Supreme Court Ruling on Occupancy Certificates May Impact Older Buildings in Odisha

Bhubaneswar: A recent Supreme Court judgment that upheld a Bombay High Court ruling on occupancy certificates (OCs) is likely to have a direct impact on the real estate sector in Bhubaneswar and the state, according to experts and industry insiders.

Bombay High Court, in its ruling in July, directed residents to vacate the top 18 floors of a 34-storey tower in Tardeo, south Mumbai, that lacked an OC. Challenging the order, the residents approached the apex court in August, which upheld the HC's decision. The SC stated, 'We are of the view that we should not interfere with a very well-considered, bold, and lucid judgment delivered by the high court.' However, it has asked the residents to approach the HC seeking more time to vacate the building.

Experts said the judgment will have a direct impact on the real estate sector in Odisha since many older buildings in Bhubaneswar and surrounding areas lack OCs as well as other necessary legal documents, making them 'unauthorised construction.' Housing and Urban Development Minister Krushna Chandra Mahapatra recently informed the assembly that there are 1,978 residential buildings in Bhubaneswar, out of which only 152 have OCs.

'There was literally no awareness about OCs for years, but now things are changing. Older apartments were built without adhering to the norms, leading to the current situation,' real estate expert Bimalendu Pradhan said. He added that the older buildings cannot obtain OCs or other such necessary certificates now. 'Only a regularisation method can sort things out,' said Pradhan, emphasizing that the safety of the buildings and its occupants should be the top priority.

City-based real estate developer Sangram Nayak echoed Pradhan's sentiments and said that around 1,800-odd apartments will have to be considered illegal if the current rules are followed. 'People living in these apartments can at any time be asked to vacate, just as it happened in Mumbai,' he said. Nayak stressed that a long-term solution is the need of the hour.

Residents of these older apartments argue that it is not their fault that their buildings lack OCs, as they were not aware of the rules and regulations when they occupied their flats decades back. 'The government and developers should have ensured that the rules were followed meticulously, be it now or then. Now the government should come up with a solution,' said Vikrant Swain, a resident of a Bomikhal apartment built in the 2000s.

The impact of this ruling is significant, as it highlights the need for stricter adherence to building regulations and the importance of regularisation processes for older buildings. It also underscores the need for better awareness and enforcement of building codes to prevent similar issues in the future.