Recently, the Brihanmumbai Municipal Corporation (BMC) proposed an amnesty scheme aimed at resolving a long-standing issue faced by many Mumbai property owners, the absence of an Occupation Certificate (OC). However, the proposal has now been put on hold due to several complex conditions attached to its implementation.
Significance of the Amnesty Plan
An Occupation Certificate (OC) is one of the most important certificates given by a municipality stating that the structure complies with the approved drawings and is fit for occupation. In its absence, homeowners would be left without the facility of getting water, electricity connection, securing loans for their homes, or even selling their properties.
The amnesty plan by the BMC had been made to provide relief to about 12 lakh people owning about 25,000 residential structures in Mumbai city. These residential constructions might have been occupied years ago, but no certificate was obtained because of various reasons.
Under this plan, the housing society can obtain the certificate in exchange for paying the required amount. However, stakeholder apprehensions are causing delay in the process.
Key Requirements for the Proposed Scheme
Although the scheme seems promising, there are certain conditions which need to be met for the successful implementation of the scheme. There are six main requirements which the housing societies need to meet in order to qualify under the scheme. These are stated below:
1. Scheme Eligibility Cut-off: Occupation Prior to November 17, 2016
The scheme will only be applicable to those buildings that have been occupied prior to November 17, 2016. Proof of the same needs to be furnished by the housing societies in the form of electricity bills, tax receipts, etc.
2. Maximum Area of Apartment
The second most contentious clause is the maximum area of an apartment which is covered under the scheme. All those residential units which have more than 80 square meters (861 square feet) area cannot avail themselves of this benefit.
3. Primarily Residential Building
Buildings should contain over 50% residential units for their inclusion in this scheme. Although commercial units in those buildings may get the OC, they won’t benefit from this scheme financially. The clause makes sure that the focus stays on the welfare of residents, which might restrict mixed-use buildings.
4. Mandatory Approvals: IOD and CC
Building approval documents should include both Intimation of Disapproval (IOD) and Commencement Certificate (CC). These certificates show that the building project got approval before starting construction. Without those crucial approvals, buildings will not qualify, and there can be several structures without them.
5. NOC from Original Developer/Landowner
For getting OC through this amnesty scheme, it is essential to seek a No Objection Certificate (NOC) from the original developer or landowner. It might pose a significant challenge when the original developer/landowner is hard to trace, unwilling, or engaged in legal battles.
6. Non-Reregulation of Violations
The Brihanmumbai Municipal Corporation has confirmed that this amnesty scheme will only provide OCs to societies and buildings. There is no way to use the amnesty scheme to regularize any violation or irregularities.
Challenges and Issues
Although the objective of the scheme is well-meaning, it has been criticized as too stringent. Many housing societies and professionals believe that criteria such as maximum size limit, need for NOCs from developers, and mandatory approvals would ultimately negate the scheme’s objective itself.
In case of cities like Mumbai, which involve redevelopment, unorganized conversions, and multiple ownership, it will be difficult for many societies to fulfill these criteria. Moreover, the scheme does not take into account large apartments, thus adversely affecting the middle and upper-middle classes.
The reason why the standing committee has decided to postpone the scheme is clear. It is trying to work out a solution that is easier and simpler than the existing one.
Potential Benefits for Homeowners
If well-structured, the proposal is sure to revolutionize the face of the property industry in Mumbai. Having an OC will help homeowners get legal protection, enhance the marketability of their properties, and get access to financial services.
Housing societies too will have much more to gain from such a proposal because it gives them official status and access to all civic facilities. The success of this scheme hinges on whether the rules are simplified or not.
BMC now has an opportunity to take a break in the proposal, revise and upgrade the entire scheme. Discussions with various stakeholders including housing societies builders legal professionals, and city planners, will be essential to come up with an implementable policy. A well-planned approach that harmonizes strict law enforcement with ground realities can lead to major benefits for homeowners and also bring in thousands of unregistered homes into the system.
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