Query on MCD Sanction Plan/NOC for 20-Year-Old Builder Floor

739 votes

Proceed with caution. Insist on obtaining a certified copy of the sanctioned building plan from MCD before finalising the purchase. An MCD NOC alone is not equivalent to a sanctioned plan and may not provide adequate protection against future demolition or sealing proceedings. In the absence of a sanctioned plan, conduct enhanced due diligence, including obtaining a municipal status report and confirming the lending bank's willingness to finance the property.

Advocate Kawaljit Singh Bhatia LawRato

628 votes

For a 20-year-old builder floor in South Delhi, it would be advisable to insist on obtaining the sanctioned building plan or a certified copy thereof rather than relying solely on an MCD NOC. A sanctioned plan and an MCD NOC serve different purposes. The sanctioned plan establishes that the building was originally approved by the municipal authority and enables verification of whether the existing construction conforms to the approved layout. An NOC generally certifies a limited aspect and does not necessarily confirm that the structure is free from unauthorized construction, deviation, demolition risk, or sealing proceedings. In many cases, MCD records of older properties are still available, and certified copies of sanctioned plans can often be obtained from the concerned municipal records. Therefore, the seller's statement that the original sanctioned plan is unavailable does not automatically mean that a certified copy cannot be procured. If the seller is only able to provide an MCD NOC, you should carefully examine its contents and verify whether there are any pending demolition, sealing, booking, or unauthorized construction proceedings against the property. You should also ascertain whether there are any deviations from the originally sanctioned structure, particularly with respect to additional floors, terrace rights, setbacks, or covered areas. From a banking perspective, many banks and housing finance institutions examine municipal approvals and building records before sanctioning a home loan. The absence of sanctioned building records may lead to additional scrutiny and, depending upon the lender's internal policies, may affect loan processing. Before proceeding with the purchase, it would be prudent to verify the complete chain of title documents, municipal records, property tax records, and the current status of the construction from the concerned authority. An MCD NOC by itself is generally not a substitute for a sanctioned plan and may not provide complete protection against future municipal action if unauthorized construction is subsequently discovered. Therefore, if possible, insist upon obtaining the sanctioned plan or a certified copy thereof and ensure that proper due diligence of the property is undertaken before finalizing the transaction.

Advocate Yuganshu Sharma LawRato