Completion Certificate Does Not Absolve Developer Of Providing Functional Promised Amenities: Bihar RERA

The Bihar Real Estate Regulatory Authority has held that a Completion Certificate does not free a developer from its obligation to ensure that promised amenities and essential services are actually functional for homebuyers.

Inquiry Commissioner Sanjaya Kumar Singh said:

"Mere issuance of a Completion Certificate does not absolve the promoter of its statutory obligations to ensure actual and functional provision of promised amenities and services to the allottees. The obligations of the promoter extend beyond structural completion and include ensuring operational readiness of essential services such as drainage, sewage, and common facilities, etc."

The Authority also held that even if a Fire Department clearance were not required, the developer could not avoid responsibility for basic fire safety.

It held, "With regard to the firefighting system, the contention of the respondent that the same is not mandatory for a G+3 building does not appear to be acceptable as the requirement of obtaining a No Objection Certificate from the Fire Department does not absolve the promoter from its prime responsibility of installing the basic firefighting arrangement for ensuring safety of the residents of the impugned project.”

The ruling came in a complaint filed by Vikrant Vatsa, an allottee in Pari Construction and Developers Pvt. Ltd.'s Patna-based “Bijay Nanda Enclave” project.

Vatsa alleged that despite paying the full sale consideration and taking possession of his flat in November 2021, the project lacked proper drainage and sewage systems, firefighting arrangements, completed common areas, demarcated parking spaces, and an association of allottees.

Pari Construction argued that the complaint was premature because it had been filed before the expiry of the project's extended completion period and said it had already obtained a Completion Certificate in August 2024.

The developer also contended that firefighting arrangements were not mandatory because the project was a G+3 building and maintained that all facilities had been provided in accordance with the sanctioned plan and development agreement.

Rejecting the objection, the Authority held that the complaint disclosed a continuing cause of action because the alleged deficiencies concerned essential services and statutory obligations that continued even after possession had been handed over.

It said the Real Estate Act is beneficial legislation intended to protect homebuyers and enforce accountability upon developers, adding that a promoter's obligations extend beyond structural completion to ensuring essential operational services.

The Authority directed Pari Construction to complete all pending works relating to common areas, drainage, sewage systems and other basic amenities within 60 days.

It also directed the developer to demarcate and hand over parking spaces, if not already done, within 30 days, and to form the association of allottees and hand over relevant documents and common areas within 60 days.

Vatsa was left free to pursue compensation before the Adjudicating Officer.

For Complainant (Vikrant Vatsa): Advocates Punit Kumar.

For Respondent (Pari Construction and Developers Pvt. Ltd.): Advocates Sumit Kumar.