Living Without an OC? The Supreme Court’s Ruling Could Affect You

What is an OC and Why Should You Care?

You save for years, finally buy the place you’ve always wanted, and move in believing it’s your forever home. Then one day, you find out something no one warned you about: your building was never officially cleared for people to live in. It’s not just frustrating it’s alarming.

This is the reality many homeowners across India are now facing, all because of a recent Supreme Court decision that’s shed light on a document most people never think to ask about the Occupancy Certificate, often called the OC.

So, what is this certificate, and why does it matter?

Put simply, an OC is issued by the local municipality to confirm that a building has been constructed according to the approved plans, complies with all the safety regulations, and is fit to be occupied. It’s the final green light that says, “Yes, this place is legally livable.

If a building doesn’t have one? Then technically, no matter how long people have been living there, it’s not legally considered a safe or approved residence.

In July 2025, the Supreme Court backed a decision by the Bombay High Court that left many homeowners stunned. The court ordered residents living on the top floors of a building in Mumbai to move out. Why? Because those floors were built without approval, and the entire building never received its Occupancy Certificate.

That one verdict set off alarm bells far beyond Mumbai. Across states like Maharashtra, Telangana, Odisha, and Karnataka, the ruling hit home literally. In many of these regions, older buildings were put up years ago without proper documentation or approval. Now, with this legal precedent, thousands of families living in such buildings are left wondering: Could we be next?

What This Means for Homeowners

The Supreme Court’s decision has really put a spotlight on some serious risks. If you’re living in—or thinking about buying a flat in a building that doesn’t have an Occupancy Certificate, here’s what you need to know:

• There’s a real chance you could be asked to move out, especially if parts of the building were added without permission.
   
• You might face problems getting basic services like water, electricity, or gas connections.
   
• Banks are unlikely to give home loans for these properties, which means selling your flat later could become a major headache.
   
• Insurance companies may refuse claims, and getting important clearances or No Objection Certificates (NOCs) could become a real struggle.
   

At the end of the day, this isn’t just about legal technicalities, it's about feeling secure in the place you call home.

What Can You Do? A Simple Checklist for Homebuyers and Owners

Whether you’re buying a new home, already own one, or are part of a housing society, here are some steps you can take to protect yourself:

• Ask for the Occupancy Certificate (OC). Don’t just assume it’s there—ask your builder or the housing society for a copy. It’s important!
   
• Check for the Completion Certificate (CC). This usually comes before the OC, and without it, the OC won’t be issued.
   
• Do your homework. Make sure the property follows all local building rules and there are no legal red flags.
   
• Look into regularization options. Some states allow older buildings to be legalized through special one-time schemes so keep an eye out and act fast if that applies to you.
   

Taking these steps now can save a lot of trouble later.

These days, when it comes to new residential projects, an Occupancy Certificate isn’t just a formality, it's a must. Buyers are asking for it upfront, and rightly so. Developers, especially in cities like Pune and Hyderabad, are catching on. Many are now going the extra mile to ensure all permissions and paperwork are in order before handing over the keys.

For older buildings, though, it’s a different story. The landscape has changed, and now many long-standing housing societies are feeling the heat. To stay compliant and protect residents, they’re starting to take real action:

Some are bringing in professionals to do full building audits, spotting any potential structural or legal concerns.

Others are consulting experts to see what upgrades or retrofitting might be needed to meet current safety norms.

And in many places, residents are banding together to start the legal process of regularizing their buildings, something that might not have felt urgent before, but now can’t be put off.

It’s not always easy, but taking these steps is becoming more necessary by the day for safety, for legality, and for peace of mind.