A recent decision by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) mandating an Occupancy Certificate (OC) before issuing possession letters to homebuyers has sparked opposition from both developers and homebuyers. The CREDAI (Confederation of Real Estate Developers’ Associations of India) has urged UP-RERA to reconsider the order, arguing it could delay project completion and inconvenience buyers.
A new regulation by the Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) has stirred controversy in the state’s real estate sector. The regulation mandates developers to obtain an Occupancy Certificate (OC) before issuing possession letters to homebuyers.
This policy shift has drawn criticism from both developers and homebuyers. The CREDAI (Confederation of Real Estate Developers’ Associations of India) has appealed to UP-RERA to reconsider the order.
“The UP RERA needs to reconsider this decision in the benefit of homebuyers,” said Dinesh Gupta, Secretary of CREDAI Western Uttar Pradesh, according to a PTI report. He argues that requiring an OC before offering possession letters could significantly delay project completion timelines.
Homebuyers’ associations have also expressed concerns. While the OC requirement aims to prevent developers from handing over incomplete projects, some argue it could create unnecessary delays and inconvenience for buyers who are eager to move into their new homes.
“Offers of possession should solely signify readiness for handover,” said a CREDAI office-bearer, highlighting the potential disruption to pre-planned move-in dates. They also referenced a 2017 UP-RERA provision for “deemed OC,” allowing possession in projects with critical clearances like fire safety, electricity, and elevator approvals.
UP-RERA, on the other hand, views the OC requirement as a measure to curb arbitrariness by developers and protect homebuyers’ interests. They believe it ensures projects are habitable and meet minimum safety standards before residents move in.
The debate highlights the complex relationship between developers, homebuyers, and regulatory bodies in the real estate sector. Balancing timely project completion with ensuring proper infrastructure and safety standards remains a key challenge.
