Balancing Penalties and Regularisation: Insights on Maharashtra's OC Amnesty Scheme

Mumbai: The Maharashtra government's Resolution on Occupation Certificate (OC) Amnesty Scheme should strike a balance between penalising violations and encouraging regularisation, former MP Gopal Shetty said during a YouTube session decoding the policy on Monday.

Speaking at the online discussion titled “Decoding the new GR on OC Amnesty Scheme”, organised by the Real Estate Study Circle and moderated by Co-Founder Abhishek Chaturvedi, Shetty said the state’s decision to offer free Floor Space Index (FSI) up to 35% should be applied rationally while regularising unauthorised constructions.

If a building has violated FSI norms by up to 35%, no charges should be levied. For violations beyond that — say 50% — the free 35% FSI should be deducted, and penalties imposed on the excess. This ensures the state earns revenue while violators are penalised, without denying new benefits under OC application, Shetty explained.

He also urged housing societies lacking occupation certificates not to panic. Societies without OC should no longer fear punitive action. Instead, they should come forward, apply for OC and regularise their buildings under the amnesty scheme, he added, stressing the need for a simplified process.

The system must be streamlined so residents are not frustrated further. People have already suffered for years due to procedural delays, Shetty said.

The session saw participation from over 21,000 netizens, reflecting widespread interest and concern among housing societies across Mumbai and the Mumbai Metropolitan Region.

Advocate Ameet Mehta, a member of the OC Study Committee, was the key speaker at the session. Mehta explained that housing societies will get a six-month window to apply for occupation certificates without attracting any penalty as per the new GR. Thereafter, penalties will be levied based on government-notified percentages.

Mehta said that once standard operating procedures (SOPs) are issued, the OC application process is expected to become faster and more efficient. However, he noted that the study committee has sought clarity from the government on several operational aspects.

One of the key questions is whether the OC amnesty scheme will have a single-window clearance system or whether applications will have to be routed through multiple departments, Mehta said.

He also pointed out that the government resolution (GR) currently restricts the amnesty scheme to housing societies, a limitation that needs reconsideration. The OC amnesty scheme should be applicable to all types of buildings — residential as well as commercial, Mehta said.

The discussion highlighted both the opportunities offered by the OC amnesty scheme and the need for clearer guidelines to ensure smoother implementation on the ground.