In the mean time, the apartment purchasers on the assumption that things were happening to their satisfaction, performed house-warming ceremonies and took possession of the flats. When they were about to move in, the builder revealed the shocking news that even though he had constructed the apartments and houses to their liking the authorities were not issuing occupancy certificate on one pretext or the other.
Another builder constructed small flats targeting the middle income group. The authorities, however, refused to issue occupancy certificate because of deviation from the approved plan. In this case, the builder got the plan approved for construction of 4 dwelling units, 2 on the ground floor and 2 on the first floor, However, he did some thing different in gross violation of the approved plan. Instead of constructing 4 dwelling units, he constructed 6 dwelling units. The persons who invested in the flats are now desperate, as they would lose their money and the flats if the authorities decide to demolish the structure.
It is not that only the flat owners are suffering. A few builders, who have a heart for the investing public, too face problems.
One such builder constructed 8 flats in accordance with the building regulations and bye-laws and approved building plan. He has completed 5 flat and 3 remains to be completed. The builder received full payment from five purchasers while the other three backed out. This has put the builder in a difficult situation. For want of funds, three flats remained incomplete and occupancy certificate could not be obtained as the authorities will issue occupancy certificate only after completion of the entire construction. The financial institutions refused to lend in the absence of occupancy certificate or no objection certificate from the authorities. The net result was that not only the builder was losing money but also the purchasers of the flats, who have to pay interest to the financial institutions. The financiers too face difficulties in getting repayment of loan installments.
The authorities in the scheme of things must be blamed for this state of affairs. The inspecting authorities do not carry out periodic and surprise checks at the construction site. In case of deviation, they should take the builder to task in the beginning itself and not at the far end of the construction. Majority of the builders follow rules and regulations but a few do not. They disobey rules and regulations and violate them.
This is a vicious circle, which only the government can break. Government must initiate immediate remedial action to stem the rot. The authorities should not be very rigid in granting completion certificates. If the builder has deviated a little more than the allowed percentage, the authorities may impose a penalty and regularize the building.
The investors too are responsible for this fiasco. They do not check the antecedents of the builder and his track record. Before taking possession, they do not check whether the building is according to the sanctioned plan and the fixtures are according to the agreement. Many do not demand occupancy certificate, parent documents, title deeds, deposit receipts from the builder.
The purchaser who has not collected the required documents has to face various types of problems at a later stage.