25,000 Buildings without OCs in Mumbai! Maharashtra Moves To Regularise Suburban Homes
Moneylife Digital Team 26 September 2025
The Maharashtra government has announced plans to introduce a new policy aimed at granting occupation certificates (OCs) to over 25,000 buildings across Mumbai’s suburbs. This move targets structures built under various bodies, including BrihanMumbai Municipal Corporation (BMC), Maharashtra Housing and Area Development Authority (MHADA), Slum Rehabilitation Authority (SRA) and others, many of which have been without formal certification due to past technical or administrative issues.
 
Ashish Shelar, guardian minister for Mumbai suburbs, revealed that a draft of the new policy is set to roll out from 2nd October. The policy seeks to address multiple hurdles that have prevented buildings from obtaining OCs. Among these are deviations from approved floor area, problems with building setbacks, changes in rules over time and instances where developers failed to dedicate spaces or flats reserved for public or civic use.
 
Under the scheme, the government will make it easier to correct past construction lapses, whether they are technical or administrative in nature. Buildings that had their OC applications rejected in the past because of issues such as setbacks or floor area deviations will now be considered for relief. Similarly, projects that were caught in limbo due to changes in regulations during the course of construction will also be regularised.
 
Housing societies will be allowed to apply for either full or partial OCs. For the first six months after the policy comes into force, applicants may also be spared penalties. However, in cases where additional floor space index (FSI) has been used, Societies will still be required to pay a premium. To ensure accountability, the entire process is expected to be transparent and managed through an online system.
 
The decision was taken after a joint meeting involving the BMC, urban development, revenue and cooperation departments. The announcement comes amid public concern following the Wellingdon Society case in Tardeo, where residents were asked to vacate parts of a building that lacked an OC — a situation which has drawn attention to broader enforcement and legitimacy issues across many similar developments in the city.
 
Activists, however, argue that the responsibility for ensuring compliance lies squarely with the municipal system. “It is the job of the Building Proposal department and the vigilance wing to keep track of whether a building has an OC or not. But enforcement has been weak, and in many cases, there seems to be a nexus between officials and builders,” said Mohammed Afzal, who has campaigned on the issue for years. 
 
He added that flat-buyers end up paying the price, forced to move into homes without OCs, risking heavy fines and suffering disruptions such as delayed possession or the need to shift mid-construction due to lack of alternatives.
 
While the new policy promises relief for thousands of home-owners, it has also sparked debate about fairness. Some residents point out that those who went through the long and often costly process of securing an OC earlier — including paying higher prices, penalties or navigating endless red tape — may feel short-changed. “For those who complied with the rules, it feels like an insult when later policies regularise non-compliant buildings,” is a common refrain.
 
This sentiment echoes a broader pattern in governance where retrospective amnesty schemes, whether for property tax, stamp duty or even income-tax, have often rewarded violators while leaving honest payers feeling penalised. Critics argue that while the scale of the OC problem is unique, with tens of thousands of buildings lacking certification until just a decade ago, the policy risks creating a perception of injustice among law-abiding citizens.
 
However, officials believe that for many residents who have lived for years in such buildings, the proposed policy will provide much needed legal recognition and relief.
Comments
hareshparekh2020
2 months ago
It was very good decision but one major point is of fsi whoever building have oc and extra space built by builder extra space are not required as building oc given with area can be increase as building oc are before 10 years
vsmlaws
2 months ago
Instead of punishing law enforcers and developers the govt is punishing the victims of both. Punish them within 3 months and u will see the receipt of oc in all buildings.
parimalshah1
2 months ago
First the authority makes laws to increase FSI and then development rights. Then 'babus' take bribe and pass many illegal structures. Few years later politicians try and regularise illegal structures. All make money making the citizens pay. And the corrupt babus go scot-free. Mera Bharat Manaan! Really? Judiciary too is often biased.
arunbhave
2 months ago
DANGER SIGNAL Standalone Parking's badly constructed by builders and/ or poorly maintained are seen collapsing lake pack of cards.
This is grave a threat and warning signal, safety hazard to resident families. Time to act before its too late OC must be made compulsory before handing over the Stand alone parking lots to the residents Also strict checking is required to be undertaken if all safety norms are followed or fulfilled properly.
abigail1
2 months ago
There can be no justice where criminals make the law . If there is a court ruling it must be implemented else people wil lose faith in the judiciary which is the last hope against corruption
iamshishir
2 months ago
If there is a strong political will to curb this for long term, the builders should be banned from selling ANY under-construction properties. The sale and registration of houses should be allowed only for OC received properties. The builders can fund their projects through borrowing channels. It will also encourage them to complete and deliver quality projects unlike what is happening now.

They force buyers to take fit-out possession and since majority / full payments are with the builders, buyers have no option but to take such possession and start staying in such apartments which haven't been delivered as per the agreed terms.

RERA is a toothless tiger, we all know.
elsaby62
2 months ago
The devil will be in the fine print and details
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