Supreme Court, Real Estate News, ET Real Estate

New Delhi: The Supreme Court on Thursday ruled that the builder of a housing complex is legally ‘bound to obtaincompletion certificate‘ for the structure even if distressed EMI-paying flat owners take possession of their homes before such compulsorily required certificates are issued.

Relief to 36 flat buyers Kolkata housing complex, the case against which is going on since 2006 RNR Enterprises Builder, came from a bench of Justices SR Bhat and Dipankar Datta, who criticized the National Consumer Disputes Redressal Commission (NCDRC) to say that flat buyers should obtain the completion certificate for the structure after they have taken possession before the certificate-issuing authorities.

The SC said, “It is true that the appellants (flat buyers) should not have taken possession without the completion certificate. However, it is not valid to direct the respondents (builder) to apply and obtain the completion certificate as required by law.” There was no basis.

Below Kolkata Municipal Corporation ActIt is the responsibility of the builder to apply for the completion certificate. It states, ‘It is not part of the flat owner’s duty to apply for completion certificate.’ The housing complex is on Kailash Ghosh Road.

The flat owners also complained that the builder had promised but failed to provide several amenities, including a playground, community hall and a lake on the adjacent land, which never existed. I. The builder had submitted that since the flat buyers have taken possession of their properties on as is where is basis, they are not entitled to any facilities.

The SC held that flat owners, by registering their properties, have not given up any right on amenities not provided by the builder. “It was the duty of the NCDRC to set things right,” it said.

“We are constrained to observe that the respondents (builders) have been let off by the NCDRC in a manner contrary to law. This is a fit case where the grievance of the appellants (flat owners) should be referred to NCDRC for re-consideration of the grievance as per law. It is ordered accordingly,” the bench ordered. However, the flat owners were also faulted for taking possession even before the builder obtained the competition certificate for the housing complex. “Undoubtedly, they are also on the wrong side of the law by taking possession of their respective flats without completion certificates, whatever the compulsion may be,” the Supreme Court said.