Final Real Estate Bill - Clean

Draft Model Bill for Real Estate Management - (NAREDCO)
REAL ESTATE MANAGEMENT (REGULATION, CONTROL AND PLANNED DEVELOPMENT) BILL, 2009 CONTENTS Introduction Sections CHAPTER I PRELIMINARY 1. 2. Short title, extent and commencement Interpretations CHAPTER II REAL ESTATE MANAGEMENT & REGULATORY AUTHORITY 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. Constitution of Real Estate Management & Regulatory Authority Term of office of Chairperson and other Members Powers of the Chairperson Removal of Chairperson and Members from office in certain circumstances Officers of the Regulatory Authority Powers and functions of Regulatory Authority Powers of Regulatory Authority to call for information, conduct investigations etc. Powers of Regulatory Authority to Issue Directions Powers of the Regulatory Authority consequent upon cancellation of the License of the Developer Functions of the Regulatory Authority for planned Land development and promotion of the real estate sector CHAPTER III LICENSE TO THE DEVELOPER 13. 14. 15. 16. No development of Land into Colony or construction of Apartment for Marketing without a License Conditions for grant of License by Regulatory Authority Cancellation of License Appeal against the order of the Regulatory Authority CHAPTER IV REGISTRATION OF REAL ESTATE AGENT AND CONTRACTOR 17. 18. 19. Registration Compulsory Conditions for registration Terms and renewal of registration
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20. 21. 22.
Refusal to grant or renew registration Cancellation of certificate of registration Notice before cancellation of registration CHAPTER V ROLE AND RESPONSIBILITIES OF STAKE HOLDERS
23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40.
Role of Developer Issuing of advertisement or prospectus Responsibility of Stake Holder regarding veracity of the advertisement or prospectus No deposit or advance to be taken by Developer without first entering into an Agreement for Allotment. Responsibility of the Developer regarding the account of sums taken from any source Responsibility of Developer for outgoings till transfer Refund of amount / Payment of Interest Responsibility of the Developer to the Allottee during project period Handing over of Apartment, common areas and documents to the Association Association of the Allottee Adherence to approved plans and project specification by the Developer Supply of essential services Responsibilities of Allottee General liabilities of Allottee Responsibilities of a Contractor Responsibilities of Development Authority Responsibilities of Financial Institutions Responsibilities of Real Estate Agent and Contractor CHAPTER VI INFRASTRUCTURE DEVELOPMENT CHARGES
41.
Infrastructure Development Charges collected from Developer
CHAPTER VII MAINTENANCE OF ACCOUNTS, REGISTERS AND RECORDS AND AUDIT 42. 43. 44. Maintenance of Accounts and Records Audit Inspection of Accounts or Records of Business CHAPTER VIII APPELLATE TRIBUNAL 45. 46. 47. 48. Establishment of Appellate Tribunal Term of office of Chairperson and other Members Removal of Chairperson and Members from office in certain circumstances Officers of the Appellate Tribunal
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49. 50. 51. 52. 53.
Appeals to the Appellate Tribunal Powers and Functions of Appellate Tribunal Order passed by the Appellate Tribunal to be executable as a Decree Penalty for willful failure to comply with orders of Appellate Tribunal Appeals to the High Court CHAPTER IX OFFENCES & PROSECUTION
54. 55. 56. 57. 58. 59. 60. 61. 62. 63. 64.
Contravention of Section 23, Section 24, Section 26, Section 27 Section 28, Section 29, Section 3, Section 32 Contravention of Section 27 (2) Contravention of Section 30 Contravention of Section 35 and 36 Contravention of Section 38, 39 and 40 Contravention of other provisions of this Act or Rules made there under Offences by companies Other Offence Jurisdiction of Courts Prosecution of Companies Compounding of offences CHAPTER X MISCELLANEOUS
65. 66. 67. 68. 69.
Civil Court not to have jurisdiction Power to make Rules Delegation of Powers Protection of acts done in good faith Act to have overriding effect
FIRST SCHEDULE Form of the Agreement & accompanying documents SECOND SCHEDULE Measures for protection and safety of Property to be taken by the Developer THIRD SCHEDULE Developer's responsibility to form Association
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REAL ESTATE MANAGEMENT (REGULATION, CONTROL AND PLANNED DEVELOPMENT) ACT, 2009 INTRODUCTION Before the Real Estate Management (Regulation, Control and Planned Development) Act came into existence in ______, there was no specific statutory provision of law to govern the management and control of real estate sector in India, specially conduct of developers, contractors, real estate agents, consumers and other persons engaged in allied services, regarding development of real estate sector in India. In the absence of any specific statutory provisions the responsibilities and liabilities of developers, contractors, real estate agents, consumers and other persons engaged in allied service could not be properly fixed and governed by the authorities. To remedy these confusions and regulate, control and promote planned and healthy development and management of real estate sector, including promotion of construction, sale, transfer and management of Building, Apartment and other similar properties with a view to protecting, on the one hand the public interest in relation to the conduct of developers, consumers and other persons engaged in the development of real estate sector and on the other facilitating smooth and speedy construction of such Building, Apartment and properties and ensuring that their construction and maintenance is in accordance with the prescribed structural safety norms and for matters connected therewith or incidental thereto, a draft Bill was prepared by ________ in the year 2001 and was introduced in the Parliament in the year 2001. The Bill was redrafted by ___________ in the year 2009. Act __ of _____ The Bill pertaining to Real Estate Management (Regulation, Control and Planned Development) Act was prepared not less than ______ times before the final Bill was passed and it came into force with effect from ____ day of ________, _____ as the Real Estate Management (Regulation, Control and Planned Development) Act, _____.
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REAL ESTATE MANAGEMENT (REGULATION, CONTROL AND PLANNED DEVELOPMENT) BILL, 2009 A BILL An Act to promote growth of real estate industry in the country in order to boost the economy, improve quality of life and attract investment by enhancing business opportunities, increasing transparency and insuring safety while protecting interest of all Stake Holders including those of Allottees. This Act will strive to facilitate and smoothen the process of adoption of best practices in order to evolve a credible and reliable system. The Act will create a level playing field between public, private and other such persons involved in real estate development. Be it enacted by the State Assembly in the Sixtieth Year of the Republic of India as follows: CHAPTER I PRELIMINARY 1. Short title, extent and commencement (1) This Act shall be called the Real Estate Management (Regulation, Control and Planned Development) Act, 200-. (2) It extends to the State of -------. (3) It shall come into force on such date as the Government may, by notification in the Official Gazette, appoint. Interpretations - In this Act, unless the context otherwise requires: (1) "Advertisement" means visible representation made to the general public either through announcement or display or in any other manner whatsoever (a) offering for sale, lease or license a Building or Apartment or inviting persons who intend to take such Building or Apartment to make advances or deposits for such purpose; and (b) for any other matter incidental to the aforesaid purposes; "Allottee(s)" means the person(s) to whom any Building(s) or Apartment(s) has been allotted, sold or given on lease or license or otherwise transferred by the Developer and includes (a) its legal representatives, (b) successors in title or permitted assignees. "Apartment(s)" means a block, chamber, dwelling unit, flat, premises, suite, plot, tenement, unit or known by any other name, and includes a separate and selfcontained part of any Property located in a basement or cellar or on one or more floors or any part thereof, in a Building or on a plot of Land or a Colony, used or intended to be used as a residence and in case of an Integrated Township an office, shop, showroom, or go-down or for carrying on any business, industry, occupation, profession or trade or for any other type of independent use ancillary to the purpose specified above and includes any garage or room, whether or not adjacent to the Building in which such Apartment is located provided by the Developer for the use of the Allottee for parking any vehicle, or as the case may be, for the residence of any domestic servant employed in such Apartment; Agreement means a concurrence in an engagement that something shall be done
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2.
(2)
(3)
(4)
(5) (6) (7)
(8)
(9)
(10)
(11)
(12)
(13) (14)
(15)
or omitted; an exchange of promises; mutual understanding, arrangement, or stipulation of a contract; "Appellate Tribunal" means the Real Estate Appellate Tribunal established by the Government under Section 45; "Architect means a person registered as an Architect under the provisions of the Architects Act, 1972; "Association" means an Association consisting of majority of the Allottee of the Apartment, occupants in a Building or Colony acting as a group in accordance with the provisions of this Act or any other Act in force; "Building(s)" means Building constructed on any Land from any construction material for residential use and in case of an Integrated Township an office, shop, showroom or godown etc. and includes an Apartment or any other structure; "Building Regulations" means the Rules or Regulations or bye laws made under any law for the time being in force for the erection or re-erection of Building or parts thereof and for the purpose of this Act includes zoning or development control regulations framed under such law; Carpet Area means the sum of the floor areas measured at floor level from the general inside face of walls of all interior spaces related to the primary function of the Building; "Chairperson" means the Chairperson of the Regulatory Authority appointed by the Government. under Section 3; and in relation to Real Estate Appellate Tribunal means the Chairperson of the Appellate Tribunal appointed by the Government under Section 45; "Colony" means an area of Land divided or proposed to be divided into plots or flats for residential use and in case of an Integrated Township an office, shop, showroom or godown etc. but shall not include an area of Land divided or proposed to be divided: (a) for the purpose of agriculture; or (b) as a result of family partition, inheritance, succession or partition of joint holding not with the motive of earning profit; or (c) in furtherance of any scheme sanctioned under any other law; or (d) by the owner of a factory for setting up a housing Colony for the labourers or the employees working in the factory, provided there is no profit motive; or (e) which does not exceed one thousand square meters; Commitment means an Agreement to perform a particular activity at a certain time in the future under certain circumstances; "Common Areas and Facilities' means all parts of the an Apartment or a Building or the Land on which it is located and all easements, rights and appurtenances belonging to such Apartment, Building or Land, which are neither in the exclusive possession or enjoyment of the Allottee of an Apartment in terms of its conveyance deed of Apartment, nor are handed over or intended to be handed over to the Development Authority or other public service agency; "Common Expenses" means (a) all sums lawfully assessed against the Allottee by the Association / Developer, as the case may be, for meeting the expenses of administration, maintenance, repair or replacement of the Common Areas and Facilities; (b) expenses declared by the provisions of this Act or under the provisions of
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(16)
(17)
(18)
(19)
(20)
