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No Loans or Utility Connections for Buildings Without Completion/Occupation Certificate, Orders Supreme Court

The Supreme Court of India, in a decisive ruling, has issued comprehensive guidelines aimed at curbing the rise of unauthorized constructions across the country. The Court stated that no loans, electricity, water, or sewerage connections should be provided to any building that does not have a valid completion or occupation certificate. The ruling makes it clear that financial institutions must verify the authenticity of these certificates before accepting any building as collateral for loans. Additionally, essential services like water, electricity, and sewerage should only be provided to buildings that have obtained the necessary certificates from the relevant authorities.


The Court's decision is part of a broader effort to address illegal constructions that pose risks to both safety and urban development. It emphasized that no business or trade license should be granted to unauthorized buildings, whether residential or commercial, and builders must ensure that possession of the property is only transferred to buyers after obtaining the requisite completion/occupation certificate.


Furthermore, the Bench highlighted the significant dangers of unauthorized buildings, including the strain they place on public resources such as electricity, groundwater, and access to public infrastructure. The Court also ordered disciplinary actions against officers responsible for issuing wrongful completion certificates, mandating that they be dealt with departmental.


The Court upheld the Allahabad High Court’s 2014 order to demolish illegal constructions in Meerut, underlining the importance of strict enforcement of building regulations. It also emphasized that any leniency in dealing with illegal constructions would have serious long-term consequences for urban planning and environmental protection. Regularization of illegal constructions, the Court noted, should only occur under exceptional circumstances after a detailed survey and with consideration for public welfare and environmental impact.


The judgment further directed the Registrar (Judicial) to send copies of the ruling to all state governments for strict adherence and to ensure that high courts take this ruling into account in relevant cases. Additionally, the Court emphasized that appeals related to the non-issuance of completion certificates or requests for regularization of illegal constructions must be resolved within 90 days, in accordance with existing laws. This move represents a critical step toward ensuring accountability, proper urban development, and the protection of public resources from the dangers of unregulated construction.


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