The Supreme Court of India has made a landmark ruling emphasizing the rights and safety of flat buyers. Here’s the key takeaway: Flat buyers cannot be compelled to take possession of a property without a Completion Certificate (CC) and Fire Safety Clearance Certificate. The appellant filed the present Appeals under Section 23 of the Consumer Protection Act, 1986, read with Order XXIV of the Supreme Court Rules, to assail the correctness of the final judgement and order passed by the National Consumer Disputes Redressal Commission, as well as the order dated 30th October, 2023, passed on the Review Application No. 335/2023.
Key Aspects of the Judgment-
Mandatory Certificates: Developers must obtain a Completion Certificate and Fire Safety Clearance before offering possession.
Deficiency in Service: Offering possession without these certificates constitutes a deficiency in service under the Consumer Protection Act.
Buyer’s Right to Refuse: Purchasers have the right to refuse possession if these critical documents aren’t provided.
Legal Precedents: The ruling aligns with previous decisions like Debashis Sinha v. R.N.R. Enterprise and Treaty Construction vs. Ruby Tower Cooperative Housing Society Ltd.
Statutory Obligations: Laws like Section 4(5) of the UP-Apartment Act and Section 19(10) of the RERA Act mandate these certificates before possession.
Implications-
Enhanced Buyer Protection: Safeguards homebuyers from unsafe or incomplete properties.
Developer Accountability: Builders face legal consequences for non-compliance.
Transparency and Safety: Promotes adherence to regulatory and safety norms in real estate.
Advice for Homebuyers-
Insist on Certificates: Demand Completion and Fire Safety Clearance before taking possession.
Document Everything: Keep records of communications and agreements.
Know Your Rights: Leverage consumer protection laws and RERA provisions.
The Supreme Court of India has made it abundantly clear that flat buyers cannot be forced to take possession of a property without a Completion Certificate (CC) and Fire Safety Clearance Certificate. This landmark ruling prioritizes homebuyer safety and rights, holding developers accountable for obtaining these critical documents before handing over possession. The court’s decision emphasizes that offering possession without these certificates constitutes a deficiency in service under the Consumer Protection Act. Developers are now legally bound to comply, facing severe consequences for non-compliance. This judgment is a significant win for homebuyers, ensuring they receive safe and compliant properties, and promotes transparency and accountability in India’s real estate sector.
