Punjab Apartment and Property Regulation Act, 1995
Chapter II Chapter II
Chapter II Chapter II
3. General liabilities of promoter.
(1) Notwithstanding anything in any other law for the time being in the force, a promoter, who develops a colony or who constructs or intends to construct a building of 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 of 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 officer not below the rank of Assistant Collector Grade-II 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 building has been obtained; (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 duly certified by an authority not below the rank of Assistant Collector Grade-II; (c) give inspection on seven days' notice or demand,- (i) of the layout of the colony and plan of development works to be executed in a colony as approved by the prescribed authority in the case of a 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 systems, 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 such building regulations, and the area of an apartment shall not exceed such limit as may be fixed by the competent authority; (d) display or keep all the documents, plans and specifications or copies thereof referred to in clauses (a), (b) and (c) of this sub-section 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 demand, if the promoter is himself the builder, the prescribed particulars as respects the designs and the material 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 construction 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: Provided that the Government may by notification direct, - (i) in the case of residential apartments, ten percent of the total apartments be reserved for economically weaker section of society; and (ii) in the case of colony, five percent area of the gross area of the project, be reserved for plots to be allotted to the persons belonging to economically weaker sections of society, in such manner and on terms and conditions, as may be specified. (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; (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 systems, 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 such building regulations, and the area of an apartment shall not exceed such limit as may be fixed by the competent authority; (d) display or keep all the documents, plans and specifications or copies thereof referred to in clauses (a), (b) and (c) of this sub-section 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 demand, if the promoter is himself the builder, the prescribed particulars as respects the designs and the material 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 construction 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: Provided that the Government may by notification direct, - (i) in the case of residential apartments, ten percent of the total apartments be reserved for economically weaker section of society; and (ii) in the case of colony, five percent area of the gross area of the project, be reserved for plots to be allotted to the persons belonging to economically weaker sections of society, in such manner and on terms and conditions, as may be specified. (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 persons 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 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 may be approved by mutual agreement; (m) make a full 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. (2) A promoter who develops a colony or who Constructs or intends to construct such building of 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 officer not below the rank of Tehsildar after he has examined the transactions concerning it in the previous ten years and where the promoter is not the owner of the land on which development is proposed, details of the consent of the owner of the land along with a copy of the collaboration agreement, development agreement, joint development agreement or any other agreement, as the case may be, entered into between the promoter and such owner and copies of title and other documents reflecting the title of such owner on the land proposed to be developed; (b) furnish details of encumbrances on the land on which development of project is proposed, including details of any rights, title interest and name of any party in or over such land or non-encumbrance certificate, through an advocate having experience of atleast ten years from the revenue authority not below the rank of Tehsildar, as the case may be; and (c) submit an affidavit that all statutory requirements have been got completed for submission of revised layout or building plans.
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4. Issuing of advertisement or prospectus
(1) No promoter shall develop any land into a colony or offer plots for sale or transfer or construct apartments or issue any advertisement or prospects for such sale inviting persons to make advances or deposits for booking, unless, - (a) he obtains licence under sub-section (3) of section 5, which is in force and has not been suspended or revoked and its number is mentioned in the advertisement or prospects ; (b) a copy of the advertisement or prospectus is filed in the office of the competent authority before its issue or publication. (2) The advertisement or prospectus issued under sub-section (1) shall disclose the area of the apartments or plots offered for sale, title to the land, extent and situation of land, the price payable and in the case of colonies, also layout of the colony, the plan regarding the development works to be executed in a colony and the number and the validity of the licence issued by the competent authority under sub-section (3) of section 5, and such other matters as may be prescribed. (3) The advertisement or prospectus shall be available for inspection at the office of the promoter and at the site where the building is being constructed or on the land being developed into a colony, alongwith the documents specified in this section and in section 3. (4) When any person makes an advance or deposits on the faith of the advertisement or prospectus, and sustains any loss or damage by reason of any untrue statement included therein, he shall be compensated by,- (a) the promoter, if an individual; (b) every partner of the firm, if the promoter is a firm; (c) every person who is a director at the time of issue of the advertisement or