About 19,000 Mumbai buildings lack OC; BMC amnesty scheme draws only one or two applications

About 19,000 buildings in Mumbai are estimated to have no occupation certificate (OC). However, only one or two applications have so far been received under the BMC's new amnesty scheme. Saying people are unaware of the scheme's eligibility, concessions and application method, the Practising Engineers, Architects and Town Planners Association (PEATA India) is holding a seminar for housing societies and flat owners.

The seminar will explain the scheme's provisions, benefits, eligibility criteria and application process as per the Urban Development Department's notification of December 11, 2025. Meanwhile, housing sector experts are criticising the scheme, saying flat owners bear most of the financial burden of violations committed by developers.

PEATA India president Yomesh Rao said the problem of buildings without an OC has existed in Mumbai for many years. According to an unofficial estimate, 19,000 buildings have no OC, excluding about 6,000 MHADA and SRA buildings. The BMC's conservative estimate is at least 4,500 buildings. "Including SRA buildings, that is, counting the 33(10) slum scheme and the 33(11) PTC scheme, there could be about 25,000 buildings in all," Rao said. He said that without an OC, there are difficulties in complying with rules, in property transactions and in obtaining civic permissions.

Keeping these difficulties in mind, the BMC introduced a standard operating procedure (SOP) for the amnesty scheme. Rao said that under it, eligible societies, landowners, developers and individual flat owners can apply for an OC through a set process. The scheme, in force since September 8, 2026, offers financial concessions in the first six months. Even so, only one or two applications have come so far, Rao said. He said that because of low awareness about eligibility, financial benefits, documents and the application method, many eligible owners do not know of the opportunity.

CA Ramesh Prabhu, founder-president of the Maharashtra Societies Welfare Association (MahaSEWA), said the new scheme repeats the mistakes of earlier schemes and adds new obstacles. According to him, the scheme has been launched for the third time, from September 2026. It applies only to residential units up to 80 square metres, the limit for regularisation is 15 per cent, a valid title deed and a fire NOC are required, and structures that cannot be regularised must be demolished. The application must be made through an architect on the AutoDCR portal online.

Prabhu said that if additional FSI is bought to regularise unauthorised construction, individual flat owners may have to pay a premium of Rs 10 lakh to Rs 20 lakh. In his view, the scheme looks like a revenue-collection exercise for the BMC rather than real relief. He also said there is ambiguity over whether the scheme applies to SRA, MHADA and MMRDA buildings. Prabhu said that to increase applications, the process should be simplified, obstacles removed and the premium cut to 10 per cent or less. MahaSEWA had asked the Chief Minister on September 14, 2021 to regularise more than 10,000 structures on payment of a penalty.

Adv. Shriprasad Parab, expert director of the Maharashtra State Co-operative Housing Federation Ltd, said the number of buildings without an OC is rising in Mumbai and the Mumbai Metropolitan Region (MMR). Developers repeatedly build in deviation from the approved plan, and flat owners then have to bear higher water charges, increased property tax and legal hurdles in redevelopment. Parab said the compounding provisions of the MRTP Act and the amnesty scheme offer a route to regularisation on payment of a penalty, but they are stopgap measures. He said developers responsible for violations and the agencies supervising construction should also be held accountable, and the entire burden should not be put on home buyers.

Parab has suggested a technology-based single-window system and traffic-light style monitoring to catch unauthorised construction early. Buildings would fall into three groups: green for those that follow the approved plan and rules, yellow (amber) for those with minor deviations needing correction, and red for those with serious violations needing action. He said the single-window system would increase transparency, speed up approvals and protect safe, legal homes. He cited Article 21 of the Constitution in connection with the right to a safe home.

An OC is a certificate issued by the competent planning authority after checking whether a completed building conforms to the approved plans and rules. Under its conditions, occupation of the building is permitted. An OC is not required to register a flat's sale agreement, but without one, buyers and societies may face legal and financial consequences.

The free seminar, on "Understanding the BMC's OC Amnesty Scheme", will be held from 5 pm on November 3, 2026 at Yogi Sabhagruha in Dadar East. PEATA India is the organiser. Societies and managing committees without an OC, landowners and developers seeking regularisation, individual flat owners, and architects, engineers, town planners and people in construction, redevelopment and real estate can take part. It will provide information on eligibility, financial concessions and the step-by-step application process.