CREDAI-NCR Stresses 'Deemed Approval' Clause to Accelerate Real Estate Deliveries

- Emphasizes the Significance of Deemed Approval in Timely Project Delivery

Following the mandate by UP RERA requiring promoters to obtain an OC/CC before offering possession letters to all allottees, the Confederation of Real Estate Developers Association of India NCR (CREDAI-NCR) has reiterated the critical importance of the long-standing regulation concerning the approval process for Occupation Certificates (OC) and Completion Certificates (CC) in the real estate industry. According to this regulation, if a request for an OC or CC is not responded to by the relevant authority within a stipulated time frame, the approval is automatically deemed to be granted. This allows developers to proceed with offering possession to their customers, thereby ensuring timely project delivery.

The deemed approval clause has been instrumental in mitigating delays traditionally associated with obtaining OC/CC approvals. This regulation helps to avoid project hold-ups and alleviates financial strain on both developers and homebuyers. By ensuring a streamlined and predictable approval process, the deemed approval clause promotes efficiency and instils confidence among buyers in the reliability of developers.

Manoj Gaur, President of CREDAI-NCR, emphasized the importance of this regulation, stating, “We emphasize the importance of this regulation and remain committed to adhering to it. It is imperative for us to understand every aspect of the authority’s guidelines, and this clause, where the OC/CC is ‘deemed to be accepted’ if not responded to within the specified period, is no exception.”

In Noida's dynamic real estate industry, the process of obtaining OC/CC approval is a significant milestone in project completion. Developers apply for these certificates upon the completion of construction and after securing the necessary clearances, including fire safety, elevator safety, electricity, and water provisions. If the authority fails to respond within the stipulated period, developers are empowered to proceed with offering possession, ensuring that projects are delivered on schedule.

Salil Kumar, Director, Sales & Marketing at CRC Group, highlighted the importance of the deemed approval clause: "The deemed approval clause for the OC/CC is vital for regulation that ensures timely project delivery. Allowing developers to proceed with the offer of possession to its customers mitigates delays, instills confidence among homebuyers, and exemplifies developers' commitment to transparency in the realty market."

Yash Miglani, Managing Director of Migsun Group, echoed this sentiment, stating, "This proactive approach for the deemed approval clause for OC/CC within a stipulated time plays a huge role in maintaining the momentum in project completion. This regulation alleviates unnecessary delays, enabling developers to offer possession promptly and reliably. Hence, the clause is pivotal in maintaining the project timelines and upholding buyers' trust."

The emphasis on the deemed approval clause by CREDAI-NCR and leading developers highlights its significance in ensuring timely project completions, promoting transparency, and enhancing buyer confidence in the real estate market. This regulation is a cornerstone in fostering a reliable and efficient real estate development process, benefitting both developers and homebuyers.