prospectus, if the promoter is a company; Provided, however, that such person shall not be liable if he proves that,- (a) he withdrew his consent to become a director before the issue of the advertisement or prospectus; or (b) the advertisement or prospectus was issued without his knowledge or consent, and on becoming aware of its issue, he forthwith gave reasonable public notice that it was issued without his knowledge or consent; or (c) after the issue of the advertisement or prospectus and before any agreement was entered into with buyers of plots or apartments, he, on becoming aware of any untrue statement therein, withdrew his consent and gave reasonable public notice of the withdrawal and of the reasons therefor. (5) When any advertisement or prospectus includes any untrue statement, every person who authorised its issue, shall be punished with imprisonment for a term which may extend upto three years or with fine which may extend upto five lac rupees, or, with both, unless he proves that the statement was immaterial or that he had reason to believe and did upto the time of issue of the advertisement or prospectus believe that the statement was true. (a) he withdrew his consent to become a director before the issue of the advertisement or prospectus; or (b) the advertisement or prospectus was issued without his knowledge or consent, and on becoming aware of its issue, he forthwith gave reasonable public notice that it was issued without his knowledge or consent; or (c) after the issue of the advertisement or prospectus and before any agreement was entered into with buyers of plots or apartments, he, on becoming aware of any untrue statement therein, withdrew his consent and gave reasonable public notice of the withdrawal and of the reasons therefor. (5) When any advertisement or prospectus includes any untrue statement, every person who authorised its issue, shall be punished with imprisonment for a term which may extend upto three years or with fine which may extend upto five lac rupees, or, with both, unless he proves that the statement was immaterial or that he had reason to believe and did upto the time of issue of the advertisement or prospectus believe that the statement was true. (a) (i) he obtains license under sub-section (3) of section 5; and (ii) he obtains registration under section 3 of the Real Estate (Regulation and Development) Act, 2016 (Central Act No. 16 of 2016), which are in force and have not been suspended or revoked and their numbers are mentioned in the advertisement or prospects; and
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6. Contents of agreement of sale
(1) Notwithstanding anything contained in any other law for the time being in force, a promoter who intends to construct or constructs a building of apartments, all or some of which are to be taken or are taken on ownership basis, or who intends to offer for sale plots in a colony, shall, before he accepts any sum of money as advance payment or deposit, which shall not be more than twenty five per cent of the sale price, enter into a written agreement for sale with each of such persons who are to take or have taken such apartments, or plots, as the case may be, and the agreement shall be in the prescribed form together with prescribed documents and shall be registered under the Registration Act, 1908 (Central Act No. 16 of 1908) : Provided that, if only a refundable application fee is collected from the applicant before draw of lots for allotment, such agreement will be required only after such draw of lots. (2) The promoter shall not cancel unilaterally the agreement of sale entered into under sub-section (1) and if he has sufficient cause to cancel it, he shall give due notice to the other parties to the agreement and tender a refund of the full amount collected together with interest at the rate as may be prescribed. (3) The agreement to be prescribed under sub-section (1) shall contain inter alia the particulars as hereunder specified in clause (a) in respect of apartments and as specified in clause (b) in respect of plots in a colony and to such agreement shall be attached the copies of the documents specified in clause (c),- (a) the particulars in the case of apartment,- (i) if the building is to be constructed, the liability of the promoter to construct the building according to the plans and specifications approved by the authority which is required so to do under any law for the time being in force; (ii) the date by which the possession of the apartment is to be handed over to the allottee; (iii) the area of the apartment including the area of the balconies which should be shown separately; (iv) the price of the apartment including the proportionate price of the common areas and facilities which should be shown separately, to be paid by the allottee of the apartment and the intervals at which the instalments thereof may be paid; (v) the precise nature of the association to be constituted of the persons who have taken or are to take the apartments; (vi) the nature, extent and description of the common areas and facilities and the limited common areas and facilities, if any; (vii) the percentage of undivided interest in the common areas and facilities and in the limited common areas and facilities, if any, appertaining to the apartment agreed to be sold, such percentage shall be the ratio of the built-up area of the apartment to the total built-up area of all the apartments; (viii) the statement of the use for which the apartment is intended and restrictions on its use, if any; (b) particulars in the case of plots in a colony,- (i) the date by which the possession of the plot is to be handed over to allottee; (ii) the area and price of the plot; and (iii) the statement of the use for which the plot is intended and restriction on its use, it any; (c) the copies of documents to be attached with the agreement,- (i) the certificate by officer not below the rank of Assistant Collector Grade-II referred to in clause (a) of sub-section (2) of section 3; (ii) certified copy from any relevant revenue record showing the nature of the title of the promoter to the plot or the land on which the building of apartments is constructed or is to be constructed; (iii) the plans and specifications of the apartment as approved by the authority which is required so to do under any law for the time being in force; and (iv) copy of the approved layout plan of colony.
