Mumbai Announces Amnesty Scheme for Over 20,000 Buildings Without Occupation Certificates

Published: December 12, 2025 | Category: Real Estate Mumbai
Mumbai Announces Amnesty Scheme for Over 20,000 Buildings Without Occupation Certificates

MUMBAI: With two final phases of local body polls on the anvil, the state government has announced yet another amnesty scheme for residents of over 20,000 buildings in Mumbai seeking occupation certificates (OC). They can now seek a 50% waiver on payments of premium charges on fungible area and floor space index (FSI) utilized. Additionally, societies applying for the OC will also get a complete waiver from the penalty levied over the delay in obtaining the OC if applied within six months of the announcement of the scheme.

This was among the various announcements made by deputy chief minister Eknath Shinde, who also heads the housing department, in the legislative Assembly on Thursday. Shinde said that the amnesty would offer respite to over 2.5 lakh families and over one million residents living in these buildings without OCs, classified as unauthorized occupants.

A building faces difficulties in getting OC, because of the violation of the FSI resulting in illegal construction, violation of the road setback compliance, and open space rules. This was illustrated in the case of Willingdon View CHS in Tardeo, where over 31 families from 17-34 floors had to vacate their flats on August 27, following a Bombay High Court order of July 15, as the society had failed to acquire a full OC and a fire NOC.

In the absence of the OC, the residents end up paying additional charges for sewage and water taxes levied by the civic body. They also find it a challenge to obtain bank loans.

Shinde said that an exemption of 50% will be offered on the prevailing ready reckoner rates while calculating premium charges for fungible area and additional use of the FSI, and added that the saleable and rehabilitation components will be separated in the redevelopment project to facilitate the OCs.

“If the flat owners wish to go for individual OCs, they will be allowed to do so through a separate process. Instructions have already been given to the Brihanmumbai Municipal Corporation (BMC) to initiate the process,” said Shinde.

He also said that the government is planning to implement the scheme in other municipal corporations too, adding that the same will be extended to schools and hospitals that feature in the list of unauthorized constructions.

Interestingly, similar schemes launched by the state government over the last two decades failed to elicit any response from flat owners due to many inter-departmental rigmaroles. “The irregularities and illegal constructions by the builders of such buildings are beyond regularization, and thus giving them go-ahead to regularize them becomes difficult. This time too, the government is doubtful about the response,” said an official from the urban development department as a note of caution.

Rehabilitating SGNP Tribals

The state government has launched a new policy to rehabilitate slum dwellers and tribals living in the core and buffer areas of the Sanjay Gandhi National Park (SGNP). In order to rehabilitate them, the government has identified a 93-acre land parcel within a five-kilometer radius from the park for the purpose.

Deputy chief minister Eknath Shinde said the scheme will help rehabilitate 25,000 slum dwellers and tribals living in SGNP for years. “The necessary amendments will be done in section 37(1)(k) of the MRTP Act. This will also help us in freeing up the valuable forest area in the SGNP, paving the way for conservation,” he said.

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Frequently Asked Questions

1. What is the main benefit of the amnesty scheme for buildings without Occupation Certificates in Mumbai?
The main benefit is a 50% waiver on premium charges for fungible area and FSI utilization, along with a complete waiver on penalties for delayed OC approval if applied within six months.
2. How many buildings and families are expected to benefit from this amnesty scheme?
The scheme is expected to benefit over 20,000 buildings and 2.5 lakh families in Mumbai.
3. What are the challenges faced by buildings without Occupation Certificates?
Buildings without OCs face difficulties such as paying additional charges for sewage and water taxes and challenges in obtaining bank loans.
4. Why is it difficult for some buildings to obtain an Occupation Certificate?
It is difficult due to violations of FSI, illegal construction, and non-compliance with road setback and open space rules.
5. What is the new policy for rehabilitating slum dwellers and tribals in the Sanjay Gandhi National Park area?
The policy involves identifying a 93-acre land parcel within a five-kilometer radius from the park to rehabilitate 25,000 slum dwellers and tribals, helping to free up valuable forest area for conservation.