Karnataka Faces New Home Construction Crisis After Supreme Court Ruling on Utility Connections

A recent Supreme Court ruling has sparked a full-blown construction crisis across Karnataka, especially in urban hubs like Bengaluru. The directive prohibits the provision of electricity, water, and sewerage connections to any building that lacks a Completion Certificate (CC) and Occupancy Certificate (OC). The result: more than 3 lakh homebuilders and property owners now face severe delays, with many projects stalled mid-way.

⚖️ The Supreme Court Directive: What's at Stake

The apex court’s order, issued on December 12, 2024, mandates that no utility services can be provided to any newly constructed property without both CC and OC. While this aligns with municipal regulations, it directly contradicts provisions of the Electricity Act, 2003, which does not require these certificates for power connections.

This legal discrepancy has thrown housing projects — from small village homes to urban residential complexes — into uncertainty.

🏗️ Impact on Builders and Homeowners

The biggest fallout is being felt in Bengaluru, where thousands of properties are in advanced stages of construction. Without access to basic utilities, residents cannot obtain livability approvals, further delaying handovers and occupancy.

“How can a structure be certified as livable without electricity, water, or sanitation?” asked High Court Advocate Sridhar Prabhu, who has been advocating for a policy revision.

📬 Legal Expert Calls for Government Action

Sridhar Prabhu has written to Karnataka Chief Minister Siddaramaiah, Deputy CM D.K. Shivakumar, and Law Minister H.K. Patil, urging immediate action. He recommends that the government issue a clarificatory order allowing temporary utility connections before CC and OC are issued — with provisions to take corrective action if the certifications are not secured within a stipulated time.

“Genuine homeowners who have invested legally should not be punished due to procedural gridlocks,” he added.

🧱 Contradiction Between Laws

Local laws (BBMP, KMC, etc.) require CC and OC before final approval.

Electricity Act, 2003 does not mandate CC/OC for power supply.

Due to the Supreme Court ruling, utility agencies like BESCOM are now refusing connections — even for legally constructed properties.

This contradiction has placed the onus on the Karnataka State Government to resolve the deadlock through policy reform or legal amendments.

⚠️ Potential Statewide Fallout

If the issue remains unresolved, real estate development across Karnataka could grind to a halt. Property owners and developers are already reporting mounting financial losses due to project delays and inability to offer possession to homebuyers.

🏛️ What Needs to Be Done

Advocate Prabhu and other legal experts recommend:

A government-issued clarification allowing interim utility connections

Amendments to municipal laws to align with Supreme Court intent while preserving builder/homeowner rights

Establishing a compliance window for obtaining CC/OC post-connection

📌 Conclusion

With over 3 lakh construction projects at risk, Karnataka’s housing sector faces a legal roadblock that could stall growth, investment, and public trust. All eyes are now on the state government for a swift, pragmatic resolution that balances regulatory compliance with the rights of genuine homeowners.