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In a recent court order on Monday, a division bench comprising Justice Gautam Patel and Justice Kamal Khata declared that there is no provision for a flat-wise Occupancy Certificate (OC). The court was addressing a contempt petition filed by Najma Aslam Merchant against Darvesh Properties in Khar (West). Merchant, currently residing in Panchgani, accused the developer of violating the High Court's previous order.
Merchant had initially approached the High Court in 2022 seeking assistance in the redevelopment of Quettawala Residency, where she owned two flats (701 and 702) on the seventh floor. After a legal dispute, both parties agreed to the terms set by the High Court on March 16, 2023. According to the agreement, Darvesh Properties was required to obtain an OC for the redeveloped building by June 20, 2023. Failure to do so would result in compensation of Rs 10,21,475 to Merchant by June 30, along with an additional payment of Rs 240 per square foot for each flat from March 1, 2023, until the OC was obtained.
In the contempt petition filed last year, Merchant claimed that the developer did not acquire the building's OC within the specified deadline, entitling her to a sum of Rs 51,21,035. The developer argued that he had obtained an OC for Merchant's two flats by June 22, absolving him from any liability to pay.
Dismissing the developer's argument, the court emphasized that an OC cannot be obtained on a per-flat basis and is meant for the entire structure. The court also criticized the BMC for issuing a certificate against legal provisions, stating that the municipal corporation should not be misled into granting certificates contrary to the law.
The bench highlighted the significance of an OC, which declares a structure fit for human occupation with all basic facilities. It deemed it inconceivable that water supply could be limited to two flats on the 7th floor without extending to other flats on that floor or any flats above or below.
As a resolution, the High Court directed the developer to deposit Rs 51,21,035 with the court's register.
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