In a recent directive vide Order No. 7316/U.P. RERA/Admin./2024-25, dated 29/05/2024, the Uttar Pradesh Real Estate Regulatory Authority (“UP RERA”) has mandated that builders/ developers must secure an occupancy certificate (“OC”) or completion certificate (“CC”) before issuing possession letters to homebuyers. In order to obtain the OC/ CC, the promoter must submit an application along with necessary documents. Only after obtaining such OC or CC, can possession letters be issued.

The promoter must send a written possession offer to the allottee via registered email, mail, phone, and SMS, once the OC/ CC is obtained. Offer of possession should be sent within 2 (two) months of receiving such OC/ CC. Additionally, homebuyers must receive a copy of OC/ CC at the time of possession. Such information regarding issuance of OC/ CC and subsequent offers of possession being made, should be displayed by the promoter at the project site and the head office.

Rationale: According to UP RERA, this measure was instituted “to prevent arbitrariness” by promoters in issuing possession letters to flat buyers. The goal is to eliminate disputes that often arise between promoters and buyers due to the premature or improper issuance of these letters.