any other Act for the time being in force or agreed upon by the Association / Developer, as Common Expenses; (c) the Government and municipal taxes including ground rent and property tax, which is not assessed separately for each Apartment; "Company" means a Company formed and registered under the Companies Act, 1956 and includes (a) a corporation established by or under a Central, State or Provincial Act; (b) a Development Authority or public authority established by the Government in that behalf under any law for the time being in force; Development Authority means the local authorities or any other authority notified by the Government for granting Permissions and Approvals under this Act and any other Act as may be applicable for time to time and the Rules made there under; Completion Certificate means the Completion Certificate / Occupancy Certificate to be issued by the Development Authority certifying completion or the Development of the Building / Real Estate Project and permitting occupation of the same; "Contractor" means a person who has entered into a contract with the Developer or any other person authorized by him, for execution of any work, supply of goods, services, materials or equipment and includes (a) its legal representatives; (b) successors in title or permitted assignees; (c) unless otherwise excluded, all sub-Contractors who have similar arrangement with the Contractor for execution of any work, supply of goods, services, materials or equipments; "Developer" means, (a) a person who individually or collectively takes the business risk associated with conceptualizing, getting Permissions and Approvals, constructing, transferring and maintaining an Apartment or Building in terms of this Act; (b) a person who constructs or causes to be constructed or proposes to construct a Building consisting of Apartment, or converts an existing Building or a part thereof into Apartment, for the purpose of transferring all or some of the Apartment to other persons and includes its assigns; or (c) a person who develops or intends to develop a Colony, whether or not it constructs structures thereupon for the purpose of transferring all or some of the plots of Land in a Colony to other persons; Explanation: For the purposes of Sub-section (a) and (b) where the person who constructs or converts a Building into Apartment or develops a Colony and the person who sells Apartment or plots of Land in a Colony are different persons, both of them shall be deemed to be the Developers. (d) any Development Authority or any other public body so notified by the Government, in respect of Allottee of(i) Building or Apartment constructed by them on Lands owned by them or placed at their disposal by the Government; or (ii) plots of Land owned by them or placed at their disposal by the
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(21)
(22) (23) (24)
(25)
(26)
(27)
(28) (29)
(30)
(31)
Government. (e) an Apex State Level Cooperative Housing Finance Society and a Primary Cooperative Housing Society or a Development Authority which constructs Apartment or Building for its Members, in respect of the Allottee of such Apartment or Building; (f) any other person who styles himself as a builder, colonizer, Contractor, Developer, estate developer or by any other name or claims to be acting as such by virtue of a Power of Attorney from the owner of the Land on which the Building or Apartment is constructed or Colony is developed; (g) such other person who constructs any Building or Apartment for sale, lease, license, etc. to general public or for its own use as the Government may, by notification in the Official Gazette, specify; "Development" means the carrying out of building, construction, development, engineering or other operations in, on, over or under the Land or making any material change in any Building or Apartment or Land and includes redevelopment; "Development Charges" means the charges for carrying out Internal Development Works as well as External Development Works; "Development Works" means the Internal Development Works as well as External Development Works; "Director" means a designated partner in the firm and in relation to a Development Authority means the person who takes decisions on matters of policy in its office or designated as such by the said authority; "Engineer or Structural Engineer" means a person who possesses a Bachelor's degree or equivalent from an institution recognized by the All India Council of Technical Education and / or is registered as an Engineer under any law for the time being in force in the State requiring registration of an Engineer; "External Development Works" means water supply, sewerage, drainage systems, roads and electrical works and other necessary works to be executed in the periphery of or outside a Colony for its benefit and / or joint benefit of two or more colonies; Financial Institutions means Scheduled Banks, Housing Finance Companies, Co-operative Banks and Non Banking Financial Institutions performing the role of facilitating real estate development by providing the necessary funds; "Government' means the Government of -----; "Internal Development Works " means: (a) metalling of roads and paving of footpaths; (b) turfing and plantation with trees of open spaces; (c) street lighting; (d) adequate and wholesome water supply; (e) sewers and drains both for storm and sullage water and necessary provisions for their treatment of a Real Estate Project; (f) any other work that the Developer may think necessary in the interest of the proper Development of the Real Estate Project; Integrated Township means and includes serviced housing, commercial premises, hotels, resorts, institutional areas, city and regional level urban infrastructure facilities; "Joint Family" means a Hindu Undivided Family and in the case of other person, a
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(32)
(33)
(34) (35) (36)
(37) (38)
(39)
(40)
(41)
(42) (43)
group the Members of which are by custom jointly in possession of residence; "Land' means a portion of the surface of the earth, composing the ground or soil and everything under it or over it, and things which are attached to the earth, such as Building, structures and trees, things which are permanently fastened to the earth or to things attached to the earth, easements, rights and appurtenances belonging to them and the benefits arising out of them; Lawyer means a person admitted to practice law in a jurisdiction, authorized to perform both civil and criminal legal functions for clients. These functions include drafting of legal documents, giving legal advice, and representing clients before Courts, administrative agencies, boards, etc; "Development Authority / Local Body" means the Corporation/Municipality/Local Body constituted under any law for the time being in force; License means License obtained by the Developer under Sub-section (1) of Section 13 of this Act. "Limited Common Areas and Facilities" means those Common Areas and Facilities which are designated in writing by the Developer before the allotment, sale or transfer of any Apartment, as reserved for use of certain Apartment to the exclusion of the other Apartment; "Marketing" means (a) to sell, (b) to offer to sell and (c) to engage in any transaction or other activity that will or is likely to lead to a sale, lease or license; "Member" means the Member of the Real Estate Management and Regulatory Authority appointed by the Government under Section 3 and includes the Chairperson; and in relation to Real Estate Appellate Tribunal means the Member of the Appellate Tribunal appointed by the Government under Section 45; "Natural Calamity" includes damage through earthquake, cyclone, landslide, drought, flood, fire, tornado, volcano and any other calamity as may be notified by the Government through a notification published in the official Gazette; Permissions and Approvals means pre-construction and post-construction approvals including but not limited to Zoning Approvals / Non-agricultural use approvals / Change of Land Use Certificate (CLUs), Layout plan approvals / License, Building Plan Approvals, Construction Permissions, Environmental clearances, Completion Certificate, and safety approvals, other no-objection certificates from concerned authorities and / or any other Permissions and Approvals required from Competent Authorities of the Government for development and completion of Real Estate Projects; "Person" means and includes, (a) a Company, (b) a Partnership Firm, (c) a Limited Liability Partnership (LLP), (d) a Development Authority, an Association of persons or a body of individuals, whether incorporated or not, (e) a Development Authority, notified public body, trusts, society and cooperative housing society, (f) Joint Family, and / or any other entity which the Government may, by notification in the Official Gazette, specify in this behalf; "Prescribed" means Prescribed in this Act or Rules made there under; Principal means the person who is commissioning/appointing any Real Estate Agent for undertaking any real estate transaction on its behalf;
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(44)
(45)
(46)
(47) (48)
"Property" means the Land, the Building, all improvements and structures thereupon, and all easements, rights and appurtenances belonging thereto, and includes every type of right and interest in Land which a person can have to the exclusion of other persons, such as possession, use and enjoyment free from interference, right of disposition and franchises; "Real Estate Agent" means a person including Land or housing agent, Property or real estate consultants, Property dealers/realtors or known by any other name, who negotiates or acts on behalf of the Principal in a transaction of transfer of its Property, whether by way of sale, lease, license, mortgage, purchase or otherwise, with another person, and receives remuneration for its services in the form of commission, and also includes a person who introduces for negotiation such person or their agents; "Real Estate Management" means and include includes activities of(a) development of colonies and their management; (b) promotion of construction, sale, transfer and management of Building, Apartment or other similar properties; "Regulatory Authority" means the Real Estate Management and Regulatory Authority established under Sub-section (1) of Section 3; Stake Holder means any person, Company or entity either involved or having interest/stake in the real estate sector. These include Developers including Land owners, Development Authority, Contractors, Financial Institutions, Real Estate Agents, specialized service providers like Architects, Engineers, valuers and Lawyers and Allottee;
CHAPTER II REAL ESTATE MANAGEMENT & REGULATORY AUTHORITY 3. Constitution of Real Estate Management & Regulatory Authority (1) With effect from such date as the Government may, by notification decide, there shall be established, for the purposes of this Act, an authority to be called the "Real Estate Management & Regulatory Authority". (2) The Regulatory Authority shall be a body corporate by the name beforesaid having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of Property, both movable and immovable and to contract, and shall, by the said name, sue or be sued. (3) The Regulatory Authority shall consist of a seven Member team drawn from public, private players and industry bodies, consisting of: (a) A Chairperson (appointed by the Government) (b) One Member Secretary (appointed by the Government) (c) Five whole time Members to be drawn from a pool of industry experts in order to ensure equal representation of: (i) Developers; (ii) Financial Institutions; (iii) Real Estate Agents; (iv) Consumer rights specialists; (v) Specialized service providers Architects, Engineers, Lawyers, valuers etc. Provided that a person, who is, or has been, in the service of Government shall not be