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7. Registration of agreements of sale
(1) Any agreement of sale entered into under the sub-section (1) of section 6 shall be presented for registration under the Registration Act, 1908, (Central Act No. 16 of 1908), by the promoter or by any other person competent to do so at the proper registration office and execution thereof shall be admitted by the person executing the document or his representative, assignee or agent. (2) Where any agreement of sale is entered into or is purported to be entered into at any time before the commencement of this Act, such document may be presented for registration at the proper registration office and its execution may be admitted by any of the persons concerned within six months of the commencement of this Act, and the registering officer shall accept such document for registration and register it as if it was presented and its execution admitted within time. (3) On presenting a document for registration under sub-section (2), if the person executing such document or his representative, assignee or agent does not appear before the registering officer and admit the execution of the document, the registering officer shall cause a summons to be issued requiring the executant to appear at the registration office either in person or by duly authorised agent on a date fixed in the summons and if the executant fails to appear in compliance with the summons so issued, the execution of the document shall be deemed to be admitted by him and the registering officer may proceed to register the document accordingly and if the executant appears before the registering officer but denies execution of the document, the registering officer shall, after giving him a reasonable opportunity of being heard, if satisfied that the document has been executed by him, proceed to register the document accordingly.
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8. Effect of non-registration of agreement.
Where may agreement for sale entered into under sub-section (1) of section 6, whether entered into before or after the commencement of this Act, remains unregistered for any reason, then notwithstanding anything contained in any law for the time being in force, or in any judgement, decree or order of any court, it may be received as evidence of a contract in a suit for specific performance under Chapter II of the Specific Relief Act, 1963 (Central Act No. 47 of 1963), or as evidence, of part performance of a contract for the purposes of section 53A of the Transfer of Property Act, 1882, (Central Act No. IV of 1882), or as evidence of any collateral transaction not required to be effected by registered instrument. In the principal Act, for sections 12 and 13, the following Sections shall be substituted, namely:- "12. (1) If the promoter,-(a) fails to give possession, in accordance with the terms of his agreement, of a plot or an apartment duly completed by the date specified, or any further date agreed to by the parties; or (b) for reasons beyond his control and of his agents, is unable to give possession of the plot or the apartment by the date specified, or further agreed date, the promoter shall be liable on demand, but without prejudice to any other remedies to which he may be liable, to refund the amounts already received by him in respect of that plot or apartment with interest including compensation at such rate and in such manner as provided under section 18 of the Real Estate (Regulation and Development) Act, 2016 and the rules made thereunder, and the amounts and the interest shall be a charge on the land on which a plot is to be developed, or a building is or was to be constructed and the construction, if any, thereon shall be subject to any prior encumbrances: Provided that where an allottee does not intend to withdraw from the colony, he shall be paid, by the promoter, interest for every month of delay, till the handing over of the possession, at such rate as may be prescribed under the Punjab State Real Estate (Regulation and Development) Rules, 2017 made under the Real Estate (Regulation and Development) Act, 2016. (2) The promoter shall compensate the allottees in case of any loss caused to him due to defective title of the land on which the colony is being developed or has been developed, in the manner as provided under the Real Estate (Regulation and Development) Act, 2016, and the claim for compensation under this sub-section shall not be barred by limitation provided under any law for the time being in force. (3) If the promoter fails to discharge any other obligations imposed on him under this Act and the rules made thereunder or in accordance with the terms and conditions of the agreement for sale, he shall be liable to pay such compensation to the allottees, as provided under the Real Estate (Regulation and Development) Act, 2016. 