By a recent judgement, the Hon'ble Supreme Court of India (“SC”) has observed that the failure of a developer to obtain occupancy certificate is a deficiency in service under Consumer Protection Act, 1986.

The SC observed that the flat purchasers are well within their rights as ‘consumers' to pray for compensation as recompense for the consequent liability such as payment of higher taxes and water charges on account of lack of an occupancy certificate.

The SC also observed that the failure to obtain occupancy certificate is a continuing wrong and a fresh period of limitation begins to run at every moment of tie during which the breach continues.

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