Maharashtra Government Plans to Grant OCs to 25,000 Housing Societies in Mumbai

The Maharashtra government is preparing to resolve one of Mumbai’s longest-pending housing issues, the lack of Occupation Certificates (OCs) for thousands of cooperative housing societies. In a city where homebuyers often struggle with incomplete paperwork, the absence of an OC can create hurdles in securing loans, approvals, or even basic civic amenities.

To address this, the state is planning a new policy framework that could help nearly 25,000 housing societies finally obtain their long-overdue OCs. A government resolution (GR) is expected in October 2025, outlining rules, processes, and relaxations under a proposed amnesty scheme.

What is an Occupation Certificate (OC)?

An Occupation Certificate is a legal document issued by the municipal corporation once a building is constructed as per the approved plans and is deemed fit for occupancy.

Why it matters:

• Validates that the structure meets safety and planning norms.
• Legally required for residents to occupy the property.
• Necessary for availing bank loans, utilities, and redevelopment approvals.

Without an OC, homeowners live in a legal grey zone where property ownership rights may not be fully recognised.

Also Read: No OC required for 1,200 sq ft homes in Bengaluru as the government relaxes rules

Why Do Many Housing Societies in Mumbai Lack OCs?

The absence of OCs is not a new problem in Mumbai. Several factors have contributed over the decades:

• Non-compliance with building norms: Developers often made alterations or exceeded approved plans.
• Technical lapses: Minor deviations or missing documents delayed approvals.
• Cumbersome process: The complex approval system discouraged societies from applying.

The current scenario:

• Over 20,000 buildings in Mumbai have full OCs.
• More than 700 buildings have partial OCs.
• Nearly 25,000 housing societies are still functioning without one.

Issues Faced by Societies Without OCs

Living in a society without an Occupation Certificate comes with multiple challenges:

1. Financial Restrictions: Banks are hesitant to sanction home loans or mortgages on such properties.
2. Redevelopment Delays: Without legal clearances, redevelopment projects get stuck.
3. Utility Problems: Water supply, sewage connections, and electricity approvals may remain uncertain.
4. Legal Risks: Homeowners may face disputes regarding the legal validity of their property.

For middle-class homeowners, these issues translate into daily inconveniences and long-term uncertainty.

What Has the Maharashtra Government Proposed?

The Maharashtra government plans to roll out an amnesty scheme that simplifies the process of obtaining OCs for housing societies that have been waiting for years.

Key features expected:

• Simplified procedures: Societies will be able to apply with fewer technical hurdles.
• Penalty waivers: If residents apply within a stipulated timeframe, penalties may be waived.
• Premium on extra FSI or alterations: In cases where construction exceeds approved plans, a premium will be charged, but at discounted rates.
• Time-bound approvals: The GR is expected to set clear deadlines for processing applications.

The detailed rules and processes will be outlined in the official government resolution (GR) due in October 2025.

How Will Homebuyers Benefit?

This move by the Maharashtra government could unlock several benefits for homeowners and housing societies:

• Legal Security: Ownership rights will be formalised with a valid OC.
• Loan Accessibility: Banks and financial institutions will be more open to sanctioning loans.
• Redevelopment Ease: Societies will be able to initiate redevelopment projects smoothly.
• Better Amenities: Access to civic services like water, sewage, and electricity will become easier.
• Property Value Appreciation: Legal clarity often boosts real estate valuations.

Also Read: India’s Real Estate Sector May Reach $5–10 Trillion by 2047, REIT Share Projected at 50%

What to Expect Next 

The final guidelines of the Maharashtra government’s amnesty scheme are expected to be announced in early October 2025. Housing societies should begin preparing by:

• Collecting relevant documents such as old building plans and tax receipts.
• Consulting legal and architectural experts to assess deviations, if any.
• Staying updated on the application process once the GR is released.

This preparation will help societies act quickly once the scheme is officially launched.

Conclusion

The Maharashtra government’s decision to grant Occupation Certificates to around 25,000 housing societies in Mumbai could bring long-awaited relief to lakhs of homeowners. By simplifying the process, waiving penalties, and offering discounted premiums on excess construction, the state aims to provide legal clarity and restore confidence among residents.

If implemented effectively, the scheme could reduce bureaucratic delays, unlock stalled redevelopment projects, and enhance property values across the city. For homeowners, this policy marks a step towards finally resolving a decades-old problem and securing their rightful place in Mumbai’s housing landscape.