13. (1) No promoter shall, after he executes an agreement to sell any apartment or plot, mortgage or create a charge on such apartment or the land or the plot, without obtaining the consent of two-third of allottees who take or agree to take such apartment or plot, and without the prior written approval of the competent authority: Provided that if any such mortgage or charge is made or created without such previous consent after the agreement referred to in section 6 is registered, it shall not affect the right and interest of such person. (2) On the transfer or assignment being permitted by the allottees and the competent authority under sub-section (1), the intending promoter shall be required to independently comply with all the pending obligations under the agreement for sale entered into by the erstwhile promoter with the allottees: Provided that any transfer or assignment permitted under provisions of this section shall not result in extension of time to the intending promoter to complete the colony and he shall be required to comply with all the pending obligations of the erstwhile promoter, and in case of default, such intending promoter shall be liable to the consequences of breach or delay, as the case may be. (3) If a promoter has executed an agreement of sale of an apartment or a plot with a person and has not yet received from him all the amounts agreed to be paid, the latter shall not mortgage or create a charge against such apartment or plot without the previous consent of the promoter: Provided that the promoter shall not withhold consent if the mortgage or charge is for the purpose of obtaining finance for the payment of amounts due to the promoter.".
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10. Responsibility for outgoings till transfer.
A promoter shall, while he is in possession, and, where he collects from persons who have taken or are to take apartments or plots, sums for the payment of outgoings, even thereafter, pay all outgoings (including ground rent, municipal or other local taxes, charges for water or electricity, revenue assessment, interest on mortgages or other encumbrances, if any) until he transfers the property to the persons taking over the apartments or plots, where any promoter fails to pay all or any of the outgoings collected by him from the persons who have taken over or are to take over apartments or plots, before transferring the property to the persons taking over the apartments or plots, the promoter shall continue to be liable, even after the transfer of the property, to pay such outgoings and penal charges, if any, to the authority or person to whom they are payable and be responsible for any legal proceedings which may be taken therefor by such authority or person. In the principal Act, in section 15, after sub-section (2), the following sub-section shall be added, namely:- "(3) After obtaining the completion certificate or occupancy certificate, as the case may be, and handing over physical possession to the allottees, it shall be the responsibility of the promoter to handover the necessary documents and plans including common areas, to the local authority or development authority or the association of the allottees, as the case may be.".
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11. No alterations, rectification of defects.
(1) After the plans and specifications of the building as approved by the authority which is required so to do under any law are disclosed or furnished to the person who agrees to take an apartment, the promoter shall; (i) not make any alterations in the structures described therein in respect of such apartment, without the previous consent of that person; or (ii) not make any other alterations in, or additions to the structure of the building or construct any additional structures, without the previous consent of all the persons who have agreed to take apartments in such building. (2) Subject to the provisions of sub-section (1), the building shall be constructed and completed in accordance with the plans and specifications aforesaid; and if any defect in the building or material used, or if any unauthorised change in the construction is brought to the notice of the promoter within a period of two years from the date of handing over possession, it shall wherever possible be rectified by the promoter without further charge to the persons who have agreed to take the apartments, and in other cases such persons shall be entitled to receive reasonable compensation for such defects or change and where there is a dispute as regards any defect in the building or material used or any unauthorised change in the construction, or as to whether it is reasonably possible for the promoter to rectify any such defect or change, or as regards the amount of reasonable compensation payable in respect of any such defect or change which cannot be or is not rectified by the promoter, the matter shall, on payment of such fee as may be prescribed and within a period of three years from the date of handing over possession, be referred for decision to the competent authority and the competent authority shall, after giving an opportunity of being heard to the parties and after making further enquiry, if any, as it may deem fit, record its decision and the decision so recorded shall be final. In the principal Act, in section 16, in sub-section (3), the words and signs "or five thousand rupees, whichever is greater, and further minimum penalty for each plot or apartment of one hundred rupees for each day for which the default continues" shall be omitted.
