Importance of commencement certificate

POSTED BY Badri ON November 28, 2012 10:54 am COMMENTS (11)

Hi,

I paid 1 lakh booking amount to buy an under construction flat in bangalore. After that I got a set of documents from builder for legal verification. When my lawyer verified them, he says that commencement certificate is missing. I asked builder for that and he says he doesn’t have one, but he will get it in future. He already completed 50% of the building without CC. My lawyer says its a risk to buy this property. But when I checked the builder’s past history its been good. What do you guys suggest..?

The builder is sai associates, bangalore. (www.saiproperties.com)

Badri.

11 replies on this article “Importance of commencement certificate”

  1. Tery says:

    Hello Sir,
    I request someone to educate me on my below query. I need to know if the document (Bagota) issued by local authorities carry the same weightage as OC and will I face any concerns infuture

    1. Hi Tery

      Thanks for asking your question. However we do not have answer to your question.

      Manish

  2. Tery says:

    Dear sir,
    My building does not have an OC or CC, but the brokwr says we have Bagota.
    Let me know if you are aware of this concept.
    I guess it is a document issued to the owners by the local authorities who do not have OC from the builders.
    I need to know if the document carries the samw weightage as OC.

    1. Hi Tery

      Your cases is a bit complex and I think we are not the right people to comment on it.

      My suggestion would be hire someone who is professional in this area and consult them

      Manish

  3. ashalanshu says:

    Dear Parit, penalty means the thing has been regularized.

    Thanks

    Ashal

  4. parit says:

    Hello Bond Bhai ,

    If a builder does not have commencement certificate but has paid the fine and produced recipt for it , is that fine . The plan for the flat is also approved . Will one get occupancy certificate on completion .

    Paritosh

  5. Bond Bhai says:

    For example, if your complex has 100 Apartments, each with an average of 1200sq built up, then the “penalty” will be – 100 * 1200 * 50 = 60,00,000. 60L need to paid by the developer.

  6. Bond Bhai says:

    50/sq mtr for the whole area. Not just your apartment. You can have a legal flat on an illegal plan. The builder has to pay the fine and god knows what happens if there are deviations.

  7. Badri says:

    Thanks a lot Bond Bhai for the reply.
    But the third point doesn’t make sense to me. If the builder builds a property illegally, then paying 50/sq.meter would make it legal..?
    In my case, my apartmanet area is 1145 sq.ft which comes to 107 sq.meters. So just by paying 5000/- I will get occupancy certificate. Is that really true..?

  8. Bond Bhai says:

    I am sure you know that the Commencement certificate should be applied for by the builder when they lay the foundation and have erected atleast the peripheral pillars. After this the builder can approach the BDA/BBMP for the issue of a commencement certificate. The BDA/BBMP, after carrying out an inspection of the site and the construction work carried on till that date, will issue a “commencement certificate”.
    Now, Unless the commencement certificate is granted or issued, the builder cannot start or begin the construction, if he does begin or start the construction, without obtaining the Commencement Certificate, the construction may be termed as illegal. Also, without the CC you will not be issued “Occupancy Certificate”
    Second problem: The BBMP have the right to issue eviction notice.
    Third : A penalty of Rs50/- per square meter will be levied for such buildings, which have not obtained Commencement Certificate, before the issuance of Occupancy Certificate. This might have to paid by you, if the builder does not agree!

    So make sure you keep all these points in mind before coming to a decision.

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