General liabilities of promoter

(1) Notwithstanding anything contained in any other law for the time being in force, a promoter, who develops a colony or who constructs or intends to construct a building or apartments, shall, in all transactions with persons taking or intending to take a plot or an apartment on ownership basis, be liable to give or produce, or cause to be given or produced, the information and the documents mentioned hereinafter in this section. (2) A promoter who develops a colony or who constructs or intends to construct such building or apartments shall,- (a) make full and true disclosure of the nature of his title to the land on which such colony is developed or such building is constructed or is to be constructed, such title to the land having been duly certified by an Assistant Collector First Grade or Second Grade, as the case may be, after he has examined the transactions concerning it in the previous ten years; and if the land is owned by another person, the consent of the owner of such land to the development of the colony or construction of the buildings has been obtained: Provided that the promoter may be issued letter of intent on the basis of the consent of the landowner(s) but the licence shall only be granted when the promoter acquires the absolute and clear title of the land in his own name; (b) make full and true disclosure of all encumbrances on such land, including any right, title, interest or claim of any party in or over such land; (c) make available for inspection on seven days notice or on demand,- (i) of the layout of the colony and plan of development works to be executed in a colony as approved by the Director in the case of colony; and (ii) of the plan and specifications of the building built or to be built on the land as well as of the common areas and facilities and common services provided (including supply of electricity and water, sewerage and drainage system, lifts, fire-fighting equipment), such plans and specifications being in accordance with the provisions of the building regulations, and approved by the authority which is required so to do under any law for the time being in force, indicating thereon what parts of the building and the appurtenant areas are intended to be kept as common areas and facilities in the case of apartments: Provided that the number and sizes of the apartments shall conform to the building regulations, and the area of an apartment shall not exceed such limit as may be fixed by the Director; (d) display or keep all the documents, plans and specifications or copies thereof referred to in clauses (a), (b) and (c) at the site and in his office and make them available for inspection to persons taking or intending to take a plot or an apartment and after the association is formed, he shall furnish the association a copy of these documents and of the sanctioned plan of the building; (e) disclose the nature of fixtures, fittings and amenities, including the provision for one or more lifts, provided or to be provided; (f) disclose on reasonable notice or on demand, if the promoter is himself the builder the prescribed particulars in respects of the design and the materials to be used in construction and, if the promoter is not himself the builder, disclose all agreements entered into by him with the architects and contractors regarding the design, materials and constructions of the building; (g) specify, in writing, the date by which possession of the plot or apartment is to be handed over and he shall hand over such possession accordingly; (h) except where there are no agreements about specific plots or apartments and allotment is made by draw of lots, prepare and maintain a list of plots or apartments with their numbers, the names and addresses of the parties who have taken or agreed to take plots or apartments, the price charged or agreed to be charged therefor, and the terms and conditions, if any, on which the plots or apartments are taken or agreed to be taken; (i) state in writing, the precise nature of and the terms and conditions governing the association to be constituted of persons who have taken or are to take the apartments; (j) not allow person to enter into possession until an occupation certificate required under any law is duly given by the appropriate authority under that law and no person shall take possession of an apartment until such occupation certificate is obtained; (k) make a full and true disclosure of all outgoings, including ground rent, if any, municipal or other local taxes, charges for water and electricity, revenue assessment, interest on mortgages or other encumbrances, if any; (l) give the estimated cost of the building and the apartments proposed to be constructed, or colony to be developed; and the manner in which escalation in such cost for valid reasons as may be approved by mutual agreement; (m) make a full and true disclosure of such other information and documents in such manner as may be prescribed; and (n) give on demand and on payment of reasonable charges true copies of such of the documents referred to in any of the clauses of this sub-section as may be prescribed. (3) Any promoter who has been granted licence under this Act, without reasonable cause, fails to comply with or contravenes the provisions of this section, sections 78p or 78q and rules or regulations made thereunder, shall, on conviction, be punished with imprisonment for a term which may extend to three years or with fine which may extend to Rs. 5,00,000 or with both.