The Bombay High Court has issued a strong directive against the City and Industrial Development Corporation of Maharashtra (CIDCO) for withholding the occupancy certificate (OC) of a Kharghar-based co-operative housing society for almost six years. The court not only termed CIDCO’s actions as “glaringly unreasonable and arbitrary” but also imposed a penalty of ₹50,000 on the corporation for its unjustified delay.
The Dolphin Co-operative Housing Society, initially formed with 17 members, obtained an allotment letter and construction permission from CIDCO in 2001. The society was granted a commencement certificate in 2016, following which it applied for an additional member and an occupancy certificate in 2017 and 2018. However, CIDCO failed to respond to these applications.
In an effort to resolve the issue, the society sought intervention from the state housing minister, who then requested CIDCO’s chairman and managing director to consider the case for the additional member. However, CIDCO’s estate officer rejected the request, citing that the New Bombay Disposal of Lands Act had no provision for the addition of new members.
Denial of Occupancy Certificate
On January 4, 2021, the society wrote to CIDCO, highlighting their predicament due to the absence of an occupancy certificate. The residents were unable to occupy their homes and were forced to live in rented premises while simultaneously repaying home loans.
However, CIDCO’s associate planner formally refused to grant the occupancy certificate on January 5, 2021, citing the absence of an estate No Objection Certificate (NOC) for 18 units. The court, after reviewing the matter, found that the estate officer’s deliberate inaction was solely responsible for the non-issuance of the NOC, making the refusal illegal.
Court’s Ruling and Penalty Imposed on CIDCO
The Bombay High Court condemned CIDCO’s arbitrary stance and ruled that an entire building’s occupancy could not be withheld simply because an additional member’s inclusion was disputed. The court observed that CIDCO’s insistence on an estate NOC, which it was not granting due to its own inaction, was an unacceptable approach.
In its ruling, the court directed CIDCO to issue the occupancy certificate to the Dolphin Co-operative Housing Society within one week. Additionally, it held CIDCO’s managing director and other responsible officers accountable and mandated them to collectively pay a fine of ₹50,000 to the housing society within two weeks.
This ruling highlights the judiciary’s commitment to ensuring that housing authorities do not act arbitrarily and that residents receive their due entitlements without undue delay.
