Only 4% of Bengaluru buildings have legal occupancy certificates: Nagamohan Das commission

A one-man inquiry by the Nagmohan Das Commission reveals only 4.15% of BBMP-approved buildings have occupancy certificates, exposing regulatory lapses, revenue loss and a widening gap between approvals and legal habitation.

A startling mismatch between approvals and legal occupancy has been exposed in Bengaluru: while the Bruhat Bengaluru Mahanagara Palike (BBMP) approved 36,236 building plans by May 2025, just 1,504 of those buildings hold occupancy certificates (OCs), the mandatory clearance for lawful habitation. The one-man Nagmohan Das Commission terms this a systemic failure with far-reaching consequences for governance, safety and revenue.

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What the commission found:

•    Only 4.15% of approved buildings have OCs, a figure the commission says signals serious regulatory breakdown.
•    The town planning department showed lapses in process and record-keeping; investigators report incomplete data from BBMP and warn actual figures could be worse.
•    The panel recommended disciplinary action against officials and flagged loss of revenue that accompanies unregulated occupation.

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Why so many occupied buildings lack OCs:

Sources say reputable builders who comply tend to secure OCs, the 4.15% likely reflects them, while many smaller plot owners skip the formal OC process. The BBMP Act allows property tax to be collected even from occupied structures without an OC or completion certificate, which reduces the municipal incentive to enforce OCs strictly. A provision that once allowed higher tax on such non-compliant buildings was removed, softening the penalty for non-compliance.

The issue is sharpened by a Supreme Court ruling in December 2024: essential utilities such as electricity, water and sewage must not be provided to buildings lacking valid completion or occupancy certificates. That judgment was intended to curb illegal construction, but it also puts many occupants and owners in a bind, particularly where OCs are scarce.

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Facing enforcement and political realities, the now-dissolved BBMP suggested the government consider waiving the mandatory OC requirement for buildings on plots smaller than 1,200 sq ft. The state government has not yet decided. If approved, the move could regularise many small occupancies but would also complicate compliance with the Supreme Court’s utilities ruling.

Where the problem is worst:

The commission notes pronounced disparities across BBMP zones, especially in the north, where the gap between plan approvals and OC issuance is unusually large. This geographical skew raises questions about uneven enforcement and oversight.

Many builders argue that current byelaws are too stringent, claiming full compliance often requires surrendering nearly 20% of plot area for setbacks, open spaces and other norms. They urge relaxation of norms, particularly for plots between 1,200 and 10,000 sq ft, saying that modest easing would encourage formal compliance rather than informal occupation.

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