Failure To Obtain Occupation Certificate By Builder Is A 'Deficiency In Service' Under The Consumer Protection Act

1. INTRODUCTION

Recently, the Hon'ble Supreme Court of India (“SC”), in the case of Samruddhi Co-operative Housing Society Ltd. (“Appellant”) vs. Mumbai Mahalaxmi Construction Pvt. Ltd.¹ (“Respondent”) has held that a real estate builder is under an obligation to provide the occupancy certificate (“OC”) to flat owners and failure to do so amounts to deficiency of service.

2. FACTS

A complaint² was filed by the Appellant before the National Consumer Disputes Redressal Commission (“NCDRC”) for refund of the excess taxes and charges paid by the Appellant to the municipal authorities, as its members had to pay a 25% higher amount on account of the property tax and an additional 50% towards the water charges, due to the deficiency of service of the Respondent on account of the failure of the builder to obtain the OC.