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NCDRC: Possession Without Occupancy Certificate Is Invalid, Orders Refund to Homebuyers

In a major ruling, the National Consumer Disputes Redressal Commission (NCDRC) declared that offering possession of flats without an Occupancy Certificate (OC) is not a legal offer. The order came against Jaipur-based Mantra Lifestyle Homes Pvt Ltd for its delayed project, Unique Apex Towers, in Jodhpur. The Commission directed the developer to refund the deposited amounts of seven homebuyers with 9% annual interest, escalating to 12% if unpaid within eight weeks. The NCDRC dismissed the developer’s claims of force majeure, noting that delays began years before COVID-19. It stated that obtaining Bajri or construction materials was the builder’s responsibility. The ruling reinforces homebuyers’ right to refuse possession without OC and demand refunds with compensation for prolonged delays.