UP RERA's OC Rule Sparks Controversy Among Homebuyers and Builders

A directive by UP RERA mandating occupancy certificates before possession letters has sparked debate among real estate developers and homebuyers. Stakeholders argue the rule is unfair to buyers in delayed projects, while UP RERA insists it prevents promoter arbitrariness and disputes.

A recent directive by the UP Real Estate Regulatory Authority (UP RERA) has stirred controversy among major real estate developers and homebuyers in western Uttar Pradesh, particularly in Noida and Greater Noida. The rule mandates that builders must obtain an occupancy certificate (OC) before issuing possession letters to homebuyers.

The developers' association and homebuyers argue that the decision could adversely impact those involved in long-delayed projects. According to Dinesh Gupta, Secretary of CREDAI Western Uttar Pradesh, the rule would have been more appropriate for new projects. However, the blanket application affects ongoing projects lacking OCs due to various reasons, including unpaid builder dues.

Abhishek Kumar, President of NEFOWA, criticized UP RERA for enforcing rules without comprehending the ground realities, noting that the overlapping costs of EMIs and rents make it difficult for end-users. Despite opposition, UP RERA insists that the move aims to curb arbitrariness by promoters and eliminate related disputes, though stakeholders view this as detrimental to homebuyers in stalled projects.

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