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appointed as a Chairperson unless such person(s) has held the post of Secretary or Additional Secretary to the Government of India or any equivalent post in the State/Central Government. Provided further that a person shall not be appointed as Member Secretary unless such person has held the post of Joint Secretary to the Government of India or equivalent post in the Central Government or the State Government. 4. Term of office of Chairperson and other Members (1) The Chairperson and other Members shall hold office for a term not exceeding three years, from the date on which they enter upon their offices or until they attain the age of sixty five years, whichever is earlier. (2) The employee of the Government on its selection as Member shall have to retire from service before Joining as a Member. (3) The salary and allowances payable to and the other terms and conditions of service of the Chairperson and other Members shall be such as may be Prescribed and shall not be varied to its disadvantage after appointment. (4) The Chairperson, Members of the Regulatory Authority shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code. (5) The Chairperson or Member may relinquish its office by giving in writing to the Central Government/State Government notice of not less than three months; or be removed from its office in accordance with the provisions of Section 6 of this Act. Powers of the Chairperson (1) The Chairperson shall have powers of general superintendence and direction in the conduct of the affairs of Regulatory Authority and it shall, in addition to presiding over the meetings of the Regulatory Authority, exercise and discharge such powers and functions of the Authority as may be Prescribed. Removal of Chairperson and Member from office in certain circumstances (1) The Government shall remove a Chairperson / Member in case it ceases to be eligible to hold such office of Chairperson or Member of the Regulatory Authority, if it: (a) has been adjudged as insolvent, or (b) has been convicted of an offence, which, in the opinion of the Government involves moral turpitude; or (c) has become physically or mentally incapable or acting as a Chairperson / Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially its functions as a Chairperson / Member; or (e) has so abused its position as to render its continuance in office prejudicial to the public interest. (2) No such Chairperson or Member shall be removed from its office under clause (iv) or clause (v) of Sub-section (1) unless it has been given a reasonable opportunity of being heard in the matter. Officers of the Regulatory Authority (1) The Governments shall provide the Regulatory Authority with such officers and employees as it may deem fit. (2) The officers and employees of the Regulatory Authority shall discharge their functions under the general superintendence of its Chairperson.
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5.
6.
7.
8.
Powers and functions of Regulatory Authority (1) The functions of Regulatory Authority shall be to; (a) ensure compliance of the obligations cast upon the Stake Holders under this Act, the Regulations and the Rules framed there under; (b) make recommendations on(i) protection of the interest of the Allottee; and (ii) measures to facilitate expeditious clearance/approval of projects from the concerned Development Authority and/or the Local Body of competent jurisdiction, construction and maintenance of structurally safe Building, Apartment and Properties and any other form of assistance/advocacy to promote competition and efficiency in the real estate sector; (c) render advice to the Government in matters relating to the Development of real estate industry; and perform such other functions as may be entrusted to the Regulatory Authority by the Government as may be necessary to carry out the provisions of this Act; (d) monitor the process of collection and timely deployment of Development Charges collected by the Development Authority for a particular area by the means of Scheduled Bank Account opened under Section 41. The Authority may at its discretion demand information and or scrutinize the fund deployment planning and ensure the prioritization of deployment for the area it has been collected; (e) monitor the performance of the state authorities in development of the social infrastructure; (f) make provisions for transparency in the fund deployment of Development Authority, by making it compulsory for them to share key information through periodical publishing of income and expenditure account; (g) take charge of the Scheduled Bank Account and utilize the funds towards the completion of the Development Works and infrastructure development of the area by appointment of a suitable replacement, in case of default by the Development Authority to complete the Development Work within the prescribed time; (h) formulate a set of detailed guidelines for grant of all the statutory Permissions and Approvals. These guidelines shall include recommended standard approval forms and checklist of information and documentary proof to be submitted by the Developer to the Development Authority. Such guidelines shall stipulate the maximum period allowed to the concerned authority to give its decision on the application for approval, failing which the Developer shall be free to approach the Regulatory Authority for a decision; (i) hear appeal from rejection application by a Local Body / Authority from granting any permission or approval; (j) direct Development Authority / Local Body or any other authority to issue Permissions And Approvals as required by the Developer; (k) None of the Permissions and Approvals granted by Development Authority can be withdrawn / cancelled / suspended by the Development Authority without obtaining permission form the Regulatory Authority;
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(l)
(m)
(n) (2)
in consultation with the Government / the Development Authority / Urban Local Bodies, the Regulatory Authority may evolve a consensus and facilitate migration to a framework of revised simplified procedures and norms, requiring the Developers to only indemnify adherence to broad parameters of Land use, FSI, ground coverage, density, and height restrictions, rather than seeking a detailed approval from Local Authorities; formulate sets of model sample Agreements between: (i) an Allottee and a Real Estate Agent; (ii) an Allottee and a Contractor; (iii) an Allottee and a Financial Institution; (iv) a Developer and a Financial Institution; (v) a Developer and a Contractor; (vi) a Developer and other service providers like Lawyers, Architects, Engineers, valuers etc.. perform all other functions as mentioned in this Act.
Upon receiving a complaint in this behalf or suo motto or otherwise, the Regulatory Authority shall adjudicate any dispute between various Stake Holders regarding failure on either part to meet the obligations cast upon them under this Act, the Rules and the Regulations framed there under generally and pass an order within a period of 3 months and an order passed by the Regulatory Authority shall be binding on all parties. Provided that every such order passed by the Regulatory Authority shall be in writing and passed after having provided an opportunity to both parties to be heard. Provided further that an order may be passed by the Regulatory Authority after a period of 3 months in exceptional cases provided the reasons are recorded in writing.
9.
Powers of Regulatory Authority to call for information, conduct Investigations, etc (1) Where the Regulatory Authority considers it expedient so to do, it may, by order in writing(a) call upon any Stake Holder at any time to furnish in writing such information or explanation relating to its affairs as the Authority may require; or (b) appoint one or more persons to make an inquiry in relation to the affairs of any Stake Holders; and (c) direct any of its officers or employees to inspect the books of accounts or other documents of any Stake Holder. (2) Every Stake Holder shall be bound to produce before the Authority making the inquiry, all such books of accounts or other documents in its custody or power relating to, or having a bearing on the subject matter of such inquiry and also to furnish to the Regulatory Authority information relating thereto. Power of Regulatory Authority to Issue directions (1) The Regulatory Authority may, for the discharge of its functions under Sections 8 and 9, issue such directions from time to time to various Stake Holders, as it may consider necessary and such directions shall be
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10.
binding on all concerned. 11. Powers of the Regulatory Authority consequent upon cancellation of the License of the Developer (1) In case of cancellation of the License by the Regulatory Authority under Section 15, the Regulatory Authority may upon receiving an application in this behalf from the Allottee or a request from the Government, arrange to have the remaining Development Work, carried out from the amount of money deposited and available in the Escrow Account, and further recover the charges incurred on the said Development Works from the Developer and the Allottee in the manner Prescribed as arrears of Land revenue. (2) The liability of the Developer for payment of charges for the said Development Works shall not exceed the amount actually recovered by the Developer from the Allottee less the amount actually spent by it on such Development Works. The Developer shall also be liable to pay interest at the rate Prescribed by the government on the amount payable by him. (3) The liability of the Allottee shall not exceed the amount, which it would have to pay to the Developer towards the expenses of the said Development Works under the terms of the Agreement for Allotment or transfer entered into between them. Provided that the Regulatory Authority may recover from the Allottee, with their consent, an amount in excess of the amount payable by them under the aforesaid terms of Agreement for Allotment or transfer. (4) After meeting the expenses on Development Works the balance amount shall be payable by the Regulatory Authority, to the Developer or as the case may be, to the Allottee. (5) Notwithstanding anything contained in the foregoing provisions of this Section, the Regulatory Authority may, with a view to enabling the Developer to transfer the possession of, and the title to, the Land or Building or Apartment to the Allottee within a specified time, after the Development Works have been carried out, authorize the Developer by an order to receive the balance amount, if any, due from the Allottee, after adjustment of the amount which may have been recovered by the Regulatory Authority towards the cost of the Development Works and also transfer the possession of, and the title to, the Land or Building or Apartment to the Allottee within aforesaid time and if the Developer fails to do so, the Regulatory Authority shall, on behalf of the Developer, transfer the possession of, and the title to, the Land or Apartment to the Allottee on receipt of the amount which was so due from them. Functions of the Regulatory Authority for planned Land development and promotion of the real estate sector (1) The Regulatory Authority shall generally take all possible measures for the growth and promotion of healthy, transparent, efficient and competitive real estate sector. To achieve this objective, the Authority shall, in particular, take the following steps: (a) Evolve a consensus among the Central Government / State Governments, the Bureau of Indian Standards (BIS), urban local bodies, builders, Developers and colonizers, Associations of Engineers and Architects and other Stake Holders to follow, on mandatory basis, the structural safety norms Prescribed for the area concerned by the National Building Code/BIS/statutory provisions of the local Building bye-laws etc.
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12.
(b)
(c)
(d) (e)
In consultation with the Government/the Development Authority/the urban Local Bodies, establish a framework of standard procedures and norms for speedy processing and grant of Permissions and Approvals by the Local Bodies/the Development Authority for Real Estate Projects proposed to be taken up by Developers. On behalf of the real estate sector, take up, with the Government, Financial Institutions, Local Bodies, Development Authority and other concerned Stake Holders, advocacy of issues like prompt and easy access to credit/home loans, credible and reliable Land title certification system, speedy and transparent registration of Properties, effective institutional arrangements for proper upkeep and maintenance of built-up properties, statutory framework for equitous and balanced relationship between landlord and tenant and the like. Promote construction of LEED rated environment friendly/green Building and measures for conservation of water and its re-cycling. With a view to encouraging construction of structurally safe but low-cost housing particularly for the weaker sections, promote standardization and use of appropriate construction materials, fixtures and fittings. CHAPTER III LICENSE TO THE DEVELOPER
13.
No development of Land into Colony or construction of Apartment for Marketing without a License (1) No Developer shall develop Land into a Colony of plots of Land or construct a Building or Apartment or convert any existing Building or part thereof into Apartment, for the purpose of Marketing all or some of the Apartment, (hereinafter referred to as a Real Estate Project) without obtaining a License from the Regulatory Authority to develop such Real Estate Project. Provided that no License shall be required when the area of Land proposed to be developed into a Colony does not exceed 1000 (One Thousand) square metres or the number of Apartment proposed to be Marketed does not exceed 4 (Four) or the Carpet Area of the Apartment proposed to be sold does not exceed 400 (Four Hundred) square metres. Explanation: A Developer shall require separate permission of the Regulatory Authority for development of each Colony or construction of each Building or Apartment or conversion of existing Building or part thereof into Apartment. However, if development of each Colony or construction of each Building or Apartment or conversion of existing Building or part thereof into Apartment is to be carried out on a contiguous piece of Land than only one License shall be required.
