New Delhi: Banks and NBFCs have been barred from offering loans against properties whose occupation or completion certificate is missing, according to a Supreme Court order. A bench comprising justices J B Pardiwala and R Madhvan issued pan-India guidelines citing “larger public interest”.
The bench directed authorities including local bodies in states and Union territories against issuing permits and licenses for carrying out a trade or business in unauthorised buildings. This will apply to both residential as well as commercial buildings, the bench order.
Why SC is cracking down on unauthorised buildings
The Supreme Court noted that unauthorised constructions pose a threat to the lives of occupants and those living in its vicinity. These buildings also affect the access to amenities such as water and roads as well as electricity. The apex court upheld the Allahabad High Court’s 2014 decision concerning the demolition of particular illegal structures in Meerut.
The Supreme Court bench noted that unauthorised constructions must be curbed with an iron hand. Violating the order will invite contempt proceedings apart from prosecution under relevant laws, the bench said.
“Each and every construction must be made scrupulously following and strictly adhering to the Rules,” the bench stated. The top court said in its order that officials who issued completion or occupation certificates for properties in a wrongful manner will also invite departmental proceedings.
Building development must conform to the zonal plan and modifications must be in line with the applicable rules while keeping larger public interests into consideration and its environmental impact, the bench said. The bench has also laid down that connections to utilities such as power, water and sewerage will only be offered after the owner produces a valid certificate of occupation or completion.
The Supreme Court has barred banks and NBFCS from issuing loans against properties whose completion or occupation certificate is missing. Such properties will also be denied water, power and sewage connections, the apex court said. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
