Is Campa Cola only illegal structure in India? Are judiciary, government and administration serious about illegal structure?

Good morning friends,

I have been following the news about Campa Cola society of Mumbai for a very long time. I was wondering so many media attention to this as the matter went to the Supreme Court and Supreme Court also did not take a strong decision on this. Supreme Court neither ordered to have probe against the BMC officers who are neck deep corrupt nor against the builder. All the builders have died by now and the people only suffering are those who purchased the flat. Let me start with the main issues and other details?

What is the campa cola issue?

Campa Cola Compound is an apartment complex in the southern part of Worli in South Mumbai, India. The Campa Cola Compound was constructed on land leased to Pure Drinks Ltd in 1955, which was permitted by B.M.C in 1980 to develop it for residential purposes. Pure Drinks along with unscrupulous builders, Yusuf Patel, B.K. Gupta and P.S.B Construction Co erected seven buildings, two of which were high-rise buildings of 17 and 20 stories. During the construction period, the authorities issued notices to the builders to stop work. The builders were fined and they paid the penalty and resumed work. After the construction was completed nobody prevented the buyers from occupying their apartments or the buildings from forming co-operative housing societies. It is reported that initially, when the buyers purchased the flat, the builder told that they will get OC (Occupancy Certificate) in due course of time. Unfortunately, they never got it. 

Since 2005 the residents have been in litigation with B.M.C. trying to prevent the B.M.C from razing the building. The society rose to national attention because of a court judgment that deemed construction beyond five floors illegal and called for razing it down. The society is occupied by around 230 families who have been residing there for over 25 years. It has seven buildings namely Midtown Apartments, Orchid Tower, Patel Apartments 7A & 7B, Esha Ekta Apartments, BY Apartments & Shubh Apartments

So what is this Occupancy Certificate and why is it so important?

Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws. Local bodies like MCGM issue Occupancy Certificates. Without the Occupancy Certificate, it is difficult to get the water and sanitary connection. The Banks and Financial institutions do not sanction loans against the flat unless the Occupancy Certificate is not issued by the concerned authorities.

Obtaining Occupancy Certificates is an essential requirement under the MOFA (Maharashtra Ownership Flat Act) and the flat buyers cannot legally occupy the same, unless the Occupancy Certificates is obtained by the Developer. If the flats are occupied by the buyers without Occupancy Certificate, the Mumbai Municipality can ask for eviction of their flats or have heavy penalties levied on them.

There are instances where the Occupancy Certificates are delayed or not issued on account of violation of building laws which are increasing day by day. Though the buyers have spent their life time hard earned money on the project with a dream of owning a flat, they could not occupy the flat for want of Occupancy Certificate. They suffer for none of their faults and the Developers dilly dally the satisfactory explanation for failure to procure the Occupancy Certificate.

Developers having soft connections easily manage to escape through various loopholes in the law. Having invested precious money in such buildings and after waiting for many years to get an occupancy certificate, the buyers occupy the houses for fear that they may lose the property. Instead of losing their long awaited property, they prefer to occupy the flats without power, sewerage connections and pay twice the water charges and a higher property tax.

The ill-observance of MRTP/MCGM/DCR rules and guidelines are overlooked by the sympathetic officials of the MCGM and the plans so submitted, are sanctioned without verifying the eligibility or its conformity with the Development Agreements.

At times, the Projects are completed and the Occupancy Certificates are issued without the proper inspection carried out by the MCGM officials or taking pains to verify whether the actual measurement of the constructed areas tally with the final plans submitted.

The flat buyers on the assumption that things were happening to their satisfaction, performed house- warming ceremonies and took possession of the flats. When they were about to move in, the scandalous Developer revealed the shocking news that even though he had constructed the apartments and houses to their liking, the Civic Authorities were not issuing Occupancy Certificate on one pretext or the other.

Another Developer constructed small flats aiming the middle income group. However, the Civic Authorities refused to issue Occupancy Certificate due to blatant deviation from the approved plans. In this case, the Developer got the plan approved for construction of 4 dwelling units – 2 on the ground floor and 2 on the first floor whereas he, Instead of constructing 4 dwelling units, constructed 6 dwelling units. The buyers who have invested in the flats are now desperate, as they would lose their money and the flats if the Civic Authorities decide to demolish the unauthorized structure.

The Authorities issue Occupancy Certificate only after completion of the entire construction as per the rules. The Financial Institutions are refusing to lend in absence of Occupancy Certificate or No Objection Certificate from the Civic Authorities.

The net result is that not only the Developer is losing money as many flats remain unsold but also the buyers who have purchased the flats, have to pay interest to the Financial Institutions. The Financiers too face difficulties in getting back the loan installments.

The Civic Authorities are to be blamed as their Inspecting Officers do not carry out periodic and surprise checks at the construction site. In case of deviation they should take the Developer to task in the beginning itself and not at the end of the construction.

Few of the reputed Developers follow the rules and regulations; but majority do not. They dishonor all the laws framed by DCR, MRTP, MMRDA, MCGM etc.

The ill fate of Mumbaikers is that the MCGM has recently admitted its ignorance about how many buildings in the Mumbai possess an Occupation Certificate and how many do not. A Senior Civic Official confessed that Corporation does not have any up-to-date data. He further added that the Country's Premier Civic Body does not have a system in place to track the Developers who violate rules and hand over possession to buyers without first procuring the mandatory Objection Certificate.

