and occupancy certificates as a significant problem, leading to confusion among homebuyers due to mismatched project details provided by promoters and recorded by authorities.
The authority noted that part-C.C. or O.C. were being issued with project details that did not match the names registered with RERA or those in the Builder-Buyer Agreement (BBA). This discrepancy undermines homebuyer confidence and the regulatory process’s integrity.
Directives Issued by UP-RERA
To address these issues, UP-RERA has issued specific directives to ensure compliance and transparency:
- Prohibition of Temporary Certificates: Authorities must immediately stop issuing any form of temporary or part-completion certificates or occupancy certificates, ensuring all issued certificates are final and reflect the project’s true completion status.
- Consistency in Project Details: Authorities must ensure that the names of towers or blocks in part-C.C. or O.C. match those registered with RERA by the promoter, maintaining consistency and preventing discrepancies that could mislead homebuyers.
- Detailed Project Information: Authorities must obtain comprehensive project information from the promoter when applying for map sanction, including the marketing name, tower/block names, and unit numbers. This information must be used to ensure that completion or occupancy certificates issued reflect the same details, avoiding confusion regarding the project’s completion status.
Statement from UP-RERA
Sanjay Bhoosreddy, Chairman of UP-RERA, emphasized the importance of these directives for clarity and transparency, stating, “It has been observed that the names of the completed towers, blocks, or units mentioned in the part-C.C.s or O.C.s issued by some planning authorities do not match the names provided by the promoter to UP-RERA at the time of registration. This inconsistency creates doubts in the minds of both homebuyers and the regulatory authority. With some due diligence at the level of the planning authorities, this problem can be easily addressed.”
Impact on Homebuyers
UP-RERA’s primary goal is to protect homebuyers from uncertainties caused by inconsistent project details. Inconsistent information in part-C.C. or O.C. certificates can create doubts about the completion status of units, affecting processes such as the execution of conveyance deeds and the handover of possession, leading to delays and disputes.
By ensuring accurate and consistent project details in all completion and occupancy certificates, UP-RERA aims to eliminate these uncertainties, providing homebuyers with greater confidence in their units’ completion status and facilitating smoother transactions and possession processes.
Future Compliance and Transparency
UP-RERA’s directive is expected to foster a culture of compliance and transparency in the real estate sector. By requiring authorities to verify and maintain consistent project details, UP-RERA aims to establish a more reliable and trustworthy real estate market, demonstrating the authority’s commitment to upholding the legal and regulatory framework governing certificate issuance.
Enhancing Regulatory Integrity
UP-RERA’s directive underscores the importance of regulatory integrity in the real estate sector. By addressing inconsistent project details, the authority proactively safeguards homebuyers’ interests, setting a precedent for other regulatory authorities across India to adopt similar measures enhancing transparency and compliance.
Conclusion
UP-RERA’s directive to halt the issuance of temporary occupancy certificates is a significant step towards improving transparency and regulatory compliance in the real estate sector. By ensuring consistency in project details and prohibiting temporary certificates, UP-RERA protects homebuyers and maintains the integrity of the regulatory process.