Odisha Govt Makes Completion Certificate (CC) or Occupancy Certificate (OC) Mandatory for Realtors to Handover Possession

Bhubaneswar:
In a move that is set to bring major changes to Odisha’s housing and real estate sector, the state government has made it compulsory for real estate developers to obtain a Completion Certificate (CC) or Occupancy Certificate (OC) before handing over possession of flats, apartments, or houses to buyers.

The new directive was issued by the Housing and Urban Development (H&UD) Department, following the directions of the Supreme Court. With this notification, the state has aligned itself with stricter compliance rules to regulate housing projects and curb unauthorized construction.

Why the New Rule Matters

For years, many homebuyers across Odisha have faced difficulties because developers handed over incomplete or unauthorized buildings without proper certification. This not only created safety risks but also legal complications, especially when residents applied for basic amenities like electricity, water supply, and drainage, or sought bank loans.

The new rule now ensures that:

• No builder or realtor can give possession of a property to a buyer without securing the CC or OC.

• Banks and financial institutions cannot sanction loans against any building unless these certificates are in place.

• Trade or business licences will not be issued for commercial or residential buildings that lack approval.

Simply put, homebuyers will now have an added layer of legal protection, and the rampant problem of unauthorized buildings in Odisha is expected to decline.

Legal Backing and Strict Compliance

The H&UD Department clarified that these directions will be implemented in line with the Odisha Development Authorities (ODA) Act, 1982 and the Odisha Town Planning and Improvement Trust Act, 1956, along with the rules formed under them.

Development authorities issuing building permissions will now also require developers to submit a formal undertaking. This undertaking must clearly state that the property will be handed over to buyers only after securing the CC or OC from the relevant authority.

In addition, builders will be required to display the approved building plan at the construction site for the entire duration of the project. Officials from the development authority will periodically inspect the site to ensure the construction matches the sanctioned plan. These inspections will be recorded to maintain official proof.

Action Against Deviations

One of the biggest issues in Odisha’s real estate sector has been deviations from approved building plans. In many cases, extra floors, extended balconies, or unauthorized changes were made without approval, leaving buyers in a vulnerable position.

Under the new rules:

• Construction must strictly follow the approved plan.

• If there is any deviation, legal action will be taken against the builder.

• The Occupancy Certificate will be delayed until the builder corrects the deviations.

This means developers can no longer bypass the system by completing unauthorized work and later trying to regularize it.

Impact on Utilities and Services

Another major reform is the link between certificates and utility connections. According to the notification, service connections such as electricity, water supply, and sewerage will only be given to buildings with a CC or OC. This step is expected to discourage unauthorized construction, as residents will not be able to move into a building that lacks basic amenities.

Similarly, no permission or licence for trade or business will be issued by authorities for buildings found to be unauthorized. This is especially important for commercial complexes, which often start operations without fulfilling compliance requirements.

Implications for Banks and Home Loans

The government has also brought banks and financial institutions into the compliance framework. Now, before sanctioning any home loan or loan against property, banks must verify whether the building has a valid Completion Certificate.

This measure aims to protect both buyers and lenders from risks associated with illegal or incomplete constructions. Earlier, many buyers unknowingly purchased properties without CC or OC, only to face trouble later when banks refused loans or when authorities took action against the property.

Expert Opinion

Real estate expert Bimalendu Pradhan, who had filed the petition in the Supreme Court leading to this order, welcomed the move. He said the step will be a major check against unauthorized construction and a relief for thousands of homebuyers in Odisha.

Pradhan also pointed out that as per the new norms, both builders and government officials can face strict action if any deviation is found in construction after the issuance of the Occupancy Certificate. This provision ensures accountability on both sides and reduces the scope of corruption or negligence.

What It Means for Homebuyers

For people planning to buy a home in Odisha, this decision brings relief and security. Going forward, buyers should:

1. Ask for the Completion or Occupancy Certificate before taking possession.

2. Verify that the building has approvals under ODA Act norms.

3. Confirm that the builder has displayed the approved plan at the construction site.

4. Check loan eligibility with banks, as lenders will now demand CC or OC before sanctioning.

This way, buyers can avoid legal complications and ensure that their investment is safe.

What It Means for Builders

Builders and developers in Odisha will now have to be more careful and transparent in their operations. They must:

• Complete the project strictly according to the approved plan.

• Obtain CC/OC before handing over possession.

• Cooperate with development authorities during inspections.

• Avoid any deviation, as it could delay project delivery and lead to penalties.

Though this may increase compliance costs for developers, it will ultimately enhance credibility and trust in the real estate market.