Builder’s Failure To Obtain Occupancy Certificate is a Deficiency In Service Under Consumer Protection Act :SC

The apex court on Tuesday held that failure to get occupancy certificate will be deficiency in service and will be held liable under consumer protection act , 1986.

The flat purchasers are well within their rights to ask for compensation for higher payment of taxes and water charges by flat owners , due to lack of occupancy certificate .

This case is filed by co-operative housing society ltd. , where complainant is demanding for refund of excess payment of taxes to municipal corporation , du to alleged deficiency of service of builder , because of failure to obtain occupancy certificate 25% higher property tax and 50% of additional water charges paid .

The national consumer dispute redressal commission (NCDRC) dismissed the complaint on the ground that it does not appear as a consumer complaint but as recovery proceeding .

The court referred Maharastra ownership flats Act , which requires compulsorily the builder to obtain occupancy  certificate , promoter is also in the list which is needed to pay for ground rent , water charges etc , till the property is fully discharged to the flat owner .

Court finally observed that rejection of the complaint is a narrow view which is not in terms with the welfare objective of consumer protection act ,1986 .

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