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12. Refund of amount.
If the promoter,- (a) fails to give possession, in accordance with the terms of his agreement, of a plot or an apartment duly completed by the date specified, or any further date agreed to by the parties; or (b) for reasons beyond his control and of his agents, is unable to give possession of the plot or the apartment by the date specified, or the further agreed date; the promoter shall be liable on demand, but without prejudice to any other remedies to which he may be liable, to refund the amounts already received by him in respect of that plot or apartments with simple interest at the rate as may be determined by the competent authority from the date the promoter received the sums till the date the amounts and interest thereon is refunded, and the amounts and the interest shall be a charge on the land on which a plot it to be developed, or a building is or was to be constructed and the construction, if any, thereon shall be subject to any prior encumbrances. In the principal Act, in section 17, for sub-section (4), the following sub-section shall be substituted, namely:- "4) If the supply or service is not restored before the date specified under sub-section (3), the promoter or the person responsible for the management and maintenance of the building or apartment shall be liable to a penalty for every day during which such default continues, which may cumulatively extend upto five percent of the estimated cost of the colony as determined by the competent authority.".
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13. No mortgage without consent.
(1) No promoter shall, after he executes an agreement to sell any apartment or plot, mortgage or create a charge on such apartment or the land or the plot, without the previous consent of the person who takes or agrees to take such apartment or plot, and if any such mortgage or charge is made or created without such previous consent after the agreement referred to in section 6 is registered, it shall not affect the right and interest of such person. (2) If a promoter has executed an agreement of sale of an apartment or a plot with a person and has not yet received from him all the amounts agreed to be paid, the latter shall not mortgage or create a charge against such apartment or plot without the previous consent of the promoter : Provided that the promoter shall not withhold consent if the mortgage or charge is for the purpose of obtaining finance for the payment of amounts due to the promoter. In the principal Act, for Section 17-A, the following section shall be substituted, namely:- "17-A. (1) After obtaining occupation certificate and within three months of majority of the apartments being allotted, sold, or otherwise transferred, the promoter shall make an application to the competent authority appointed under clause (m) of section 3 of the Punjab Apartment Ownership Act, 1995 (Punjab Act No. 13 of 1995) for the registration of association, with the persons who have taken apartments as members and if the promoter fails to make such application, the allottees shall make such application. (2) If the promoter or the allottees, as the case may be, fail(s) to make application for registration of the association within the period mentioned in sub-section (1), the competent authority shall by an order, direct the promoter or the allottees, as the case may be, to form an association of residents in respect of a project within such period, as may be specified in the order. (3) The owner or allottee or occupier of any apartment shall be a member of the association from the date he takes possession of such apartment. (4) The promoter of the project shall be an associate member of the association in respect of apartment(s) meant for allotment or sale, but not yet allotted or sold. When such apartment(s) is later on allotted, sold or otherwise transferred, the allottee shall become a member of the association and the promoter shall cease to be an associate member of the association in respect of such apartment from the date of possession. (5) The responsibility for administration and management of the apartments and maintenance and upkeep of common areas, infrastructure and common services of the project shall devolve on the association from the date specified by the competent authority in the order passed under sub-section (13) of section 5."
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14. Occupation and completion certificate
(1) It is the responsibility of the promoter, -(i) in the case of apartments, to obtain from the authority required to do so under any law completion and occupation certificates for the building and if a promoter, within a reasonable time, after the construction of the building, does not apply for an occupation certificate from the aforesaid authority, the allottee of an apartment may apply for an occupation certificate from the said authority; and(ii) in the case of a colony, to obtain completion certificate from the competent authority to the effect that the development works have been completed in all respects as per terms and conditions of the licence granted to him under section 5.(2) The authority referred to in sub-section (1) shall, after satisfying itself about the agreement of sale between the promoter and the allottee, and the compliance of the building regulations and all other formalities, issue an occupation certificate: [Provided that the promoter shall transfer free of cost the area under roads, open spaces, parks and sites meant for public utilities to the local authority or development authority, as the case may be, and this transfer would be exempted from stamp duty and any cess applicable.] In the principal Act, for section 19, the following section shall be substituted, namely:- "19. (1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules made thereunder or the agreement for sale signed with the promoter. (2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale. (3) The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas. (4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate, as may be prescribed and compensation in the manner as provided under the Real Estate (Regulation and Development) Act, 2016, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business".
