No registration required if occupancy certificate of the building is obtained before August 2017: REAT

The Assam Real Estate Appellate Tribunal (REAT) has ruled that a housing project will not require to be registered if it received Occupancy Certificate or is deemed approved for occupation before 1st August 2017.

The ruling was given by the Tribunal today while deciding an appeal filed by M/s. Saraighat Builders Pvt. Ltd. against a decision of the Real Estate Regulatory Authority (RERA), Assam.

Section 3 of the Real Estate (Regulation and Development) Act, 2016 stipulates that the promoters of the real estate projects which were ongoing on the date of the commencement of the Act and for which a Completion Certificate had not been issued were required to make an application to the concerned RERA for registration of the projects within 3 months from the date of commencement of the Act.

Under the Guwahati Building Construction (Regulation) Act, 2010, and the Guwahati Building Construction (Regulation) Byelaws, 2014, it is only an “Occupancy Certificate” and not a “Completion certificate” that can be issued by the concerned civic authority. Further, as per the same Act, if the work is not inspected and an Occupancy Certificate is not granted or refused within 21 days from the date of receipt of the Completion Certificate from the owner, it shall be deemed that approval has been tendered, permitting occupation of the building concerned.

In Assam, Section 3 of the Real Estate (Regulation and Development) Act, 2016 came into force with effect from May 1, 2017. Therefore, an ongoing project was required to make an application to the RERA, Assam for registration within 3 (three) months, that is, by August 1, 2017.

In the case of M/s. Saraighat Builders Pvt. Ltd., the RERA Assam held that they had applied for an occupancy certificate for part of their project ‘Radha Niketan’ on June 30, 2017. Since on May 1, 2017, it was an ongoing project, it required to be registered. The RERA, Assam imposed a fine of Rs.2,50,000 on the promoter for the violation and directed him to apply for registration of the project.

While deciding the appeal against the order, the Tribunal held that if before initiating the process for registration within the three-month window, the concerned project or part of it receives an Occupancy Certificate or if the occupation of the building is deemed to have been approved, that part of the project/building must be considered to have been completed and would not require registration.

Setting aside the order of the RERA, Assam, the Tribunal held that the real estate project of the appellant did not require registration, as it received deemed approval within the three-month window, that is, before August 1, 2017. The Tribunal further clarified that the cut-off date for receiving Occupancy Certificate has to be August 1, 2017, and not May 1, 2017, which would take within its fold a deemed approval for occupation.

The order was passed by Justice (Retd.) Manojit Bhuyan, Chairperson, and Onkar Kedia, Member of Assam REAT.

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