The Bombay High Court has imposed a fine of Rs 50 lakh on a businessman who rented out his shop to a bank in a redeveloped building in Kurla, Mumbai, without obtaining an occupation certificate (OC). The court directed the businessman to pay the fine within two weeks. The building, located in Pancharatna CHS in Nehru Nagar, has been found to be non-compliant with regulatory requirements due to the lack of an OC.
The court’s decision came after the businessman, Chheda, petitioned against a January 7 order by the Maharashtra Housing and Area Development Authority (Mhada) directing him to vacate the premises within 48 hours. Chheda’s advocate argued that the order was passed without notice or hearing, breaching the principles of natural justice. However, the court noted that Chheda had failed to provide a satisfactory answer to how he had inducted a bank into the premises without an OC.
The court observed that the bank’s officers had a duty to verify statutory compliances, including the OC and fire NOC, before opening the branch. The court also noted that for nine months, no meaningful steps were taken to vacate the premises, and instead, the ad interim order was used as a shield to continue the non-compliant occupation.
The court dismissed the petition with exemplary costs and directed the bank’s chairman/chief to initiate an inquiry to identify the officers responsible for commencing and operating the branch. The court also directed the bank to examine lapses, if any, by public officials or private entities that enabled the occupation and take action, including imposing penalties.
The court’s decision emphasizes the importance of obtaining necessary regulatory approvals, including OCs, before occupying or using a building for commercial purposes. The court’s imposition of a fine and direction to initiate an inquiry highlights the need for businesses and individuals to ensure compliance with regulatory requirements and to take responsibility for their actions.