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16. Enforcement of registration of conveyance
(1) If the promoter without sufficient cause fails to execute the conveyance deed of apartment and other relevant documents within three months in terms of the provisions of section 15, the person in possession of the apartment in pursuance of the agreement of sale may make an application, in writing, in the prescribed form to the competent authority for a certificate to be produced before the concerned registering officer for enforcing the registration of the transfer and on receipt of such application and after making such enquiry as may be necessary and satisfying itself that occupation certificate has been obtained from the authority required to do so under any law and the person in possession has done what he was required to do under the agreement of sale, the competent authority shall issue a certificate to the registering officer that it is a fit case for enforcing registration of the conveyance deed and direct the person who has taken the apartment to present the conveyance deed of apartment though not executed by the promoter for unilateral execution of registration.(2) After the conveyance deed of apartment alongwith the certificate issued by the competent authority under sub-section (1) is presented for registration, the registering officer shall cause a summons to be issued to the promoter and if the promoter fails to appear in compliance with the summons so issued, the execution of the instrument shall be deemed to be admitted by him and the registering officer shall proceed to register the instrument and if the promoter appears but denies execution of the conveyance deed, the registering officer, after giving him a reasonable opportunity of being heard, if satisfied that the promoter has failed to execute the conveyance deed without sufficient cause, shall proceed to register the same.(3) If the promoter fails to execute a written agreement of sale as required by section 6, or fails to execute the conveyance deed of apartment and other relevant documents as specified in sub-section (1), within three months, the competent authority may, either on a complaint or suo-moto, impose for each plot or apartment for which there is a default, a penalty up to a maximum of five per cent of the price of the plot or the apartment or Rs. 5,000, whichever is greater, and further minimum penalty for each plot or apartment of Rs. 100 for each day for which the default continues, and the penalty may be recovered as an arrear of land revenue.(4) The penalty imposed in sub-section (3) shall be in addition to any action taken under the Indian Stamp Act, 1899 (Central Act No. 2 of 1899) or the Registration Act, 1908 (Central Act No. 16 of 1908), and if a penalty is imposed under the provisions of any or these Acts, the promoter shall not be liable to penalty for the same offence under this Act or under any other law governing the apartment ownership. (1) taken the apartment to present the conveyance deed of apartment though not executed by the promoter for unilateral execution of registration. (2) After the conveyance deed of apartment alongwith the certificate issued by the competent authority under sub-section (1) is presented for registration, the registering officer shall cause a summons to be issued to the promoter and if the promoter fails to appear in compliance with the summons so issued, the execution of the instrument shall be deemed to be admitted by him and the registering officer shall proceed to register the instrument and if the promoter appears but denies execution of the conveyance deed, the registering officer, after giving him a reasonable opportunity of being heard, if satisfied that the promoter has failed to execute the conveyance deed without sufficient cause, shall proceed to register the same. (3) If the promoter fails to execute a written agreement of sale as required by section 6, or fails to execute the conveyance deed of apartment and other relevant documents as specified in sub-section (1), within three months, the competent authority may, either on a complaint or suo-moto, impose for each plot or apartment for which there is a default, a penalty up to a maximum of five per cent of the price of the plot or the apartment or five thousand rupees, whichever is greater, and further minimum penalty for each plot or apartment of one hundred rupees for each day for which the default continues, and the penalty may be recovered as an arrear of land revenue. (4) The penalty imposed in sub-section (3) shall be in addition to any action taken under the Indian Stamp Act, 1899 (Central Act No. 2 of 1899) or the Registration Act, 1908 (Central Act No. 16 of 1908), and if a penalty is imposed under the provisions of any or these Acts, the promoter shall not be liable to penalty for the same offence under this Act or under any other law governing the apartment ownership.
