Chennai: Out of all the necessary documents required for a property purchase, Commencement Certificate (CC) is the most important. The Commencement Certificate states the legality of the project.

Commencement Certificate is the permission given by the local municipal authority to the developer to start construction, after it is satisfied that the developer has received all clearances and approvals. “Commencement Certificate is a go-ahead from the certifying authority to the developer to commence construction of a project,” explains Akshat Pande, partner, Alpha Partners, a corporate and commercial law firm.

After the developer has obtained the required documents such as licenses, sanctions and permissions for the map, he has to lay the foundation of the superstructure and build boundaries before constructing the walls. He has to then inform the authority about the intention to start work on the building site.

“CC is issued by the Municipal Corporation which gives permission to the builder to start construction. This is issued when all terms and conditions are satisfied,” says Asha Nayar Basu, senior partner, S Jalan & Company, Solicitors & Advocates.

Within 15 days of receiving the application, officials of the town planning and engineering department of the authority inspect the site to verify whether the foundation work of the building is as per the sanction plan. If no discrepancies are found, the authority will issue the Commencement Certificate or else they will refuse to sanction the proposal stating the reasons for such refusal within 60 days. “There are many grounds for the authority to reject the sanction. Primary ones being that the proposed construction is not as per the approved maps and charts or as per the master plan,” says Puneet Upneja, associate partner, Alpha Partners. The Commencement Certificate is usually given in stages. In the first stage it is be given for construction up to the plinth level; in the second stage it is provided for construction up to the seventh floor; and, in the third stage it is provided for construction up to the fourteenth floor, and so on.

The certificate is mandatory for all apartment complexes in India. “Inspect the Commencement Certificate if the property is under-construction. You can ask for approval of drawings and plans of the project. It will make sure that the property is built on undisputed land,” says Basu.

If a developer does not obtain the Commencement Certificate before beginning construction of the building, he will not be provided the Occupancy Certificate (OC) by the authority. Without OC, the building cannot be occupied. If the residents do not possess an OC, the building is considered illegal and they can be evicted from the flats by the authorities and a fine can be imposed.

In case, the customer finds out later that the Commencement Certificate was not in place and his investment might get stuck, then he may claim suppression of facts, misrepresentation against the developer in a legal way. “Alternatively, the customer may approach the relevant authorities and inquire as to whether a particular developer or project has been granted the necessary approvals to start construction and pre-sales,” adds Upneja.

Preeti Sharma,