What is occupancy certificate

September 1, 2012

In case of buildings in the jurisdiction of Bangalore Mahanagara Palike, be it residential or commercial, issue of Occupancy Certificate by the BBMP on completion of construction is a mandatory requirement under the City of Bangalore Municipal Corporation Building Bye-law 2003. Bye-law 5.6 of the bye-law provides that every person shall, before the expiry of five years from the date of issue of licence, complete the construction or reconstruction of a building. Within one month after the completion of the erection of a building, the person shall send an intimation to the Commissioner in writing of such completion accompanied by a certificate in Schedule VIII certified by a Registered Architect/Engineer/Supervisor and shall apply for permission to occupy the building. The authority shall inspect the building, including whether the owner had obtained commencement certificate as per Section 300 of the Karnataka Municipal Corporations Act, 1976, and compliance regarding production of all required documents including clearance from the Fire Service Department in the case of high-rise buildings at the time of submitting application. Then it shall intimate the applicant within 30 days of receipt of the intimation whether the application for occupancy certificate is accepted or rejected. In case the application is accepted, the occupancy certificate shall be issued in the form given in Schedule IX of the Bye-laws provided the building is in accordance with the sanctioned plan. The bye-law further provides that physical inspection means theauthority shall find out whether the building has been constructed as per the plan and includes inspections by the Fire Service Department, wherever necessary.

Bye-law 5.7 provides that no person shall occupy or allow any other person to occupy any new building or part of it for any purpose whatsoever until an occupancy certificate to such buildings or part thereof has been granted by an officer authorised to give such certificate, if in his opinion in every respect the building has been completed according to the sanctioned plans and is fit for the use for which it is erected. Any prospective purchaser of a unit in any high-rise buildings should insist on the builder furnishing an Occupancy Certificate to him before purchase. This is because in case the Occupancy Certificate has been issued by the BBMP, it can be safely presumed that the building constructed is in order and deviations, if any, have been regularized in legal and lawful manner

An important post-construction cost in connection with residential apartments is the obtaining of Occupancy Certificate from the Bruhat Bangalore Mahangara Palike. Only after issue of the certificate can an owner or builder be granted permission to occupy the building. The certificate is issued under the provisions of by-law 5.6 of the Bruhat Bangalore Mahangara Palike Building By-Laws 2003. On intimation from the owner or the builder of the residential apartment complex that the construction has been completed and on his filing an application for the issue of the certificate, the BBMP authorities inspect the complex and confirm whether it has been completed in accordance with the sanctioned plan. If yes, they will recommend issue of the certificate. However, if the authorities find that deviations up to five per cent have been made from the plan, they will regularise it by levy of a compounding fee which will depend on the extent of deviation made. Once the fee is paid they will issue the occupancy certificate. Further, the certificate will be issued only after obtaining clearances from the Fire Force Department and generally will be subject to the following conditions: The car parking in the basement shall have adequate safety measures. It shall be built entirely at the risk and cost of the owner and the BBMP will not be responsible for any kind of damage, loss, risk etc., arising out of the same. The owner/builder shall not add or alter the structure or a part of the structure without BBMP permission. If he does so, the BBMP has the right to demolish the deviation/altered/added portion without any prior notice. Basement floor, ground floor and surface area should be used for car parking purpose only. Footpath in front of the building should be maintained in good condition. Rainwater harvesting structure shall be maintained in good condition for storing water for non-potable purpose or recharge of ground water at all times as per building bye-laws clause No.32(b) If deviations have been effected from the sanctioned plan while constructing the building, the security deposit is forfeited.

The owner shall make his own arrangement to dispose of the debris/garbage after segregating it into organic and inorganic waste. He shall make suitable arrangement to transport and dump these segregated wastes in consultation with the BBMP Zonal Health Officer. In case of any false information or pending court cases, the Occupancy Certificate shall be cancelled. On default of the above conditions, the certificate will be withdrawn without notice. (N.C.S. Raghavan is a chartered accountant and Arvind Raghavan, an advocate)