The Madras High Court has directed the Greater Chennai Corporation (GCC) and the Chennai Metropolitan Development Authority (CMDA) to obtain an undertaking from builders that possession of the building will be handed over to the buyers only after receiving the completion certificate from the authorities concerned. "Before issuing the building planning permission, an undertaking be obtained from the builder/applicant, as the case may be, to the effect that possession of the building will be entrusted and/or handed over to the owners/beneficiaries only after obtaining completion certificate from the authorities concerned," a division bench of Justices R Mahadevan and Mohammed Shaffiq said.
The bench was hearing a writ petition from M Rahamathunnisa and eight others, owners of the flats constructed by New Venus Developers Private Limited in Chennai challenging a de-occupation notice issued in December 2021 by the GCC. The bench said that upon personally inspecting the site, concerned officials must be satisfied that the building is constructed with the appropriate permission, and that there is no deviation in the construction in any manner, before issuing the completion certificate.
“If any deviation is noticed, action must be taken in accordance with the Town and Country Planning Act and the process of issuance of completion certificate should be deferred, unless and until the deviations pointed out are completely rectified,” the bench added.
Further, the bench gave directions to curtail the recurrence of any such incidents in the future. The bench also said that the banks/financial institutions shall sanction loans to the buildings only after production of the completion certificate by the parties concerned.