What is occupancy certificate and importance of it !!!

In 2006 AP government changed the building construction rules through GO 86. (Details can be found GHMC GO86 here ) and one important aspect of that is that GMHC issues occupancy certificate after they inspect the building and ensure that things are build as per plan.

The main problem earlier was that builders who were getting approval from GHMC (or eralier it was MCH and other municipal corporations) for constructing apartment, in reality they were not building as per the approved plan. GHMC was not capable to impose any kind of restrictions on builders and they were constructing buildings as per their will and not as per the plan.

Now because of new laws here is what happens

1. When builder gets approval from GHMC to construct the apartment building he has to mortgage 10% of flats. Builder can not sell those flats until GHMC issues occupancy certificate.

2. Once builder finishes the construction he acquires a completion certificate from a registered structural engineer and submits the same to GHMC. which with in few days does an inspection and issues Occupancy Certificate.

3. If GHMC founds any deviation from original approved plan, it can auction the mortgaged flats and correct the deviation.

4. Unless the building has got occupancy certificate from GHMC, any government agencies like Electricity Board, water board will not give connection. Even if they connection, they will charge three times than normal rate.

Since people are still not aware of these laws builders are not really following it. In my case I have bought an flat in pristine place apartment by SBC infraprojects in Gajularamaram. Now the apartment is almost ready but builder is not finishing up the rest of the work as he wants to first sell the remaining flats. Also he is not getting the electricity connection because he has to pay the three times minimum bill for the unsold flats, which he estimating to be 1 laks per month.

Government has created very good rule to protect the consumers but since people are not aware of the laws, not getting full advantage of it.