Chapter III FUNCTIONS AND DUTIES OF PROMOTER

Obligations of promoter.-(1) The promoter shall, upon receiving his Login ID and password under clause (a) of sub-section (1) of section 4 or under sub-section (2) of section 4, as the case may be, create his web page on the website of the Authority and enter all details of the proposed project as provided under sub-section (2) of section 4, in all fields as provided, including,-

1. (a) details of the registration granted by the Authority;
2. (b) quarterly up-to-date list of number and types of buildings or plots, as the case may be, booked;
3. (c) quarterly up-to-date status of the project; and
4. (d) such other information and documents, as may be specified, by the regulations made by the Authority.
5. (e) if any agent is engaged by the promoter the details including the registration of the said agent.

1. (2) The advertisement or prospectus issued or published by the promoter shall mention prominently the website address of the Authority, wherein all details of the registered project have been entered and include the registration number obtained from the Authority and such other matters incidental thereto.
2. (3) The promoter upon entering into an agreement of sale with the allottee, shall be responsible to make available to the allottee, the following information, namely:-
   • (a) site and layout plans along with specifications, approved by the competent authority, by display at the site or such other place, as may be specified, by the regulations made by the Authority;
   • (b) the stage-wise time schedule of the project, including making available provisions for water, sanitation and electricity.
3. (4) The promoter shall,-
   • (a) be responsible to obtain occupancy certificate from the relevant competent authority as per the laws for the time being in force and to make it available to the allottees individually or to the association;
   • (b) be responsible for providing and maintaining the essential services, as may be specified in the agreements, on reasonable charges, till the taking over of the maintenance of the project by the association;
   • (c) take steps for the formation of an association of the allottees and to register it within such time as may be prescribed.
4. (5) The promoter may cancel the allotment only in terms of the agreement of sale: Provided that the allottee may approach the Authority for relief, if he is aggrieved by such cancellation and such cancellation is not in accordance with the terms of the agreement of sale, unilaterally and without any sufficient cause.
5. (6) The promoter shall prepare and maintain all such other details, as may be specified, from time to time, by regulations made by the Authority and shall be subjected to inspection.

Compensation for loss.-Where any person makes an advance or a deposit on the basis of the information contained in the advertisement being given by the promoter or prospectus or on the basis of any other written information and sustains any loss or damage by reason of any incorrect, false statement included herein, he shall be compensated by the promoter, in the manner, as provided under this Act: Provided that if the person affected by such incorrect, false statement contained in the advertisement, prospectus or any other records intends to withdraw from the proposed project, he shall be returned his entire investment along with interest at such rate, as may be prescribed.

Agreement for sale.-(1) A promoter shall not accept a sum more than ten per cent of the cost of the plot or building, as the case may be, as an advance payment, deposit or an application fee, from a person without first entering into a written agreement for sale with such person.

1. (2) The agreement referred to in sub-section (1) shall be in such form, as may be prescribed, and shall specify the particulars of development of the project including the construction of building along with specifications and external development works, the dates and the manner by which payments towards the cost of the plot or building as the case may be, are to be made by the allottees and the likely date on which the possession of the plot or building is to be handed over and such other particulars, as may be prescribed.

Adherence to approved plan and project specifications by promoter.—

1. (1) The proposed project shall be developed and completed by the promoter in accordance with the plans and structural designs and specifications as approved by the competent authorities.
2. (2) The promoter shall not alter in any manner the compulsory open spaces of the building or shall not alter the aggregate area of the park, recreational ground, play ground, garden etc., in the approved colony, in which allottees agreed to take one or more building units, without the consent of all such allottees except when such alteration is required by the competent authority due to change in law.
3. (3) In case any defect in such building or materials used, occurred not due to the fault of the allottee, is brought to the notice of the promoter within a period of two years of handing over possession of a building unit, by the allottee or the association from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without collecting additional charge, within reasonable time, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees or association shall be entitled to receive appropriate compensation in the manner as provided under this Act.

Transfer of title.—

1. (1) The promoter shall take all necessary steps to execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas including the handing over of the possession of the plot or building, as the case may be, in a real estate project, and the other title documents pertaining thereto.
2. (2) After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to hand over the necessary documents and plans, including that of common areas, to the association or the competent authority, as the case may be, as per the law for the time being in force.

Creation of Mortgage or Charge.—

1. (1) No promoter shall after he executes an agreement for sale of any plot or building, mortgage or create a charge on such plot or building without the written previous consent of the person who has entered into such an agreement with him.
2. (2) Notwithstanding anything contained in sub-section (1) a mortgage or charge can be made or created by an allottee for the purpose of obtaining finance for the payment of the amount due to the promoter.

Return of amount and Compensation.—If the promoter fails to complete or is unable to give possession of a plot or building,—

1. (a) in accordance with the terms of the agreement or, as the case may be, duly completed by the date specified therein or any further date agreed to by the parties; or
2. (b) due to discontinuance of his business as a developer on account of suspension or revocation of his registration under this Act or for any other reason, he shall be liable on demand, without prejudice to any other remedy available, to return to the allottees, the amount received by him in respect of that plot or building, as the case may be, with interest at such rate, as may be prescribed, in this behalf including compensation to the allottees, in the manner provided under this Act.

Rights of Promoter and associations consequent to change in law or policy of Government or Local Self Government Institution.—Notwithstanding anything contained in this Act, the promoter shall be entitled to develop and continue to develop the land belonging to the Promoter in the colony remaining after the execution of one or more phases of the real estate project with the right to use the internal access roads and all the facilities, amenities and services in the colony and to construct additional structures thereon by using the balance floor area ratio and balance transfer of development right and balance additional floor area ratio relating to the said colony consequent to any future increase in floor area ratio occurred due to change in the law or the policies of the Government or the Local Self Government Institutions: Provided that if the floor area ratio of the plot in a colony is increased as stated above, subsequent to conveyance of any one or more structures to allottees, then increase in floor area ratio which is proportionate to the floor area ratio utilised by the conveyed structure or structures to total floor area ratio of the colony, shall belong to the association of allottees and it shall not be necessary for the promoter to obtain any consent or permission from the association for the purpose of utilising the balance floor area ratio.