The buyers are also to be blamed as they do not check the background of the Developer and his track record, nor they check before taking possession whether the building is according to the sanctioned plan and the amenities provided are according to the Sale Agreement. As per the law, one cannot enter a flat or building without receiving an Objection Certificate.

As per the norms of Building Proposals Department, action can be initiated against such occupants by slapping a notice under Section 350 (A) of the BMC Act for occupying premises without an Objection Certificate. It is must for any flat buyer to inspect and verify all the required documents or else, face various problems at a later stage.

Source: http://www.redevelopmentofhousingsociety.com/index.php/110-why-occupancy-certificate-is-important

Now, the question is Do all buildings in Mumbai have CC and OC of the buildings? Is it lapse from Municipal Corporation of Greater Mumbai (MCGM) or BMC due to lack of knowledge and manpower or something else?

Well, the answer is no. 

I do not know how much knowledge the supreme court and high court judges have about corrupt practices of the BMC officials and the illegality of the building constructions in Mumbai, Thane, Bhiwandi, Dombivli, Kalyan, Mira Road, Bhayandar, Vasai, Nalasopara, Virar and other Mumbai metropolitan areas including Vashi, Kharghar, Taloja, other part of Navi Mumbai and Panvel. 

I have experience with these b....ds one of the most corrupt and vulture BMC employees. Even if you change a small interior in your home and office without touching the base and structure, these vultures are well aware about it and without taking hefty bribes, they do not go away. Anywhere in Mumbai, if you want to start interior furnishing work of your office, you have to pay 20% of the cost as a bribe to the BMC officials. If you do not do so, they will break whatever money you have put. They do not take money directly and it is paid though a specified agent who charge additional fee. The hierarchy is so strong that from the commissioner to peon, everybody has their cut. This 20% is distributed as per the system. Here, we are talking about a legal things, now imagine how much they earn for allowing illegal constructions.

Supreme court said that while buying the flat, the buyers were aware about illegality, so this decision is for deterrent effect. Has really BMC become serious to stop building without OC and how many illegal constructions have stopped?

This is another bullshit. 

If the residents were aware about the illegality, the BMC and sub registrar's office too who charged stamp duty and registration charges. Then why did not they inform about it in the past? When the builder paid penalty for construction, at the same time why BMC did not inform that it cannot be regularised and why did not they destroy the construction? Today, the BMC is saying they are following the supreme court direction. Then why supreme court is silent and not asking all the illegal/ building without OC for such construction. 

Let me give you few example of illegal buildings in Mumbai/ the building without OC and still standing. 

1. Business Suite 9, S V Road, Near Celejor cake shop, Santacruz (West). This commercial building yet to get the OC but standing for almost 2 years. People have already started using the premises

2. Laxmi Vishnu Complex, College Road, Beside Vidyashram Post Office, Dhamankar Naka, Bhiwandi, Thane, 421305. This whole building is standing in forest land and despite of complaint to Bhiwandi Nizampur Municipal Corporation, no action has been taken. Surprisingly, the building has occupants like Andhra Bank (A government Bank) and a school standing on it. 

3. P. Tech Valley, Mankoli Naka, Taluka: Bhiwandi, Thane - 421302 (I have filed a police complaint 6 months back to Thane Police Commissioner and theyhave not taken any action so far, now whom will you blame?)

4. Mahavir Patwa Developers multi acre project at Village Kharbao, village: paye, Village Kaman, Taluka: Bhiwandi, Dist Thane where the flats were constructed on industrial plot not on residential NA plot. Thane Collector office purposely do not update land records for years due to its corrupt practices and even do not reply to mail and letter sent. 

These are just two examples you will find many such other.

So am I justifying illegal construction?

No. What I am trying tell that when there is matter pending in the court on thousands of illegal building standing in Mumbai and Thane and government regularising them through ordinances, why supreme court is silent? Why action only against the Campa Cola compound? Why there is no action against slumdwellers occupying 60% of the city's space? Is it because Campa Cola has significantly no vote bank whereas all these illegal constructions in Mumbai Metropolitan Region has a larger vote bank? Why Supreme court is silent on this.  I do not justify the illegal homes but what about an illegal construction being erected in somewhere part of the city? About the buildings without OC? Why is not media focusing on darker side of the city and the illegal constructions? 

I think if 70% population living completely illegal building gets home for free and no government action, then the residents of Campa Cola also deserve a relief. If Supreme Court is really concerned about illegal homes, then it should immediately order an investigation to wealth of ministers including urban development ministers in Maharashtra, BMC Commissioner and every single officers wealth accumulations and punish them immediately within a year sending strong signals. I know that is never going to happen. In the interest of politician, bureaucracy and an inefficient judiciary, those who invested their whole life's income for a dream home going to be looser and going to lose everything. 

For information of general public, you cannot buy a 1 BHK home in livable locality in Bhiwandi, Badlapur, Titwala, Ambernath and now Neral unless you can fetch out at least 20 lakhs (These areas are 50-80 KMS away from Mumbai, main hub Andheri, BKC, Fort, Dadar where job available) and for that you must have salary of at least Rs. 40000 take home per month. Forget about buying home in Thane, Mulund area. If you want to buy home in Andheri too, your salary should not be less than Rs. 4 lakhs per month. 

I do not know outcome of my post but I am sure, I will be able to force few people to think. The Campa Cola issue is not the result of illegal homes. It is result of inefficiency in our law, our judiciary (I cannot blame them as it is not their primary responsibility), governance and bureaucracy. 

Govind

Mumbai

June 22, 2014 a