In a major move to curb unauthorised constructions and bring greater accountability to Odisha’s housing sector, the state government has made it mandatory for builders to obtain a completion certificate (CC) or occupancy certificate (OC) before handing over possession of buildings to buyers.

The notification, issued by the Housing and Urban Development (H&UD) department in compliance with a Supreme Court directive, also bars banks from granting loans and authorities from providing trade licences or utility connections to buildings lacking these mandatory approvals.

“The directions will be strictly adhered in line with the Odisha Development Authorities (ODA) Act-1982 and Odisha Town Planning and Improvement Trust Act-1956 and rules made thereunder,” the department stated in its notification.

As per the notification, development authorities, while issuing building permission to a builder or applicant will collect an undertaking stating that the possession of the building will be handed over to the owner or beneficiary only after obtaining the completion or occupancy certificate from the authorities concerned. The builder/developer will also require to display a copy of the approved plan during the entire period of construction and the same will be inspected by the development authorities periodically to maintain an official record.

On the other hand, the construction must be taken up as per the approved plan. In the event of any deviation, action will be initiated as per the provisions of the law, while the issue of the OC will be deferred till the deviations pointed out are completely rectified.

Service connections such as electricity, water supply and sewerage will be provided to a building only after it is accorded the CC or OC. Similarly, no permission or licence for trade and business will be given by any authority to any building found to be unauthorised.

Apart from these provisions, the notification stated that banks and financial institutions will sanction loan against a building, as a security, only after verifying that it has the completion certificate. Real estate expert Bimalendu Pradhan, who had moved the Supreme Court in this matter, said the order will be of significant help in putting a check on unauthorised constructions in state’s real estate sector.

Pradhan said as per the norms, both builder and department officials could face action if any deviation is found in building construction after the occupancy certificate is granted.