Reg­is­tra­tion re­vo­ca­tion and pos­ses­sion dead­lines

Hindustan Times (Chandigarh) - Estates - - FRONT PAGE - Mu­niesh­wer A Sa­gar n mu­niesh­wer.sa­gar@hin­dus­tan­times.com

CHANDIGARH: No builder can ad­ver­tise, sell or mar­ket a realty pro­ject with­out first reg­is­ter­ing with the state real es­tate reg­u­la­tory au­thor­ity.

Un­der the Sec­tion 3 of the Real Es­tate (Reg­u­la­tory and De­vel­op­ment) Act, the builder must regis­ter the pro­ject be­fore it gains the right to mar­ket its pro­ject. If it vi­o­lates these pro­vi­sions, it can be pun­ished with penalty or and im­pris­on­ment.

At the time of the reg­is­tra­tion of a pro­ject, the builder must sub­mi­tan af­fi­davit with the state Rera, dis­clos­ing the pos­ses­sion sched­ule and dead­line. Ac­cord­ing to the Sec­tion 4 of the Rera Act, the builder must sub­mit a dec­la­ra­tion sup­ported by an af­fi­davit, which has to be signed by him or any per­son au­tho­rised by it, stat­ing the time pe­riod within which he un­der takes to com­plete the pro­ject or phase thereof.

The Act and the state rules made there­un­der make it manda­tory on the builder to dis­close the sta­tus of all the projects he has un­der­taken and is cur­rently de­vel­op­ing for his reg­is­tra­tion to be al­lowed.

Un­der Sec­tion 4 of the Act, the builder must en­close doc­u­ments along with the reg­is­tra­tion giv­ing a brief de­tail of the pos­ses­sion de­tails of the projects launched by him, in the past five years, whether al­ready com­pleted or be­ing de­vel­oped, as the case may be, in­clud­ing the cur­rent sta­tus of the said projects, any de­lay in its com­ple­tion, de­tails of cases pend­ing, de­tails of type of land and pay­ments pend­ing.

MAK­ING POS­SES­SION DEAD­LINE REG­IS­TRA­TION EX­PIRY DATE

De­layed pos­ses­sion has been the sin­gle most im­por­tant cause of home buyer ha­rass­ment across the coun­try. Ir­re­spec­tive whether a builder is lo­cal or na­tional level, the fail­ure to de­liver pos­ses­sion on time has be­come en­demic in the sec­tor. This has im­pacted the buyer con­fi­dence in the hous­ing, and it is blamed as a ma­jor de­ter­mi­nant of the cur­rent slow­down in the mar­ket.

The Act and the rules made there­un­der aim to rec­tify the is­sue by lay­ing down pro­vi­sions that en­cour­age as well as make it manda­tory for the builder to stick to de­clared pos­ses­sion dead­lines.

Un­der the Sec­tion 5 of the Act, the reg­is­tra­tion granted is valid for a pe­riod de­clared by the builder for com­ple­tion of the pro­ject or phase thereof, as the case may be. The reg­is­tra­tion ex­pires with the ex­pi­ra­tion of the pos­ses­sion dead­line.

The state Rera can ex­tend the reg­is­tra­tion even af­ter ex­pi­ra­tion of the pos­ses­sion dead­line un­der cer­tain con­di­tions. Ac­cord­ing the Sec­tion 6 of the Act, the reg­is­tra­tion granted un­der sec­tion 5 may be ex­tended by the au­thor­ity on an ap­pli­ca­tion made by the pro­moter due to force ma­jeure, in such form and on pay­ment of such fee as maybe spec­i­fied by reg­u­la­tions made by the au­thor­ity. Such an ex­ten­sion can­not ex­ceed one year.

“The au­thor­ity may in rea­son­able cir­cum­stances, with­out de­fault on the part of the pro­moter, based on the facts of each case, and for rea­sons to be recorded in writ­ing, ex­tend the reg­is­tra­tion granted to a pro­ject for such time as it con­sid­ers nec­es­sary, which shall, in ag­gre­gate, not ex­ceed a pe­riod of one year,” stip­u­lates the Act.

“Force maj eu re” means a case of war, flood, drought, fire, cy­clone, earth­quake or any other calamity caused by na­ture af­fect­ing the reg­u­lar de­vel­op­ment of the real es­tate pro­ject.

Upon lapse of the reg­is­tra­tion or on re­vo­ca­tion of the reg­is­tra­tion un­der the Act, the au­thor­ity, may con­sult the ap­pro­pri­ate gov­ern­ment to take such ac­tion as it may deem fit in­clud­ing the car­ry­ing out of the re­main­ing de­vel­op­ment works by com­pe­tent au­thor­ity or by the as­so­ci­a­tion of al­lot­tees or in any other man­ner, as may be de­ter­mined by the au­thor­ity. The as­so­ci­a­tion of al­lot­tees shall have the first right of re­fusal for car­ry­ing out of the re­main­ing de­vel­op­ment works.

The builder must pay all out­go­ings un­til he trans­fers the phys­i­cal pos­ses­sion of the real es­tate pro­ject to the al­lot­tee or the as­so­ci­a­tions of al­lot­tees, as the case may be, which he has col­lected from the al­lot­tees, for the pay­ment of out­go­ings (in­clud­ing land cost, ground rent, mu­nic­i­pal or other lo­cal taxes, charges for wa­ter or elec­tric­ity, main­te­nance charges, in­clud­ing mort­gage loan and in­ter­est on mort­gages or other en­cum­brances and such other li­a­bil­i­ties payable to com­pe­tent au­thor­i­ties, banks and fi­nan­cial in­sti­tu­tions, which are re­lated to the pro­ject), stip­u­lates Sec­tion 11 of the Act.

In case, he fails to pay all or any of the out­go­ings col­lected by him from the al­lot­tees or any li­a­bil­ity, mort­gage loan and in­ter­est thereon be­fore trans­fer­ring the real es­tate pro­ject to such al­lot­tees, or the as­so­ci­a­tion of the al­lot­tees, as the case may be, the pro­moter shall con­tinue to be li­able, even af­ter the trans­fer of the prop­erty, to pay such out­go­ings and pe­nal charges, if any, to the au­thor­ity or per­son to whom they are payable and be li­able for the cost of any le­gal pro­ceed­ings which may be taken there­for by such au­thor­ity or per­son

The Act makes it manda­tory for the builder to dis­close the sta­tus of all projects it has un­der­taken and is cur­rently de­vel­op­ing for the reg­is­tra­tion process.

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