Occupancy Certificate in Mumbai: Why Buying or Renting a Flat Without an OC Is Riskier Than Ever

"The OC is just a formality, everyone in the building has moved in." If you hear that line while looking at a flat, slow down. In Mumbai, a missing occupancy certificate can affect your water bill, your home loan, your resale, and now even whether your sale can be registered.

What is an occupancy certificate (OC)?

An OC is issued by the planning authority, BMC in most of Mumbai, once a building is complete and built as per the approved plans. It certifies that the building is fit to be occupied.

What is the difference between OC and CC?

• Commencement certificate (CC): permission to start construction, issued at the beginning, sometimes in stages up to certain floors.
• Occupancy certificate (OC): permission to live in the building once it's complete. A part OC can be issued for some floors or wings.

A CC tells you the project began legally. Only an OC tells you it finished legally.

Is it illegal to live in a building without an OC in Mumbai?

In a July 2024 case about two wings of a building in Sion East, the Bombay High Court said occupying a building without an occupation certificate is not permitted in law, and directed the BMC to proceed against the occupants (The Law Suits). The same report notes possible penalties under section 353-A of the BMC Act, double water charges, difficulty getting water and sewer connections, and banks often requiring an OC before lending.

What changed in October 2026?

Maharashtra's 12 October 2026 circular tells sub-registrars to refuse flat sale registrations unless the required approvals are attached, which include the MahaRERA certificate or the OC, and the approved plan. Read our full post on the registration ban for unauthorised buildings.