14.
Conditions for Grant of License by Regulatory Authority (1) For obtaining such License as required under Section 13, the Developer shall be required to make an application in the Prescribed form to the Regulatory Authority, along with the Prescribed fee and detailed information relating to the number and size of Apartment, layout plan, Carpet Area and plinth area of the Apartment and the facilities provided / to be provided and such other information as may be Prescribed. The information to be submitted in the application is indicated in Second Schedule of this Act.
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(2)
On receipt of the application under Sub-section (1), the Regulatory Authority, after making enquiry into the title of the Developer to the Land, extent and situation of the Land, and such other matters as it may deem fit, and after having ascertained that valid Permissions and Approvals have been obtained by the Developer from the Local Body of competent jurisdiction/ Development Authority, shall pass an order in writing, within a period of thirty days granting the License subject to such terms and conditions as may be specified therein or refusing to grant such License indicating in writing the reasons for such refusal.
Provided that if no License is provided by the Regulatory Authority within a period of thirty days, it shall be deemed that a License has been granted to the Developer for the purposes mentioned under Section 13 of this Act. Provided further that no order refusing the grant of License under Sub section (2) shall be passed without affording the applicant a reasonable opportunity of being heard. (3) The Regulatory Authority shall grant a License to the Developer in the Prescribed form, only after: (a) the Developer has entered into an Agreement in the Prescribed form with the Regulatory Authority concerned for completion of the Development Works of the Real Estate Project in accordance with the conditions of the license and to pay proportionate External Development Charges as estimated by the Development Authority for External Development Works to be carried out by the Government or a Development Authority. The License granted under Section 3 shall be valid for a period of five years. On receipt of an application from the Developer for renewal of the License on the ground that delay in completion of the project was for reasons beyond its control, the Regulatory Authority, if satisfied after making such inquiries as it may consider necessary, renew the License for a period of one year at a time on payment of Prescribed fee. Provided that license for Integrated Township projects shall be valid for a period of ten years. 15. Cancellation of License (1) Upon receiving a complaint in this behalf, or suo-moto, the Regulatory Authority may cancel any License issued by it, after being satisfied that the conditions of the License have been violated in such a manner that warrant such cancellation and the Developer has failed to rectify such defect/violations within such period as may be notified by the Regulatory Authority in the notice given to the Developer, after giving an opportunity of being heard to the parties concerned including the Developer and the complainant. Provided that before cancellation of License the Regulatory Authority shall give a show cause notice to the Developer and ask the Developer to rectify such defect/violation. (2) Every such order of cancellation shall be in writing and shall be disposed off within three months of receipt of the complaint or initiation of proceedings, whichever is earlier, under intimation to the Local Body in whose jurisdiction the Land is located.
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(4)
(3)
(4)
Upon cancellation of the License, the Regulatory Authority may cease the Escrow Account opened by the Developer under Section 27 and use the same in the manner provided under Section 11 of this Act. When a License is cancelled under Sub-section (1) of this Section the Regulatory Authority may cause the balance of the Development Works to be carried out, in terms of Section 11 of this Act.
16.
Appeal against the order of the Regulatory Authority (1) Any person aggrieved by an order of the Regulatory Authority under Section 14 or 15 of this Act may, within a period of thirty days of the date on which the order sought to be appealed against is communicated to it, prefer an appeal in writing to the Appellate Tribunal in such form and in such manner as may be Prescribed; Provided that an appeal may be entertained after the expiry of the said period of thirty days, if the applicant satisfies the Appellate Tribunal that it had sufficient cause for the delay in filing the appeal within the prescribed time. CHAPTER IV REGISTRATION OF REAL ESTATE AGENT AND CONTRACTOR
17.
Registration compulsory (1) From such date as may be fixed by the Government by notification in the Official Gazette in this behalf, no Real Estate Agent and a Contractor shall carry on the business of real estate development, or represent or hold itself out as carrying on such business, except under and in accordance with the terms and conditions of the certificate of registration granted under this Act. (2) An application for registration under Sub-section (1) as Real Estate Agent and Contractor shall be made along with a Prescribed fee to Regulatory Authority. On receipt of the application the Regulatory Authority shall, subject to fulfillment of the conditions prescribed in the Rules and Regulations by the Regulatory Authority and / or Government, enter the name of the applicant in the register of Real Estate Agent and Contractor, as the case may, be, maintained under this Act in the Prescribed form and grant a certificate of registration in the Prescribed form, to such person for the conduct of its business in accordance with the terms and conditions of the certificate of registration and the provisions of this Act and the Rules made there under. Provided that if a Real Estate Agent and Contractor is registered under any law for the time being in force in a State for the purpose of regulating its activities in Real Estate Projects, it shall submit its registration number and other details to Regulatory Authority under whose jurisdiction it proposes to work. Conditions for registration - (1) Before registering and granting a certificate of registration to a Real Estate Agent and Contractor under the provisions of Section 17, the Regulatory Authority shall satisfy itself that the Real Estate Agent and / or the Contractor possess the necessary qualifications as may be prescribed by the Regulatory Authority. (2) The name of the Real Estate Agent and Contractor shall not be registered if it(a) is of unsound mind and stand so declared by a Regulatory Authority; or (b) is an undischarged insolvent; or
18.
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(c)
(d) (e)
being a discharged insolvent, has not obtained from the Court having jurisdiction a certificate that its insolvency was caused by misfortune without any misconduct on its part; or has been convicted of an offence of criminal breach of trust, or is otherwise incompetent to make any contract under any law for the time being on force.
19.
Term and renewal of registration (1) Every certificate of registration of a Real Estate Agent and Contractor under Section 17 shall be valid for a period of five years and, on the expiry of such a period, it may be renewed for another period of five years by the Regulatory Authority, on an application along with the Prescribed fee by the Real Estate Agent and Contractor in that behalf; Provided that the conditions referred to in Section 18 continue to be fulfilled and the application has been made at least three months before the expiry of the certificate of registration granted under Sub-section (1) of this Section. Refusal to grant or renew registration (1) If, after giving the applicant an opportunity of being heard, the Regulatory Authority refuses to grant or renew a certificate of registration, it shall record its reasons in writing and communicate the same to the applicant. Cancellation of certificate of registration (1) A certificate of registration granted under Section 17 shall be liable to be cancelled by the Regulatory Authority on the grounds mentioned in Sub-section (2) hereinbelow and by an order made in writing recording the reasons for such cancellation. (2) A certificate of registration is liable to be cancelled, if a Real Estate Agent and / or a Contractor, as the case may be: (a) surrenders the certificate of registration as it does not wish to continue carrying on the business; or (b) has applied to be adjudicated or has been adjudicated an insolvent or is an undischarged insolvent; or (c) has been applied to be adjudicated to be of unsound mind by a competent Court; or (d) has contravened any of the terms or conditions of the certificate of registration or any of the provisions of this Act or the Rules made there under. Notice before cancellation of registration (1) Before cancelling a certificate of registration under Section 21, the Regulatory Authority shall give notice to the Real Estate Agent and / or Contractor specifying the grounds and calling upon him to show cause why the certificate of registration should not be cancelled. (2) After considering the explanation, if any, offered by Real Estate Agent and / or Contractor, the Regulatory Authority may cancel the certificate of registration, or pass such orders as it may deem fit. (3) Notwithstanding anything contained in Sub-section (1) and (2) the Regulatory Authority may suspend the certificate of registration of a Real Estate Agent and / or Contractor, as the case may be, pending decision on the matter of cancellation of the certificate of registration.
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20.
21.
22.
(4)
Where any certificate of registration is suspended or cancelled under this Act, no person shall be entitled to any compensation or the refund of any fee paid in respect thereof. CHAPTER V ROLES AND RESPONSILITIES OF STAKE HOLDERS
23.
Role of Developer (1) After obtaining a License specified in Chapter II, a Developer who develops or intends to develop a Real Estate Project, shall be liable to make available or cause to be made available for inspection, to all persons taking or intending to take a Building or an Apartment on ownership basis, the following information and documents: (a) details of the License issued by the Regulatory Authority; (b) a full and true disclosure of the nature of its title to the Land on which the Real Estate Project is developed or intended to be developed (such title to the Land should be supported by a Land title search report carried out by a Lawyer in accordance with the applicable laws); Provided that if such Land is owned by another person, the consent / relevant documents of the owner of such Land for the development of the Real Estate Project should also be furnished; (c) details of all encumbrances on such Land, including any rights, title, interest or claim of any party in or over such Land; (d) the layout plan of the Real Estate Project; (e) the plan of Development Works to be executed in the Real Estate Project as approved by the Development Authority; (f) the plan and specifications of the Building or Apartment constructed or to be constructed on the Land, common areas and facilities proposed including supply of electricity and water, sewerage and drainage systems, lifts, firefighting equipment as required/ approved by the Development Authority concerned in accordance with the provisions of the Building Regulations in force; (g) the details of the parts of the Colony/Apartment and the appurtenant areas that are intended to be kept as Common Areas and Facilities; (h) the estimated cost of the Building/Apartment proposed to be constructed, or of the Colony to be developed; (i) the names and addresses of the Architect, Engineer and Contractor engaged for construction of the Building or Apartment; (j) commitment to provide a lien release letter, for the Apartment, Building etc, in question, from the financial institution which has provided project construction loan (if any), prior to completion of transaction. (k) such other information and documents and in such manner as may be Prescribed. Issuing of advertisement or prospectus (1) No Stake Holder shall issue or publish an advertisement or prospectus, offering for sale, lease, license, etc. of any Building or Apartment, or inviting persons who intend to take such Building or Apartment to make advances or deposits without filing a copy of the advertisement or prospectus in the office of the Regulatory Authority, before its issue or publication;