Chapter II Chapter II
17. Promoter's responsibility for essential services
(1) No promoter and no person who is responsible for the management and maintenance of a building of apartments, shall without just and sufficient cause, either by himself or through any person, cut off, withhold, curtail or reduce, any essential supply or service enjoyed in respect of such apartment by the person who has taken or agreed to take an apartment or by any person in occupation thereof through or under him. (2) It there is a contravention of the provisions of sub-section (1), the person who has taken or agreed to take the apartment or the occupier thereof may make an application to the competent authority for a direction to restore such supply or service. (3) If the competent authority on enquiry finds that the person referred to in sub-section (2) has been in enjoyment of the essential supply or service and that it was cut off or withheld or curtailed or reduced without just and sufficient cause, the competent authority shall make an order directing the restoration of such supply or service before a date to be specified in the order. (4) If the supply or service is not restored before the date specified under sub-section (3), the promoter or the person responsible for the management and maintenance of the building or apartment shall be liable, upon a further direction by the competent authority to that effect, to a penalty which may extend to one hundred rupees for each day during which the default continues thereafter. (5) Notwithstanding anything contained in any law for the time being in force, the competent authority shall have jurisdiction to decide any application made under sub-section (2), and no other court shall have jurisdiction to entertain such application and no appeal shall lie from any order made on such application: Provided that the State Government may for the purpose of satisfying itself that the order made was according to law, call for the case in which such an order was made and may pass such order with respect thereto as it thinks fit. (6) Any promoter or person responsible for the management and maintenance of building or apartment, who contravenes the provisions of sub-section (1), shall on conviction, be punished with imprisonment for a term which may extend to three months, or, with fine, which may extend to five thousand rupees, or, with both. (7) The offence under sub-section (6) shall be cognizable, and shall not be triable by any court inferior to that of Judicial Magistrate of the First Class. Explanation. - (1) In this section, "essential supply or service" includes the supply of water, electricity, lights in passages and on staircase, and lifts and conservancy or sanitary service. Explanation. - (2) For the purposes of this section withholding any essential supply or service shall include acts or omissions attributable to the promoter or the person responsible for the management and maintenance of the building or apartment, on account of which the essential supply or service is cut off by the local authority or any other authority.
Chapter II Chapter II
18. Regulation of property transactions
(1) A promoter who enters into a transaction for the transfer relating to a property shall,- (a) make full and true disclosure of the nature of his title to the property indicating clearly that his title to property has been duly certified by [by the officer not below the rank of Assistant Collector Grade-II and make full and true disclosure of the license obtained from the competent authority under section 5]; (b) make full and true disclosure of all encumbrances on such property, including any right, title, interest or claim of any party in or over such property; (c) in case the property is land held on lease, produce consent from the lessor for the transaction; (d) [Omitted] (e) make full and true disclosure of any reservations, in the development plan framed under any law for the time being in force or restrictions on the use to which the property may be put and any liability to carry out any development works; (f) specify in writing the date by which possession of the property is to be handed over; (g) make full and true disclosure of all outgoings, including ground rent, it any, municipal or other local taxes, revenue assessment, interest on any mortgage or other encumbrance, development charges or charges for maintenance and upkeep of roads, drainage, sewerage, water supply, electricity, laid out and constructed by the Government or any local authority. (2) No person shall issue a prospectus or advertisement offering for sale any property, unless the prospectus or advertisement indicates the place and time the documents and certificates relating to the matters specified in sub- section (1) are available for inspection. (3) The provisions of sub-sections (4) and (5) of section 4 shall apply mutatis mutandis for mis-statements in the prospectus or advertisement issued under sub-section (2) of this section. (4) The provisions of sections 13, 15 and 16 shall apply mutatis mutandis to a transaction of property made under this section.
