Failure of builder to obtain occupation certificate is deficiency in service: SC

Failure of builder to acquire occupation certificates is deficiency in service: SC : The Tribune India



PTI

New Delhi, January 13

Failure of a builder to acquire occupation certificates is a deficiency in service underneath Shopper Safety Act 1986, the Supreme Courtroom has stated.

A bench of Justices D Y Chandrachud and A S Bopanna held that the builder could be liable to refund cash if the homebuyers have been pressured to pay greater taxes and water fees resulting from lack of an occupancy certificates.

The apex courtroom was listening to an attraction in opposition to an order of the Nationwide Shopper Disputes Redressal Fee which dismissed a criticism by a cooperative housing society searching for refund of the surplus taxes and fees paid to the municipal authorities resulting from alleged deficiency of the builder.

The NCDRC had dismissed the criticism on the bottom that it was barred by limitation and that it was not maintainable because it was within the nature of a restoration continuing and never a shopper dispute.

In line with the petitioner society, the builder did not take steps to acquire the occupation certificates from the municipal authorities.

Within the absence of the occupation certificates, particular person flat house owners weren’t eligible for electrical energy and water connections, it stated.

Because of the efforts of the society, non permanent water and electrical energy connections have been granted by the authorities, nevertheless, the members of the appellant needed to pay property tax at a price 25 per cent greater than the conventional price and water fees at a price which was per cent greater than the conventional cost.

The highest courtroom put aside the NCDRC’s order which had turned down society’s plea in opposition to the builder and held they need to method in opposition to the authorities that are charging greater taxes.

“Within the current case, the respondent was accountable for transferring the title to the flats to the society together with the occupancy certificates. The failure of the respondent to acquire the occupation certificates is a deficiency in service for which the respondent is liable.

“Thus, the members of the appellant society are properly inside their rights as ‘customers’ to hope for compensation as a recompense for the ensuing legal responsibility (akin to fee of upper taxes and water fees by the house owners) arising from the dearth of an occupancy certificates,” the bench stated in a current order.



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