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24.
(2)
(3)
The advertisement or prospectus issued or published under Sub section (1) shall contain true statement and disclose the details of the License issued under Section 13, the extent and situation of the Land, the area of Building or Apartment offered for sale, lease, license, etc. nature of title to the Land, and the cost payable and such other matters as may be Prescribed by the Regulatory Authority. The advertisement or prospectus shall be available for inspection at the office of the Developer and at the site where the Building is being constructed or the Land is being developed into a Colony, along with the documents specified in Section 23.
25.
Responsibility of Stake Holders regarding veracity of the advertisement or prospectus (1) When any person makes an advance or deposits on the basis of the information contained in the advertisement or prospectus issued by any Stake Holder and sustains any loss or damage by reason of any untrue statement included therein, it shall be compensated by the responsible Stake Holder in the manner as may be Prescribed in the conditions of the License or as may be determined by the Regulatory Authority. No deposit or advance to be taken by Developer without first entering into an Agreement for Allotment (1) Notwithstanding anything contained in any other law for the time being in force, a Developer shall not accept any sum of money as advance payment or deposit, from a person who is to take a Building or Apartment, as the case may be, without first entering into a written Agreement for Allotment with each such person, as provided for in First Schedule, which shall be admissible as evidence under the Indian Evidence Act, 1872. (2) The Agreement referred to in Sub section (1) shall be in the form as prescribed by Regulatory Authority and shall specify inter alia, the schedule of the development of the project including the construction of Building and Apartment, along with specifications, the dates and manner by which payments towards the cost of the Building or Apartment are to be made by the Allottee and the date on which the possession of the Building or Apartment is to be handed over, as detailed in Second Schedule. Explanation: Where only a refundable application fee is collected from the applicant before draw of lots for specific allotment, such Agreement will be required only after such allotment. (3) The Developer shall not cancel unilaterally the Agreement for Allotment entered into under Sub-section (1) and if it has sufficient cause to cancel it, it shall give due notice to the Allottee to the Agreement and tender a refund of the amount collected by the Developer in terms of the Agreement for Allotment alongwith simple interest, at such rate as may be mutually agreed between the Developer and Allottee in the Agreement for Allotment. Provided that if the Allottee commits a default or breaches any of the terms and conditions of the Agreement entered between him and the Developer under this Section, the Developer shall refund the amount collected after deducting such amount, as may be agreed between the Allottee and the Developer as per Agreement for Allotment. Responsibility of the Developer regarding the account of sums taken from any source (1) The Developer shall maintain a separate account in any Scheduled Bank (to
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26.
27.
be known as Escrow Account) of sums taken by it from any source and on behalf of, persons intending to take or who have taken a Building or an Apartment, as advance towards sale price or for any other purpose, or as deposit including any sum so taken towards the share capital for the formation of a cooperative society or a Company, or towards the outgoings (including ground rent, if any, municipal or other local taxes, charges for water or electricity, revenue assessment, interest on mortgages or other encumbrances, if any, stamp duty and registration fee for the Agreement for Allotment and conveyance deed). (2) The Developer shall hold the said sums for the purposes for which they were given and shall disburse the sums for those said purposes including the development of the Real Estate Project and shall on demand, in writing, by the Regulatory Authority, make full and true disclosure of all transactions in respect of that account on payment of Prescribed charges and shall not utilize these sums for any purpose other than the purpose for which they were so collected. (3) The Developer shall enter into a Confidentiality Agreement with the developer for all the informations, disclosures and details made available to it for the purpose of this Act and shall not disclose such information to any third party. 28. Responsibility of Developer for outgoings till transfer (1) A Developer who has collected from the Allottee, sums for the payment of outgoings shall pay all outgoings (including ground rent, municipal or other local taxes, charges for water or electricity, interest on mortgages or other encumbrances, if any) until it transfers the physical possession of the Property to the Allottee. (2) Where any Developer fails to pay all or any of the outgoings collected by him from the Allottee before transferring the Property to such Allottee, the Developer 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. (3) A Developer shall take all required measures for protection and safety of Property as Prescribed in the Second Schedule. Refund of amount / Payment of Interest - (1) If the Developer fails or is unable to give possession, of a Building or an Apartment: (a) due to discontinuance of its business as a Developer on account of suspension or cancellation of its License under this Act or for any other reason, except for the reason that the delay to give possession is due to non renewal of License by the Regulatory Authority, it shall be liable, without prejudice to the other actions to which it may be liable, to refund the amounts received by it under the Agreement for Allotment alongwith simple interest at such rate as may be mutually agreed between the Developer and Allottee in the Agreement for Allotment; (b) in accordance with the terms of the Agreement for Allotment or, as the case may be, duly completed by the date specified therein or such further time as may be extended by the Regulatory Authority/ Development Authority, it shall be liable to pay simple interest to the Allottee at such rate as may be mutually agreed between the Developer and Allottee in the Agreement for Allotment;
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29.
(2)
The interest referred to in Sub-section (1)(a) shall be computed on the installments / monies received by the Developer from the date it received such installment / monies from the Allottee till the date the amount or and interest thereon is refunded in full. The interest referred to in Sub-section (1)(b) shall be chargeable from the due date of handover of possession in terms of the Agreement for Allotment or such extended date till the handover of possession by the Developer to the Allottee.
30.
Responsibility of the Developer to the Allottee during project period (1) Once the Developer enters into an Agreement for Allotment or lease or license with the Allottee for transfer of the ownership by sale or lease or license of the Building or Apartment, it shall be responsible to make available or cause to be made available, in addition to the information specified in Section 23, the following information to the said Allottee in respect of the Real Estate Project: (a) to display plans along with structural designs and specifications, approved by the Development Authority, at the site or such other place as may be specified in the License before and during construction of the Building or Apartment and make them available for inspection to persons taking a Building or Apartment on ownership basis; (b) to disclose the nature of fixtures, fittings and amenities, including the provision for one or more lifts, provided or to be provided; (c) to disclose on reasonable notice or demand, the Prescribed particulars/specifications in respect of the design and the materials to be used in construction; and (d) to display certificate signed by the owner of Land, Architect and Structural Engineer regarding the compliance of statutory provisions related to the relevant revenue, planning, Building and structural safety laws; (2) The Developer shall also be responsible to furnish on demand and on payment of Prescribed charges, true copies of such of the documents mentioned above, to the Allottee individually or collectively. (3) The Developer shall also prepare and maintain a list of Apartment with their numbers, the names and addresses of the persons, who have taken or agreed to take Apartment, the price charged or agreed to be charged and the terms and conditions, if any, on which the Apartment are taken or agreed to be taken: Provided further that the Developer shall provide for Apartment belonging to weaker Sections of the society, as per the Government orders/policy guidelines in this regard, who may be rendering certain services to the Allottee or occupiers thereof, or allotted in such manner as the Government may specify in this behalf. (4) It shall be the responsibility of the Developer to obtain Completion Certificate of the Building or Apartment from the concerned Development Authority as per Building Regulations in force and make it available to the Allottee individually or to an authorized collective of Alottees as the case may be. The Regulatory Authority, on being satisfied that the Real Estate Project is constructed to its satisfaction, shall assist and help the Developer in obtaining the Completion Certificate. If, after the construction of the Building or Apartment, the Developer does not apply, within a reasonable time, or is unable to so apply, for an Completion Certificate from the concerned Development Authority, the Allottee of the Building or Apartment may apply for such certificate to the said authority
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and such authority shall grant the required certificate. The cost incurred by the Allottee in obtaining the above certificate shall be recoverable from the Developer. 31. Handing over of Apartment, common areas and documents to the Association (1) After obtaining the Completion Certificate the Developer shall submit a copy thereof to the Regulatory Authority and thereafter take all necessary steps to complete its title and convey the exclusive ownership of the Apartment/Building and the undivided interest in the Common Areas and Facilities to such Apartment /Building to the person in whose favour it had executed an Agreement for Allotment of that Apartment / Building. (2) For the purposes specified in Sub-section (1) the Developer shall execute a conveyance deed of the Property containing such particulars as may be Prescribed, within three months from the date of giving possession of the Apartment/Building and also deliver all documents of title relating to that Property which may be in its possession. The Developer shall not reserve any right in that Property except to the extent of the Apartment which it is taking up in its own name and the Apartment which are meant for sale, lease, license but are yet to be sold or leased or licensed. (3) If either party fails to execute and register the conveyance deed of Apartment and other relevant documents within a period of three months as specified in Subsection (2), the Regulatory Authority may, either on a complaint or suo moto impose for each Apartment for which there is a default, a penalty up to five percent of the price of the Apartment to maximum of one lakh rupees, plus a further minimum penalty of one thousand 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 under Sub-section (3) shall be in addition to any action that may be taken under the Indian Stamp Act, 1899 or the Registration Act, 1908. (5) After obtaining the Completion Certificate as specified in Sub-section (4) of Section 30 and handing over physical possession of the Building / Apartment to the Allottee in terms of this Section, it shall be the responsibility of the Developer to hand over the possession of the Common Areas and Facilities and also the originals of the plans and documents to the Association formed and registered under the provisions of this Act or any other Act in force (Third Schedule). Provided that such handing over of physical possession of the Common Areas and Facilities shall be completed within a period of one year from the date of issue of the Completion Certificate or the date by which at least 75% of the Building or Apartment have been handed over to the Allottee, whichever event occurs earlier, subject to the condition that the Developer shall be responsible for the sale, lease, license, etc. and transfer of the balance Building or Apartment and for the expenditure on the maintenance of the Common Areas and Facilities, which it shall have the right to charge as Common Expenses from the Allottee, till such time as 75% of the Building or Apartment are not sold or transferred by the Developer Association of the Allottee (1) It shall be the responsibility of every Allottee of a Real Estate Project to take the Membership of an Association of the said project at the time of entering into the Agreement for Allotment specified in Section 26 and to make such payments towards this Association and discharge such duties and responsibilities as may
