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The Hindu
The Hindu
National
Legal Correspondent

Loans must be sanctioned only on production of building completion certificate, orders HC

In an attempt to save gullible flat purchasers from dubious builders, the Madras High Court has ordered that building completion certificates must not be issued without making sure that the construction is as per the approved plan. The court also ordered that banks should sanction loans only on production of the building completion certificates.

A Division Bench of Justices R. Mahadevan and Mohammed Shaffiq further wrote that electricity, power and sewage connections must be provided only after issuance of such certificates. If any deviation was found after the issuance of the certificate, the issuing authority must be subjected to departmental action, they added.

The series of directions were issued while disposing of a writ petition filed by a group of flat owners against Greater Chennai Corporation’s move to demolish unauthorised portions of their residential building at Kosapet, since it had been constructed in violation of the approved plan.

While dealing with the case, the judges found that the builder had obtained permission only to construct six flats on 2,070 square feet of land. The building was supposed to be stilt plus two floors. However, the builder had converted the stilt into a ground floor and constructed flats there too.

Further, he had raised third floor and constructed flats over there. Even on the first and second floors, there were Floor Space Index (FSI) and set back area violations. A neighbour had lodged a complaint against the building and pursued it through several legal battles to make the officials initiate action.

Taking note that several such unauthorised buildings were being constructed in the city thereby causing damage to planned development, the judges said, the practice of regularising unauthorised constructions should be discouraged in the normal course since it acts as an incentive to commit illegalities.

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