Bengaluru tribunal clarifies builder–buyer rights after occupancy certificate

Bengaluru Tribunal rules: once an Occupancy Certificate is issued, buyers must take possession—defects must be pursued separately under RERA

In a significant ruling that could reshape real estate disputes in Bengaluru, the Karnataka Real Estate Appellate Tribunal has held that once a builder secures an Occupancy Certificate (OC) from the competent authority and duly informs the buyer, the responsibility to take possession shifts to the buyer. From that point onward, claims for delay‑interest against the builder cannot be sustained merely because the flat has defects or incomplete fittings.

The tribunal clarified that construction flaws, missing amenities, or unfinished work cannot be cited as grounds to refuse possession while simultaneously demanding compensation for delay. Instead, buyers retain the right to raise separate complaints about such issues through appropriate legal forums under the Real Estate (Regulation and Development) Act (RERA). These complaints, however, are distinct from the obligation to accept possession once the OC is issued.

The ruling came in the case of Veena Ravishankar versus Relationship Properties Pvt Ltd, developer of a unit in Maple Tower, Park West, JP Nagar. Possession of the flat was contractually due by December 2019, later extended to June 2020, with further pandemic‑related extensions until 2022. After the builder applied for an OC in August 2022, the Karnataka RERA had initially ordered delay‑interest in favor of the buyer. This decision was overturned by the appellate tribunal, siding with the builder.

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For Bengaluru homebuyers, the judgment sets a clear precedent: once the OC is obtained and communicated, they are expected to take possession. Refusing to do so will generally bar future claims of interest for delay. Concerns such as poor finishing, carpet‑area disputes, or missing facilities must now be pursued separately, without linking them to possession rights.

The practical takeaway is that while buyers continue to enjoy protections regarding repairs, rectification, and accountability, possession can no longer be used as leverage after the OC stage. Legal experts believe this ruling will influence how future disputes are resolved, drawing a sharper line between the delivery of a property and its quality.

By distinguishing possession from defect claims, the tribunal has provided clarity that could streamline Bengaluru’s real estate market and reduce prolonged litigation.

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