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be Prescribed by the Regulatory Authority in this behalf. Provided that till such time as specified in Section 31 of this Act, the Developer shall be responsible for registration and management of the said Association. (2) If the Developer fails to take steps to form an Association, the Allottee shall apply to the Regulatory Authority for registration of the Association. 33. Adherence to approved plans, and project specifications by the Developer (1) After the layout plan of the Colony or the plans and Permissions and Approvals, as the case may be, are approved by the Development Authority and the same are disclosed or furnished to the person who agrees to take the Building or Apartment, the Developer shall not make any alterations in the structures described therein without the previous consent of the Development Authority. Provided however that after the possession of the Building or Apartment is handed over to the Allottee, the Developer shall not be responsible if additions and alterations are done in the Building or Apartment by the Allottee in violation of the Building Regulations and without the consent of the Developer, project Architect and project Engineer. (2) Subject to the provisions of Sub-section (1), the Building or Apartment shall be constructed and completed in accordance with the Permissions and Approvals, plans and structural designs and specifications as aforesaid and if any defect in the Building or Apartment or in the material used in the construction is brought to the notice of the Developer within a period of one year from the date of handing over possession, it shall, wherever possible, be rectified by the Developer without further charge to the Allottee who have taken the Building or Apartment and in other cases such Allottee shall be entitled to receive reasonable compensation for such defects. (3) Where there is a dispute as regards any defect in the Building or Apartment or material used in the construction, or the reasonable possibility for the Developer to rectify any such defect or the amount of reasonable compensation payable in respect of any such defect, which cannot be or is not rectified by the Developer, the disputes shall, on payment of such fee as may be Prescribed and within a period of two years from the date of handing over possession, be referred for decision to the Regulatory Authority and the Regulatory Authority shall, after giving a reasonable opportunity of being heard to the parties and after making further enquiry, if any, record its decision. (4) A Developer who fails to comply with the provisions of Sub-section (1) and/or (2), shall be punishable with fine, to be decided by the Regulatory Authority, which may extend to a maximum of rupees one lakh. Provided that the Developer shall be fully entitled to recover the entire amounts paid by it to the Allottee under Sub-section (4) hereinabove, from any Stake Holders incase the penalty levied upon the Developer was due to the negligence of such Stakeholder(s) and not due to actions attributable to the Developer. Supply of essential services (1) It shall be the responsibility of the Developer to provide essential services such as water supply, electricity, light in passages and staircases, lifts and sanitary services as per Agreement for Allotment to the Allottee of the Building or Apartment or to any person in authorized occupation thereof till such time and in such manner as specified in the Agreement for Allotment or otherwise Prescribed by
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the Regulatory Authority in this behalf, and such services shall not, except with just and sufficient cause/notice, be cut off, withheld, curtailed. (2) The details of the essential supplies and services referred to in Sub section (1) shall be kept by the Developer in the form of a statement and shall be made available on demand to the Allottee or Association or the Regulatory Authority. (3) In case of the failure of the Developer to provide and maintain the supply and services as provided for in terms of this Section, the Regulatory Authority shall upon receipt of an application in this behalf or suo moto, make an enquiry into the matter and make such order as may be required for the compliance with the provisions of this Section. (4) If the supply or service is not restored before the date specified in the order made under Sub-section (3), the Developer or the person responsible for the management and maintenance of the Building or Apartment shall, upon a further direction by the Regulatory Authority, be liable to a penalty which may extend to one thousand rupees for each day during which the default continues after the date specified in the said order. 35. Responsibilities of Allottee (1) An Allottee who enters into a transaction for the purchase relating to a Property shall: (a) make a well informed decision with reference to purchase; (b) ensure that it has acted knowledgeably, prudently and without compulsion; (c) arrange for and make timely payments of the installments, as agreed with the Developer; (d) ensure true disclosure in respect of informations provided by it; (e) fulfill all its part of the Commitments as agreed upon in the Agreement for Allotment with the Developer. General liabilities of Allottee (1) Every Allottee who has entered into an Agreement for Allotment to take an Apartment under Section 26 shall be responsible to make necessary payments in the manner as specified in the said Agreement for Allotment and shall after taking over the possession of the Apartment or Building under Section 31 pay at the proper time and place, the proportionate share of the municipal taxes, water and electricity charges, ground rent, if any, and other charges, in accordance with such Agreement for Allotment. Responsibilities of a Contractor (1) A Contractor who enters into a contract for the construction of a Property, Building or Apartment with a Developer or a Allottee shall; (a) ensure adherence to all the general and special conditions of contract and ensure that all constructions taking place are in accordance with the stipulated quality standards; and (b) ensure that all constructions taking place are in accordance with the stipulated safety standards, mentioned under this Act and adhere to the agreed construction timelines; and (c) maintain the stipulated professional liability cover, so as to insure the ongoing construction from any loss on account of its actions. Responsibilities of Development Authority (1) A Development Authority in whose jurisdiction any Development activity for the transfer relating to a Property is taking place
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36.
37.
38.
shall be responsible to; (a) ensure that all constructions taking place have all the necessary Permissions and Approvals with in the time stipulated under this Act and Rules made there under; (b) communicate the queries within a stipulated time frame, in case the submissions from Developers are found to be short of this actual requirement; (c) ensure that all External Development Charges and Internal Development Charges collected from the Developer are utilized towards the Development Works for which they have been collected; (d) adhere to Development Works and infrastructure development timelines, in order to support the real estate Development in the area and monitor actual construction taking place and their compliance with the Permissions and Approvals; (e) inform general public and take remedial action on unapproved constructions; (f) grant Completion Certificate to the Developer after necessary inspections with in the time stipulated under this Act and Rules made there under. 39. Responsibilities of Financial Institutions (1) Notwithstanding anything contained in any other law for the time being in force, a Financial Institution, which extends financial assistance to Developer, builder, Company, individual to develop a Colony, Building or Apartment and who constructs or intends to construct a Building or Apartment, shall in all transactions; (a) ensure adherence to credit policies and norms of Reserve Bank of India / National Housing Bank; (b) ensure due diligence of the Real Estate Project including but not limited to; (i) legal due diligence with respect to its title being clear, marketable and without any encumbrance; (ii) technical due diligence with respect to all statutory Permissions and Approvals of the Real Estate Project being in place; (iii) credit appraisal of the Developer with respect to their ability to repay; (c) ensure that the loans granted to Developers for development of a Real Estate Project are utilized for the purpose, for which they were granted; (d) ensure and monitor construction of the Real Estate Project and ensure subsequent disbursement as per the agreed terms and conditions; (e) ensure that the charge created on a project are only for those portions of the project, which are unsold by the Developers as on date of loan disbursement, and further ensure No Objection Certificates (NOCs) / charge release letters are issued for all the subsequent sale of Apartment or Building by the Developer; (f) ensure safe custody of original Property documents, if collected from the Developer, and their timely return on completion of loan repayment. (2) Notwithstanding anything in any other law for the time being in force, a Financial Institution, which extends financial assistance to persons taking or intending to take an Apartment or Building on ownership basis, shall in all transactions;
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(a)
(b) (c) (d) (e)
ensure complete transparency in loan appraisal process, conditions imposed on the Allottee as a part of the loan Agreement, rate of interests, nature of interest rates (Fixed / Floating), tenure of loan etc; ensure legal and technical conditions related to Property to be fulfilled prior to loan disbursement; disclose payment terms, stages at which loan disbursements would take place, along with the process of ascertaining these stages; communicate deviations observed during legal and technical due diligence process. ensure safe custody of Property documents if collected from the Allottee and ensuring their return on completion of mortgage repayment.
40.
Responsibilities of Real Estate Agent and Contractor (1) Notwithstanding anything contained in any other law for the time being in force, a Real Estate Agent and Contractor shall; (a) obtain a certificate of registration for business in the real estate sector from the Regulatory Authority; (b) not act on behalf of Principal without a mandate; (c) act in the best interest of the Principal, in accordance with the instructions from the Principal; (d) not advertise any Property without the written consent from the Principal; (e) act fairly and honestly without misleading any party in a negotiation and transaction; (f) properly supervise the agency business being carried out by its employees / sales representatives, and ensure that they abide by the code of conduct, Rules and Regulations applicable; (g) not use or disclose any confidential information obtained while working on behalf of the Principal; (h) communicate all written offers to Principal as soon as possible; (i) not demand and accept any commission from any person other than the Principal; (j) disclose its relationship with the parties concerned (if any) in case the same is likely to result in a conflict of interest; (k) do all other acts as may provided under this Act and Rules made there under.
CHAPTER VI INFRASTRUCTURE DEVELOPMENT CHARGES 41. Infrastructure Development Charges collected from Developers (1) The Development Authority shall maintain a separate account in any scheduled bank (to be referred as Scheduled Bank Account), of sums taken by them from Developers intending to develop or developing Real Estate Project involving construction of Apartment or Building, as charges towards Development Works and the Development Authorities shall hold the said moneys for the purposes for which they were collected and shall disburse the same for those purposes including but not limited to the construction of roads, storm water
