Gurugram: When Rahul Sharma shifted into his three-bedroom apartment in a high-rise society near Dwarka Expressway two years ago, the flat was marketed as “ready to move.” The lifts were operational, families had already moved in, and maintenance charges were being collected regularly. But when Sharma recently tried to sell the apartment, he hit a roadblock — the project still did not have an Occupancy Certificate (OC).
“I was shocked. The builder kept saying the OC was under process. Banks refused to finance the buyer, and the deal collapsed,” he says.
Sharma’s case is far from unique. Across Gurugram — from Dwarka Expressway and New Gurugram to parts of Golf Course Extension Road — thousands of families are living in apartments that are ready to occupy but not legally approved for occupation.
What Is an Occupancy Certificate — and Why It Matters
An Occupancy Certificate is an official approval issued by the Department of Town and Country Planning (DTCP) or the Municipal Corporation of Gurugram (MCG). It certifies that a building has been constructed according to the approved layout plan and complies with safety, fire, environmental and infrastructure norms.
Simply put, OC is the final legal clearance that allows a buyer to lawfully occupy and own a property.
Without OC:
Registry can be delayed or denied, banks may refuse home loans, resale becomes difficult, permanent water and electricity connections may not be sanctioned.
Despite this, many buyers are handed over possession without being informed about the absence of OC.
Living without legal certainty
In sectors along the Dwarka Expressway, Southern Peripheral Road (SPR) and parts of New Gurgaon, multiple societies have residents who took possession despite the absence of OC. Buyers say they were assured by developers that the certificate was “under process” and would be received soon.
“We were told that OC would come within three months of possession. It has been over three years now,” said a flat owner in a high-rise society near Sector 84, requesting anonymity. “We are paying EMIs, maintenance charges and even property tax, but legally our homes are still unauthorised.”
Such buyers face several challenges—from difficulty in getting home loans sanctioned or transferred, to problems in resale and lack of permanent civic connections.
Why OCs are delayed
Town and country planning officials point to multiple reasons behind the delay in granting OCs. These include deviations from approved building plans, pending infrastructure work, non-compliance with fire safety norms, and outstanding dues related to external development charges (EDC).
“Many projects apply for OC without completing all mandatory conditions. In some cases, internal roads, sewage connections or fire-fighting systems are not as per norms,” said an official from the Department of Town and Country Planning (DTCP), Haryana.
Experts say that developers often push for possession to ease financial pressure, even when statutory approvals are incomplete.
“Handing over flats without OC has become a common practice, especially in high-demand markets like Gurugram,” said a real estate legal expert. “Buyers are rarely informed about the long-term risks.”
Impact on buyers
For homebuyers, the absence of OC has tangible financial and legal consequences. Banks are hesitant to approve loans or issue loan transfers for OC-less properties. Buyers also face difficulties during resale, as informed purchasers insist on complete documentation.
“Without OC, resale value drops sharply. Buyers lose bargaining power,” said a property consultant based in Gurugram.
Residents also complain about arbitrary charges imposed by developers and facility management agencies. Since the project is technically incomplete, Resident Welfare Associations (RWAs) are often not formed, leaving residents with limited control over maintenance.
“We don’t have a registered RWA because the OC is pending. The builder controls everything—from maintenance charges to access rules,” said a resident of a society on Sohna Road.
Civic services and safety concerns
Lack of OC also raises concerns over basic services and safety. In many such societies, permanent water and electricity connections are either delayed or arranged through temporary means.
Fire safety is another major issue. According to fire department norms, OC cannot be granted without a valid fire No Objection Certificate (NOC). However, residents allege that fire safety systems in some occupied buildings are either incomplete or non-functional.
“We have been living here for two years, but the fire NOC is still pending. It’s scary, especially in a high-rise,” said a resident from a society near SPR.
RERA and enforcement gaps
Under the Real Estate (Regulation and Development) Act (RERA), developers are prohibited from offering possession without completing all statutory approvals. Haryana RERA has, in multiple orders, directed builders to obtain OC and refrain from misleading buyers. However, enforcement remains a challenge.
“RERA orders exist, but execution is weak. Builders continue to delay compliance, and penalties are not always a deterrent,” said a consumer rights activist.
Buyers often hesitate to approach RERA or consumer courts due to fear of retaliation or prolonged legal battles.
What buyers can do
Legal experts advise buyers to avoid taking possession without OC, even if it means delaying their move. Those who have already taken possession should collectively approach authorities through RWAs or file complaints with Haryana RERA.
“Individual complaints have limited impact. Collective representation puts pressure on both the builder and authorities,” said a senior advocate dealing with real estate disputes.
Experts also recommend checking OC status on the DTCP and RERA websites before purchasing or registering a property, regardless of assurances given by developers.
A systemic issue
The prevalence of OC-less occupation highlights deeper structural problems in Gurugram’s real estate growth—rapid construction, speculative demand and weak regulatory enforcement.
As Gurugram continues to expand vertically and horizontally, experts warn that ignoring compliance today could lead to larger urban safety and governance issues in the future.
For now, thousands of families continue to live in homes they own—but which, on paper, remain incomplete.