Back to square one: Local municipal body issues 552 partial OCs in Bengaluru, sparks controversy again

After cancelling 2,000 partial occupancy certificates in a Sobha Ltd project, Bruhat Bengaluru Mahanagara Palike (BBMP) has issued 552 fresh partial OCs for Phase II Tower 4 (Maple) of the Parkwest project in Bengaluru.
The developer, Relationship Properties Pvt Ltd, is a fully-owned subsidiary of the Shapoorji Pallonji group.

"The proposal for the issuance of Partial Occupancy Certificate for the residential apartment building Phase I Tower 04 was approved by the Chief Commissioner dated December 5 and January 23," the order said.

Apartment owners staying on rent in the same project

Delayed for about two years, the tower has 428 units and 124 economically weaker section (EWS) units spread across 31 floors. Of a total of 11 towers, three have been completed and the rest are still under construction.

Jagdish Gujaran, an IT professional, and one of the homebuyers in Maple Tower, had invested over Rs 1 crore for a 2-BHK apartment. However, today he is staying on rent, paying Rs 40,000, in another apartment in one of the three completed towers.

He says that after the initial delay, he had no choice but to rent out an apartment in the same project until he received possession of the apartment.

Currently, there are around 157 Karnataka Real Estate Regulatory Authority (KRERA) orders. "However, most of the homebuyers have started to dispose of the complaints at Lok Adalat after the developer has agreed to give some compensation," Gujaran said.

Another homebuyer, who did not wish to be named, and is also staying on rent in one of the completed towers, said, "We agreed to the Lok Adalat to avoid further legal hassles at KRERA."

Experts dispute partial OC

In a ruling dated 11 March 2022 in Total Environment Building vs Verghese Stephen, the Karnataka High Court noted that there is no concept of partial OC under the RERA Act. Additionally, the court ruled, no person shall occupy a building until a complete OC has been granted.

Anil Kalgi, who tracks the real estate industry closely, said BBMP Byelaws 2003 says partial OCs can be given only to certain floors in an under-construction project. "Even Karnataka Building Byelaws 2017 mentions part OC that can be given to individual towers in a project," he added.

However, Kalgi said, partial OC is a concept that is not defined in the bylaws or KRERA Act.

Advocate MD Rajkumar, who practices at the Karnataka High Court, clarified the solution to the problem lies in a specific direction from either the courts or the municipal bodies.

"Especially given in Karnataka, OC is a contract between the developer and the local body. Homebuyers do not have any role to play here. And in such a scenario, different local bodies, including the high court, have passed mixed orders on the issue that broadens the grey area in this matter," Rajkumar added.

A spokesperson for the developer told Moneycontrol, "The reasons for delay are already made available in the public domain and we have nothing further to add. Needless to say, this includes delay attributable to COVID-19 for which extension has been granted by Karnataka RERA to all applicable projects." Speaking of the partial OC, the spokesperson added that the company has simply followed the laws applicable in the matter.

BBMP to ensure strict rules

Senior officials in BBMP, however, contended that BBMP Bylaws 2003 have provisions for issuing partial OC to a tower in an under-construction project.

Girish, Additional Director, BBMP (Town Planning), said, "Due to safety concerns, we do not issue floor-wise partial OCs. It can be hazardous to live on floors below an ongoing construction site."

BBMP officials say to maintain transparency in issuing OCs and other permissions, currently the municipal body is uploading every OC issued by them after 2010 on the BBMP website. The process is almost 95 percent complete, officials added.

Homebuyers can look at the details of their project OCs here.
Speaking about the cancellation of 2,000 OCs in a Sobha project last month, BBMP officials said, "The OC was issued based on fake documents filed with us. We have taken appropriate steps to rectify it."

Girish added that over the next few months the municipal body will integrate all software systems that hold data on permissions and OCs issued. "Then we will be able to strictly monitor every document submitted to us or every permission issued by us," he added.