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drains, water supply and sewerage network, street lighting and other Development Works, and shall on demand, in writing, by the Regulatory Authority make full and true disclosure of all transactions in respect of that account and shall not utilize for any other purpose or in any other area the amounts so collected for a particular purpose, prior to completion of infrastructure development of the area. CHAPTER VII MAINTENANCE OF ACCOUNTS, REGISTERS AND RECORDS AND AUDIT 42. Maintenance of accounts and records (1) A Developer who has taken a License under Section 13 of this Act shall maintain such accounts, registers and records in such form and manner, as may be Prescribed and make them available for inspection or audit as may be required by the Regulatory Authority. (2) The Regulatory Authority shall maintain such a register as may be Prescribed showing relevant particulars of all cases in which License under Section 13 is granted or refused by it and the said register shall be available for inspection, without any charges. Audit (1) The Developer or Real Estate Agent or Contractor, as the case may be, shall get its accounts audited within six months after the close of every financial year by a chartered accountant, and shall produce a statement of accounts duly certified and signed by such chartered accountant in the manner Prescribed and it shall be verified during the audit that the amounts collected for a particular purpose have been utilized for that purpose. Inspection of accounts or records of business (1) The Regulatory Authority may inspect or cause to be inspected, at any time during business hours, any accounts or records of a Developer or an Real Estate Agent or a Contractor, as the case may be, relating to its business in order to satisfy itself that the requirements of this Act and the Rules made there under or the terms and conditions of the License granted under Section 13 to it are duly complied with. CHAPTER VIII APPELLATE TRIBUNAL 45. Establishment of Appellate Tribunal (1) The Government shall, by notification, establish an Appellate Tribunal, to be known as the Real Estate Appellate Tribunal to hear and dispose off appeals against a recommendation or an order issued by the Regulatory Authority under Section 8 or a direction issued under Section 10. (2) The Appellate Tribunal shall consist of a Chairperson and not more than two Members to be appointed by the Government and the selection of Chairperson of the Appellate Tribunal shall be made by the Government in consultation with the Chief Justice of ----. (3) A person shall not be qualified for appointment as the Chairperson or a Member of the Appellate Tribunal unless it (a) in the case of Chairperson, has been a Judge of a High Court; (b) in the case of a Member, has held the post of Secretary to the Government or any equivalent post in the Government or a person who is well versed in
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43.
44.
the field of urban development, finance, law or management. 46. Term of office of Chairperson and other Members (1) The Chairperson and other Members shall hold office for a term not exceeding three years, from the date on which they enter upon their offices or until they attain the age of sixty eight years, whichever is earlier. (2) The employee of the Government on its selection as Member shall have to retire from service before joining as a Member. (3) The salary and allowances payable to and the other terms and conditions of service of the Chairperson and other Members shall be such as may be Prescribed and shall not be varied to its disadvantage after appointment. (4) The Chairperson, Members and other officers and employees of the Appellate Tribunal shall be deemed to be public servants within the meaning of Section 21 of the Indian Penal Code. (5) The Chairperson or Member may relinquish its office by giving in writing to the Government notice of not less than three months; or be removed from its office in accordance with the provisions of Section 47. Removal of Chairperson and Member from office in certain circumstances (1) The Government may remove from office, the Chairperson or any Member of the Appellate Tribunal who (a) has been adjudged an insolvent; or (b) has been convicted of an offence which, in the opinion of the Government involves moral turpitude; or (c) has become physically or mentally incapable of acting as the Chairperson or a Member; or (d) has acquired such financial or other interest as is likely to affect prejudicially its functions as the Chairperson or a Member; or (e) has so abused its position as to render its continuance in office prejudicial to the public interest. (2) Notwithstanding anything contained in Sub-section (1), the Chairperson or Member of the Appellate Tribunal shall not be removed from its office on the ground specified in clause (d) or (e) of that Sub-section unless the ---- High Court on a reference being made to it in this behalf by the Government, has, on an enquiry, held by it recommended that the Chairperson or a Member ought to be removed on such ground or grounds. (3) The Government may suspend from office, the Chairperson or a Member of the Appellate Tribunal in respect of whom a reference has been made to the ---- High Court under Sub-section (2), until the Government has passed an order on receipt of the report of the High Court on such reference. Officers of the Appellate Tribunal (1) The Government shall provide the Appellate Tribunal with such officers and employees as, it may deem fit. (2) The officers and employees of the Appellate Tribunal shall discharge their functions under the general superintendence of its Chairperson. Appeals to the Appellate Tribunal (1) The Government or Development Authority or any person aggrieved by any direction or decision of the Regulatory Authority may prefer
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47.
48.
49.
an appeal to the Appellate Tribunal. (2) Every appeal under Sub-section (1) shall be preferred within a period of thirty days from the date on which a copy of the direction or order or decision made by the Regulatory Authority is received by the Government or the Development Authority or the aggrieved person and it shall be in such form, and accompanied by such fee as may be Prescribed; Provided that the Appellate Tribunal may entertain any appeal after the expiry of thirty days if it is satisfied that there was sufficient cause for not filling the appeal within the prescribed time. (3) On receipt of an appeal under Sub-section (1), the Appellate Tribunal may, after giving the parties to the dispute or the appeal an opportunity of being heard, pass such orders thereon as it thinks fit. (4) The Appellate Tribunal shall send a copy of every order made by it to the parties to the dispute or the appeal and to the Regulatory Authority, as the case may be. (5) The appeal preferred under Sub-section (1) shall be dealt with by it as expeditiously as possible and endeavour shall be made by it to dispose of the appeal finally within ninety days from the date of receipt of appeal. Provided that where any such appeal could not be disposed of within the said period of ninety days, the Appellate Tribunal shall record its reasons in writing for not disposing of the appeal within the said period. (6) The Appellate Tribunal may, for the purpose of examining the legality or propriety or correctness of any direction or order or decision of the Regulatory Authority referred to in the appeal preferred under Sub-section (1), on its own motion or otherwise, call for the records relevant to disposing of such appeal and make such orders as it thinks fit. 50. Powers and functions of Appellate Tribunal (1) The Appellate Tribunal shall be guided by the principles of natural justice and, subject to the other provisions of this Act, the Appellate Tribunal shall have powers to regulate its own procedure. (2) The Appellate Tribunal shall have, for the purpose of discharging its functions under this Act, the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 while trying a suit in respect of the following matters, namely: (a) summoning and enforcing the attendance of any person and examining him on oath; (b) requiring the discovery and production of documents; (c) receiving evidence on affidavits; (d) requisitioning any public record or document or a copy of such record or document, from any office; (e) reviewing its decisions; and (f) dismissing an application for default or deciding it ex parte. Order Passed by Appellate Tribunal to be executable as a Decree (1) An order passed by the Appellate Tribunal under this Act shall be executable by the Appellate Tribunal as a decree of Civil Court, and for this purpose, the Appellate Tribunal shall have all the powers of a Civil Court. (2) Notwithstanding anything contained in Sub-section (1), the Appellate Tribunal may transmit any order made by it to a Civil Court having competent jurisdiction
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51.
and such Civil Court shall execute the order as if it were a decree made by that Court. 52. Penalty for willful failure to comply with orders of Appellate Tribunal (1) If any person willfully fails to comply with the orders of the Appellate Tribunal it shall be punishable with fine which may extend to one lakh rupees and in case of a second or subsequent offence with fine which may extend to two lakh rupees and in the case of continuing contravention with additional, fine which may extend to fifty thousand rupees for every day during which such default continues. Appeals to the High Court (1) Notwithstanding anything contained in the Code of Civil Procedure, 1908 or any other law, an appeal shall lie against any order, not being an interlocutory order, of the Appellate Tribunal to the High Court on one or more of the grounds specified in Section 100 of that Code of Civil Procedure, 1908. (2) No appeal shall lie against any decision or order made by the Appellate Tribunal with the consent of the parties. (3) Every appeal under this Section shall be preferred within a period of ninety days from the date of the decision or order appealed against. (4) Provided that the High Court may entertain the appeal after the expiry of the said period of ninety days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the appeal within the prescribed time. CHAPTER IX OFFENCES AND PROSECUTION 54. Contravention of Section 23, Section 24, Section 26, Section 27, Section 28, Section 29, Section 31, Section 32 - (1) Any Developer who, without reasonable cause, fails to comply with, or contravenes, the provisions of Section 23 or Section 24 or Section 26 (1) & (2), Section 27 (1), Section 28 (1), Section 29 (1) & (2), Section 31 (1) & (2), Section 32 shall be punishable with fine which may extend to rupees one lakh. Contravention of Section 27 (2) (1) Any Developer who contravenes the provisions of Section 27 (2) by misusing any amount advances or deposited with him for any purpose, other than the purposes mentioned in Section 27, shall be punishable with fine which shall not less than rupees two lakhs and which may extend to rupees ten lakhs or the amount so misused, whichever is higher. Contravention of Section 30 (1) Any Developer or Architect or Engineer who, without reasonable cause, fails to comply with or contravenes, any of the provisions of Section 30 or the Building Regulations, shall be punishable with fine which may extend to rupees one lakh. Contravention of Sections 35 and 36 (1) Any Allottee who, without reasonable cause, fails to comply with or contravenes the provisions of Section 35 or 36 shall entitle the Developer to the following remedies: a. charge simple interest on the amounts due; or b. charge penalty upto the extent of Rupees one lakh; or c. cancel the Agreement
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53.
55.
56.
57.
58.
