Policy for builders to surrender licence under PAPRA in the works
MOHALI: The state department of housing and urban development will soon come up with a new policy for allowing promoters to surrender colony licences issued under the Punjab Apartment and Property Regulation Act 1995 (PAPRA).
The proposed policy, a draft of which has already been prepared, has laid down procedure, terms and conditions for surrender of licences.
While PAPRA allows for the exit of a promoter from a project, there is no set down procedure for the same and the new policy will address this issue.
Leaving a licensed project incomplete is an offence under the Act. Only colonies wherein promoters have not sold, allotted or leased out the property or undertaken any development work, they will be allowed to surrender the licence.
They must also comply with the condition that no sale deed has been executed in the said colony. As per the draft policy, the promoters will have to seek irrevocable consent of the allottees or plot holders in cases where they have undertaken development works or sold, leased or allotted the property. Also, they will have to demolish constructions, if any, in the said colony. The promoters will have to give an undertaking that they will not sell any area by subdividing the colony in future.
REFUND OF CHARGES PAID
The charges deposited by the promoters on account of change of land use (CLU), licence fee and social infrastructure fund (SIF) will be not refunded. Only 25% of the total amount of external development charges (EDC) against the project excluding interest/penal interest will be forfeited in favour of the authorities.
In cases where less than 25% amount of EDC is paid, then the deposited amount will be forfeited. The balance EDC will be refunded without any interest to the promoters.
But, if EDC against any other project of the promoter is pending with the authorities, the balance EDC amount will not be refunded and will be adjusted from the date of order of withdrawal of license against due amount in his other project. However, if no EDC is due from other projects it will be refunded without any interest.
PROMOTERS’ LIABILITY
In cases where the licence already stands expired, the promoters will be liable to deposit a sum equal to licence renewal fee from the date of expiry of licence till the date of surrender along with equal amount of penalty.
There will be no government liability in cases where the promoters availed bank loan on the basis of licence, and they will be solely responsible for legal claims and complications in such cases.