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The BDA has addressed a long-standing issue by revising its rules around occupancy certificates that previously required 10% of flats to be allocated for Economically Weaker Sections a mandate the High Court struck down as unconstitutional last year. Homebuyers who'd been stuck in limbo over such certificates can now move forward, with projects like Sobha Arena already receiving corrected OCs. This development ends a frustrating delay that began with a flawed circular, bringing welcome clarity and closure to affected buyers in the city.
The Bangalore Development Authority has finally acted on a long-pending issue that left several homebuyers without valid occupancy certificates. The BDA has issued a revised circular removing the requirement that 10% of residential units be reserved for the Economically Weaker Section (EWS) as a precondition for granting OCs. The clause was part of a previous circular that continued to cause delays, despite being struck down by the Karnataka High Court last year. Advertisement
The High Court had clearly ruled that the earlier circular violated Article 300A of the Constitution, which protects an individual's right to property. The court stated that denying occupancy certificates over a non-existent EWS allocation amounted to depriving owners of the legitimate use of their property without compensation. The judgment came after the issue was raised by the Karnataka Home Buyers Forum and later referred to the Lokayukta.
Many projects were affected as developers were unable to fulfil the 10% EWS quota due to lack of clear instructions or physical space. Despite this, BDA continued to delay rectification of occupancy certificates, citing the outdated condition in its system-generated approvals. This created a deadlock where buyers were stuck with incomplete documentation, even after full payment and possession.
One of the first beneficiaries of the revised policy is Sobha Arena, a residential project that had received an OC with a 10% EWS clause even though no such units existed. The BDA has now issued a rectified occupancy certificate to the project, aligning with the High Court's ruling and the updated policy.
The root of the problem began in 2023, when reports surfaced that builders were selling EWS-designated flats at market rates without actually constructing or allocating them. This led to legal scrutiny and public outrage, eventually culminating in the High Court's intervention.
Though the judgment came in 2024, the BDA took nearly a year to issue a revised circular that clarified developers would no longer need to meet the EWS quota for obtaining occupancy certificates in such cases. The new guideline now applies to all affected projects where the 10% EWS reservation had been wrongly enforced in the OC process.
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