BMC's New Policy to Resolve Pending OCs for 25,000 Mumbai Housing Societies

The Brihanmumbai Municipal Corporation (BMC) is set to take a bold step that could help residents resolve their difficult legal and civic issues after a long delay. By unveiling a new policy framework by the end of March, thousands of housing societies across Mumbai will finally be able to get their long-pending Occupation Certificates (OCs).

The draft policy, according to several sources, could make a significant difference for as many as 25,000 housing societies in Mumbai that have been operating without an OC for one or more years. Many of these buildings were constructed many years ago and have been continuously occupied despite lacking this essential municipal approval.

Sources indicate that the civic administration will likely submit the proposal to BMC's standing committee soon. Following the civic approval, the same will be forwarded to the Urban Development Department of the Maharashtra Government for the final nod.

This step follows a statement by the Maharashtra government in September 2025, which expressed the intention to enact a policy that would lay down clear rules and procedures for housing societies seeking Occupation Certificates.

Officials familiar with the development have stated that the policy will include an amnesty scheme, allowing housing societies to regularize their buildings by paying specified charges. Applications for obtaining an OC will be accepted within a fixed time frame under the scheme.

Once the standing committee approves it, the policy will be forwarded to the Maharashtra government's Urban Development Department for the final go-ahead, a BMC official said as per HT.

Under the proposal, the amount payable by housing societies will depend on factors such as the nature of deviations, the size of the building, and the extent of violations from approved building plans. The broader objective of the policy is to bring a large number of existing residential buildings into legal compliance and ensure that residents receive proper civic documentation for their homes.

One of the key discussions surrounding the policy has been whether the benefit should extend only to residential units or also include commercial establishments operating within housing societies. Gopal Shetty, former BJP Member of Parliament from North Mumbai, who headed the party’s committee examining the OC issue, said the matter was debated extensively.

“There were ongoing discussions on whether commercial units should also be given OC or not, along with residential units. However, now the decision is under consideration that OC should be given to all,” Shetty said.

If approved in its current form, the policy could extend benefits to both residential apartment owners and commercial unit holders within housing societies.

Civic representatives indicated that the proposal is nearing its final stages and could soon be placed before the BMC’s standing committee. Siddarth Sharma, a BJP corporator and member of the BMC’s law committee, said the administration is working towards ensuring that residents receive long-pending approvals without discrimination.

“The decisions are in the final stages, and we are expecting that the proposal of the policy will be put forward in the BMC's standing committee shortly in the next few days. The aim is to ensure that all the citizens, irrespective of whether they are commercial unit or residential unit owners, should get OC,” Sharma said.

He added that the policy may include a one-year window during which housing societies can apply for the certificate.

“The policy will be comprehensive, wherein we are going to give around one year's period to housing societies to come forward and apply for OC, during which they will not be levied any penalty. Further, to not discriminate, even commercial unit holders are expected to be given OC,” Sharma said as per HT.

An Occupation Certificate (OC) is the most important document that a municipal authority can issue to any building owner to legally authorize its use. The issuing authority ensures through document verification, physical verification, and other steps that a building is in line with the approved plans and meets all the norms according to the rules and regulations.

The OC serves as proof that the building can be safely occupied. Dwellers can face numerous legal and financial problems if the OC is not present. For instance, a lack of an Occupation Certificate can prevent a bank from providing a home loan or mortgage for a property. It can also stall the process of redeveloping an old building, as the legal part of approvals becomes complicated. Additionally, it can create issues with obtaining higher-level legal permissions and public distribution of water, drainage, and other civic services.

The availability of these services may be denied or subject to further approvals if the building does not possess the document. One of the major problems for thousands of co-operative housing societies in Mumbai is the lack of Occupancy Certificates. If the proposed BMC scheme is implemented, it could provide a permanent solution to this issue and bring regulatory clarity to the residential scenario in the city.