In a significant pronouncement strengthening consumer rights in the real estate sector, the Supreme Court of India in Parsvnath Developers Ltd. vs. Mohit Khirbat held that a homebuyer cannot be compelled to accept possession of a flat unless the developer has obtained a valid Occupancy Certificate (OC) from the competent authority. The Court categorically ruled that failure to secure the OC constitutes deficiency in service , thereby disentitling the builder from enforcing possession or avoiding liability. This ruling reaffirms the statutory safeguards embedded in municipal laws and consumer jurisprudence , and it sends a clear message to developers: compliance is not optional. Factual Matrix The dispute arose when the developer offered possession of the residential unit to the allottee without having obtained the mandatory Occupancy Certificate from the local authority. The homebuyer refused to take possession on the ground that occupation without the OC would be illegal and ...
Your Legal Anchor in a Changing World.