Contravention of Sections 38, 39 and 40 (1) Any Development Authority/Financial Institutions/Real Estate Agents as the case may be, without reasonable cause, fails to comply with or contravenes, the provisions of Sections 38, 39 and 40 as the case may be, shall be punishable with fine which may extend to rupees one lakh. Contravention of other provisions of this Act or Rules made there under (1) Any Developer or Architect or Engineer or estate agent or Contractor who, without reasonable cause, fails to comply with or contravenes, any other provision of this Act or of any Rules made there under, or does not pay the penalty imposed on him by Regulatory Authority shall, if no other penalty is expressly provided for the offence, be punishable with fine which may extend to rupees ten thousand. Offences by companies (1) Where an offence under this Act has been committed by a Company, every person who at the time the offence was committed was in charge of, or was responsible to, the Company for the conduct of the business of the Company, as well as the Company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Provided that nothing contained in this Sub-section, shall render any such person liable to any punishment under this Act if it proves that the offence was committed without its knowledge or that it exercised all due diligence to prevent the commission of such offence. (2) Notwithstanding anything contained in Sub-section (1), where an offence under this Act has been committed with the consent or connivance of, or is attributable to, any neglect on the part of any Director, manager, secretary or other officer of the Company, such Director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation:- For the purpose of this Section, (a) "Company" means any body corporate and includes a firm or other Association of individuals; and (b) "Director in relation to a firm, means a partner in the firm. Other Offence (1) Any other offence committed by any Stake Holder and not covered under this Act shall be tried under the Court of law having competent jurisdiction. Jurisdiction of Court (1) No Court inferior to that of a Metropolitan Magistrate or Judicial Magistrate of the First Class shall try any offence punishable under this Act. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, it shall be lawful for the Metropolitan Magistrate or Judicial Magistrate of the First Class to pass a sentence of fine, in excess of its powers under that Code. Prosecution of offences (1) No prosecution for an offence punishable under this Act shall be instituted except with the previous sanction of the Regulatory Authority or any person authorized in this behalf by the Regulatory Authority. Compounding of offences (1) The Regulatory Authority may, either before or after the institution of the prosecution, compound any offence punishable under this Act, subject to such conditions and restrictions and on payment of such amount to it as may be specified.
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59.
60.
61.
62.
63.
64.
(2)
Where an offence has been compounded under Sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded and the offender, if in custody, shall be discharged forthwith. CHAPTER X Miscellaneous
65.
Civil Courts not to have jurisdiction (1) No Civil Court shall have jurisdiction to entertain any suit or proceeding in respect of any mater which the Regulatory Authority/Appellate Tribunal is empowered to determine under this Act and no injunction shall be granted by any Court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. Power to make Rules (1) The Government may, subject to the condition of previous publication, by notification in the Official Gazette, make Rules to carry out the provisions of this Act. (2) Every Rule made under this Act shall be laid, as soon as may be after it is made, before each House of the Assembly, while it is in session for a total period of thirty days, which may be comprised in one session or in two or more successive sessions and if, before the expiry of the session immediately following the session or the successive session aforesaid, both Houses agree in making any modification in the Rule or both Houses agree that the Rule should not be made, the Rule shall thereafter have effect only in such modified form or be of no effect, as the case may be, so however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that Rule. Delegation of Powers (1) The Government may, by notification in the Official Gazette, delegate all or any of the powers exercisable by it under this Act (except the powers to make Rules) to any of its officers subject to such restrictions and conditions as may be specified in such notification. Protection of acts done in good faith (1) No suit, prosecution or other legal proceedings shall be entertained in any Court against any officer or employee of the Government or against the Development Authority or the Regulatory Authority or the Appellate Tribunal for anything which is in good faith done or intended to be done in pursuance of the provisions of this Act or Rules made there under. Act to have overriding effect (1) The provisions of this Act shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force.
66.
67.
68.
69.
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First Schedule Form of the Agreement for Allotment and Accompanying documents (1) The Agreement for Allotment Prescribed under Section 26 shall contain, inter alia, in the case of Apartment the following particulars, namely: (i) details of the responsibility of the Developer to construct the Apartment according to the plans and specifications, approved by the Development Authority, which is required so to do under any law for the time being in force; the date by which the possession of the Apartment is to be handed over to the Allottee; the area of the Apartment, including the area of the balconie(s) which should be shown separately; the price of the Apartment, including the proportionate price of the common area and facilities which should be shown separately, to be paid by the Allottee and the intervals at which the instalments thereof may be paid; the precise nature of the Association to be constituted of the Allottee who have taken or are to take the Apartment; the nature, extent and description of the Common Areas and Facilities; the percentage of undivided interest in the Common Areas and Facilities appurtaining to the Apartment 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 Apartment; the statement of the use for which the Apartment is intended and restrictions on its use, if any; the responsibility of the Developer to develop the requisite infrastructure as per approved standards. an undertaking in the Prescribed form that the Developer will undertake all measures necessary for the safety of the Building or Apartment under the National Building Code published by the Bureau of Indian Standards and any other measures notified by the Government and the Development Authority. rights of Developer in case of default / breach of conditions by the Allottee.
(ii) (iii) (iv)
(v) (vi) (vii)
(viii) (ix) (x)
(xi) (2)
The copies of following documents shall be attached with the Agreement, namely: (i) (ii) the License granted by the Regulatory Authority under Section 13; certified copy from any relevant revenue record showing the nature of the title of the Developer to the Apartment or the Land on which Apartment are constructed or are to be constructed; the plans and specifications of the Apartment as approved by the concerned Development Authority; and the details of the specifications of the nature of fixtures, fittings, amenities and other materials to be used in the construction of the Apartment.
(iii) (iv)
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Second Schedule Measures for protection and safety of Property to be taken by the Developer (1) A Developer and the Architect and Engineer engaged by it, shall comply with the measures for safe construction and protection of properties against natural calamities as per Building bye-laws, provisions of the National Building Code and other standards published by the Bureau of Indian Standards and such other measures as the Government may, by notification in the Official Gazette, specify in this behalf. For the purposes of compliance with the measures referred to in Sub-section (1), the Developer shall enter into separate Agreements and engage the services of an Architect and a Structural Engineer and at no stage the work of construction of the Building or Apartment may be continued without engaging the services of Architect or Engineer, as the case may be. The Developer and the Architect and Engineer engaged by it shall jointly file a certificate, duly signed by all of them with the Regulatory Authority at such intervals as it may specify certifying that the Building or Apartment shall be constructed in accordance with the plans approved by the concerned authority and that all the measures referred to in Sub-section (1) are being complied with in respect of the Building or Apartment under construction to ensure their safe construction and protection against the natural calamities, or otherwise. If for any reason there is change of Architect or Engineer during the construction of the Building or Apartment, the Developer shall: (a) engage immediately another Architect or Engineer, as the case may be, and the incoming Architect or Engineer shall satisfy himself about the compliance of the aforesaid measures as mentioned in the previous certificates submitted to the Regulatory Authority, before taking the responsibility of certificates in future regarding compliance of the said measures. (b) inform the Regulatory Authority about the engagement of the other Architect or Engineer, as the case may be. The Developer shall keep and maintain all records relating to the construction of the aforesaid Building or Apartment by it.
(2)
(3)
(4)
(5)
Measures for Insurance against loss or death (1) The Developer shall obtain an insurance policy including third party insurance for the Building and / or Apartment, during the period of its construction against loss or damage by natural calamities for the cost of replacement of such Building or Apartment. The insurance policy shall be in the name of such Manager or the Board of Managers as may be authorized by the Developer or the Association as trustee for each of the Building or Allottee of Apartment in the percentage specified in the declaration. The premium of insurance shall be deemed to be part of Common Expenses. The aforesaid provisions for insurance shall be without prejudice to the right of each Allottee of an Apartment to insure its Apartment for its benefit. The Developer shall insure with any general insurance Company and obtain an insurance policy or policies covering the liability of any loss or death caused by any defect in Land, Building or Apartment and shall keep the Regulatory Authority informed of payment of premium from time to time against such insurance policy or policies.
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(2)
(3) (4) (5)
Third Schedule Developer's responsibility to form Association (1) Where an Association is required to be formed under this Act or any other Act in force, the Developer shall submit an application to the Regulatory Authority, after obtaining an Completion Certificate for the Apartment and within three months of the allotment, sale or transfer of one-third of the Apartment, for registration of the Association of persons who have taken the Apartment, as members of such Association and the Developer shall join as an associate member in respect of the Apartment which have not been allotted, sold or transferred. The Regulatory Authority shall convene a meeting of the aforesaid Allottees / members to ascertain whether the majority desires that the Association should function as a cooperative society or as a limited Company, and shall get the Association registered accordingly under the provisions of the relevant law for the time being in force. After the Association is formed, the Developer shall furnish to the Association, (a) a copy of the sanctioned plan of the Apartment / Building; (b) the completion plan of the Apartment and relevant certificates from the concerned Architects and Engineers; (c) design and drawings of the structures and services in the said Apartment; (d) operation and maintenance manual of all services in the Apartment; and (e) any other information/documentation relevant or/and necessary for matters connected with or incidental to operation and maintenance of Building or Apartment, as the case may be.
(2)
(3)
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Draft Model Bill for Real Estate Management - (NAREDCO)

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20. 21. 22.

Infrastructure Development Charges collected from Developer

Draft Model Bill for Real Estate Management - (NAREDCO)

49. 50. 51. 52. 53.

65. 66. 67. 68. 69.

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Draft Model Bill for Real Estate Management - (NAREDCO)

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(5) (6) (7)

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(22) (23) (24)

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(34) (35) (36)

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Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

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(b) (c) (d) (e)

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Draft Model Bill for Real Estate Management - (NAREDCO)

Draft Model Bill for Real Estate Management - (NAREDCO)

(ii) (iii) (iv)

(v) (vi) (vii)

(viii) (ix) (x)

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(3) (4) (5)

Draft Model Bill for Real Estate Management - (NAREDCO)

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