Obtain commitment from builders before handing over houses: Madras HC

The Madras High Court has ordered the Greater Chennai Corporation (GCC) and the Chennai Metropolitan Development Authority (CMDA) to obtain undertakings from the builders that possession of the building will be handed over to the buyers only after receiving the certificate completion of the authorities concerned. .

“Before issuing the planning permit, a commitment is obtained from the builder/applicant, as the case may be, to the effect that possession of the building will only be entrusted and/or handed over to the owners/beneficiaries after obtaining the certificate of completion from relevant authorities,” said a divisional bench consisting of Justices R Mahadevan and Mohammed Shaffiq.

The bench had a written motion from Mr Rahamathunnisa and eight others, owners of the apartments built by New Venus Developers Private Limited here, challenging a vacancy notice issued in December 2021 by the Company.

The bench said that after carrying out a personal inspection by the officials concerned and ensuring that the building is constructed in accordance with the granted building permit and that there are no deviations in the construction in any way that is, the certificate of completion regarding the residential/commercial building must be issued to the parties concerned, without undue delay.

If a discrepancy is found, action should be taken in accordance with the Planning Act and the process for issuing the Certificate of Completion should be deferred unless and until the reported discrepancies are fully corrected .

Apparently moved by the plight of the applicants, who had invested huge sums of hard-earned money to purchase the apartments and were victimized through no fault of their own, the judges issued orders to reduce the repetition of such incidents in the future.

The bank also stated that banks/financial institutions will only authorize the loan to the building(s) after the certificate of completion has been produced by the parties concerned.