Homebuyers hail SC order making completion certificates mandatory for builders

Flat owners in Noida and Greater Noida on Friday welcomed a Supreme Court (SC) order, which held that a builder of a housing complex is legally bound to obtain completion certificate even if the homebuyer was given possession without that mandatory legal document, and said there are about 100 cases wherein possession was offered by the developer without obtaining completion certificate, causing issues for buyers.

Now that the SC has ruled that the onus of obtaining such document is on the builder, homebuyers are hopeful of getting some relief.

The SC ruling came on Thursday on a plea by homebuyers of a Kolkata housing complex which alleged that despite them paying a full flat cost and getting the flats registered in their name, the builder had failed to provide the completion certificate.

According to the handover process, the developer has to install lifts, fire safety systems, waste treatment plant, clear all financial dues and ensure that all other basic services are in place to make the housing project eligible for completion certificate from the local authority concerned.

Even in Noida and Greater Noida, a large number of housing projects don’t have completion certificates as the builders have defaulted on paying land cost.

“We are happy with the SC order because the developer now cannot run away from its responsibility. In Noida, several developers have offered possession without completion certificates,” said Ashish Mohan Gupta, president, Jaypee Infratech Limited real estate allottees welfare society.

While some builders have financial defaults, others couldn’t obtain the document because they offered possession to buyers in partially ready complexes as they did not have the funds to complete the services such as installation of lifts, waste treatment plant, fire safety systems and other services.

“There are around 100 housing complexes, where people are living without these mandatory services. In old projects, man y developers now feel that the homebuyers should bear the expenses to install all mandatory services necessary for obtaining completion certificate. How can we do that without having adequate funds? SC order is a landmark decision that will resolve our issues,” said Abhishek Kumar, president, Noida Extension flat owners welfare association, a buyers’ lobbying group.

Developer Nikhil Havelia, who is also secretary, Confederation of Real Estate Developers’ Association of India (Credai), a realtors’ lobbying body, said, “Some of the housing complexes in Noida do not have completion certificate owing to financial issues faced by developers. But we have demanded from the authority that in projects where basic services are in place, the completion certificate must be issued even if financial issues of the developer concerned are not settled.”

Ishtiyaq Ahmed, chief architect and town planner, Noida authority, said, “We issue completion certificate as per the law.When a housing project or any other structure fulfils all parameters that include clearances of financial dues, fire safety system and other services in the complex.”