Chapter II Chapter II
19. General liabilities of allottee
(1) Every allottee who has executed an agreement of sale to take an apartment or a plot under section 6 or any property under section 18 shall pay at the proper time and place, the price, the proportionate share of the municipal taxes, water and electricity charges, ground rent, if any, and other charges in accordance with the agreement of sale. (2) Any person who has executed an agreement of sale of an apartment or plot or other property and who, without reasonable excuse, fails to comply with or contravenes the provisions of sub-section (1) shall, on conviction, be punished with fine which may extend to one per cent of the price of the apartment or plot or property, as the case may be, or one thousand rupees, whichever is greater. (1) The allottee shall be entitled to obtain the information relating to sanctioned plans, layout plans along with the specifications, approved by the competent authority and such other information as provided in this Act or the rules made thereunder or the agreement for sale signed with the promoter. (2) The allottee shall be entitled to know stage-wise time schedule of completion of the project, including the provisions for water, sanitation, electricity and other amenities and services as agreed to between the promoter and the allottee in accordance with the terms and conditions of the agreement for sale. (3) The allottee shall be entitled to claim the possession of apartment, plot or building, as the case may be, and the association of allottees shall be entitled to claim the possession of the common areas. (4) The allottee shall be entitled to claim the refund of amount paid along with interest at such rate, as may be prescribed and compensation in the manner as provided under the Real Estate (Regulation and Development) Act, 2016, from the promoter, if the promoter fails to comply or is unable to give possession of the apartment, plot or building, as the case may be, in accordance with the terms of agreement for sale or due to discontinuance of his business as a developer on account of suspension or cancellation of his license under the provisions of this Act or the rules made thereunder or suspension or revocation of his registration under the provisions of the Real Estate (Regulation and Development) Act, 2016. (5) The allottee shall be entitled to have the necessary documents and plans, including that of common areas, after handing over the physical possession of the apartment or plot or building, as the case may be, by the promoter. (6) Every allottee, who has entered into an agreement for sale to take an apartment, plot or building, as the case may be, under sections 6 or 18, shall be responsible to make necessary payments in such manner and within such time as specified in the said agreement for sale and shall pay at the proper time and place, the share of the registration charges, municipal taxes, water and electricity charges, maintenance charges, ground rent, and other charges, if any. (7) The allottee shall be liable to pay interest at such rate, as may be prescribed, for any delay in payment towards any amount or charges to be paid under sub-section (6). (8) The obligations of the allottee under sub-section (6) and the liability towards interest under sub-section (7) may be reduced when mutually agreed to between the promoter and such allottee. (9) Every allottee of the apartment, plot or building, as the case may be, shall participate towards the formation of an association or society or cooperative society of the allottees, or a federation of the same. (10) Every allottee shall take physical possession of the apartment, plot or building, as the case may be, within a period of two months of the occupancy certificate issued for the said apartment, plot or building, as the case may be. (11) Every allottee shall participate towards registration of the conveyance deed of the apartment, plot or building, as the case may be, as provided under sub-section (1) of section 15.
Chapter II Chapter II
20. Restriction on development and structures in a colony
(1) No person shall raise construction of any building, lay roads or water supply lines or sewerage lines or erect electricity poles in a colony, in respect of which licence has not been obtained from the competent authority. (2) No department of the Central Government or the State Government or Authority or Municipality or Board, shall sanction any building plan, give water connection, sewerage connection, telephone connection or electricity connection to any building or land situated in a colony or building, in respect of which license has not been obtained from the competent authority. (3) No Registrar or Sub-Registrar appointed under the provisions of the Registration Act, 1908, shall register sale deed or any other document regarding sale of land or plot or building situated in a colony, in respect of which license has not been obtained from the competent authority. (4) Every owner or occupier of a property in a colony in respect of which licence has been obtained under this Act, shall comply, while erecting, re-erecting or using the said property, with the conditions regarding use of land, layout plan, zoning, site coverage, height of building, setback lines, structural and sanitary requirements, architectural control, design of buildings and material to be used in construction, as may be prescribed.
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