Maharashtra Unveils Revised OC Scheme to Regularise 20,000 Non-Compliant Buildings, Offering Relief to Over 10 Lakh Mumbai Residents

In a significant development for Mumbai's housing sector, Maharashtra Deputy Chief Minister Eknath Shinde has announced the implementation of a Revised Occupancy Certificate Scheme in the Legislative Assembly. The initiative is reportedly set to regularise over 20,000 buildings across the city and provide relief to more than 10 lakh residents who have been living in structures without official occupancy certificates for their properties.

According to government sources, the scheme aims to end years of administrative and financial distress faced by approximately 2.5 lakh families residing in these non-compliant structures.

Scope and Coverage of the Revised OC Scheme

The new policy is expected to apply to buildings constructed under various regulatory frameworks, including the BMC's Development Control Regulations, Maharashtra Housing and Area Development Authority (MHADA), and the Slum Rehabilitation Authority (SRA). Industry experts note that this comprehensive approach reflects the government's intent to address compliance issues across multiple planning authorities in a unified manner.

The announcement comes at a time when Mumbai's redevelopment drive is gaining momentum, with authorities increasingly focusing on regularising existing structures while promoting urban renewal.

Why This Scheme Matters for Mumbai Homeowners

Many of the affected buildings were reportedly constructed with minor deviations from approved plans, rendering them ineligible for official occupancy certificates. As a consequence, residents have faced several challenges including double property tax rates, elevated water and sewerage charges, and lack of legal recognition for their properties.

The absence of an OC has historically created significant hurdles in property transactions, home loan applications, and participation in redevelopment projects. Property analysts suggest that regularisation through this scheme could unlock considerable value for affected homeowners while improving their access to financial services.

Key Benefits and Financial Incentives

Premium Discount Structure

Under the revised scheme, residents submitting compliance proposals will reportedly be charged only 50 per cent of the prevailing ready reckoner rates in Mumbai for additional or non-compliant areas such as fungible or excess carpet area in their properties.

Time-Based Penalty Waivers

The scheme introduces a tiered penalty structure designed to incentivise early compliance. Proposals submitted within the first six months of the scheme's rollout will attract no penalty whatsoever. Submissions made between six to twelve months will reportedly incur a 50 per cent penalty based on Maharashtra ready reckoner rates.

Individual Flat OC Mechanism

In a notable departure from previous procedures, the BMC has been instructed to create a mechanism allowing individual flat owners to apply for and obtain an occupancy certificate independently, even if the rest of the building does not participate in the scheme. This provision is expected to provide relief to individual homeowners who have been unable to secure compliance due to non-cooperation from other residents or housing society management.

Non-Residential Structures Also Covered

The scheme reportedly extends its coverage beyond residential buildings to include schools, hospitals, and commercial establishments that fall under the category of unauthorised structures. Government officials have indicated that this provision offers long-overdue relief to the education and healthcare sectors, which have operated under similar compliance challenges.

For property owners seeking to understand their property tax obligations in India, the regularisation could also result in normalised tax rates going forward.

Administrative Implementation Framework

The Brihanmumbai Municipal Corporation is expected to establish a dedicated working system to fast-track implementation at both building and unit levels. This structural reform is designed to address collective applications from housing societies and SRA buildings in Mumbai as well as individual applications from owners caught in legal or procedural complications.

Meanwhile, the Urban Development Department has been tasked with submitting a detailed proposal to expand this scheme to other municipal bodies across Maharashtra. If approved, similar relief could be extended to property owners in other cities facing comparable compliance issues.

Implications for Mumbai's Real Estate Market

Market observers suggest that the Revised OC Scheme could have positive implications for Mumbai's property market growth trajectory. Regularised buildings typically command better valuations and attract greater buyer confidence, potentially stimulating transactions in previously stagnant market segments.

The initiative aligns with Maharashtra's new housing policy goals of improving housing security and urban governance across the state. Homebuyers are advised to familiarise themselves with their rights under RERA regulations while navigating the compliance process.

A Long-Awaited Lifeline for Affected Residents

The Revised OC Scheme represents a significant policy intervention for residents of Mumbai's non-compliant buildings. By offering a structured, affordable, and penalty-free window for regularisation during the initial period, the government appears to be correcting historical planning delays while easing the financial and legal burden on millions of families.

With future expansion planned across the state and the MHADA continuing to transform Mumbai's housing landscape, this initiative could significantly improve urban governance and housing security in Maharashtra for years to come.

Disclaimer: This article is intended for informational purposes only and should not be construed as legal, financial, or investment advice. Property owners are advised to consult qualified professionals and verify all details with the relevant municipal authorities before making any decisions related to compliance or regularisation. Readers should independently verify the terms, conditions, and timelines of the scheme with official government sources.