Reg­u­larised colonies un­der Rera Act

Hindustan Times (Chandigarh) - Estates - - ESTATES - Mu­niesh­wer A Sa­gar mu­niesh­­gar@hin­dus­tan­

While Punjab gov­ern­ment re­works the pol­icy on reg­u­lar­i­sa­tion of unau­tho­rised colonies in the wake of tepid re­sponse from the colonis­ers to the pol­icy no­ti­fied on April 20 this year, the role and re­spon­si­bil­ity of a coloniser/de­vel­oper of a reg­u­larised colony needs to be clar­i­fied in the re­vised pol­icy

The Real Es­tate (Reg­u­la­tion and De­vel­op­ment) Act 2016 and the Punjab Real Es­tate Rules 2017 made therein have started to make dif­fer­ence in bring­ing greater trans­parency in the state’s real es­tate sec­tor. The state real es­tate reg­u­la­tory au­thor­ity has been since last year reg­is­ter­ing builders, projects and dis­pens­ing jus­tice to home buy­ers. Though sev­eral as­pects of the act are still to deliver full ben­e­fits to the home buy­ers, yet the de­gree of builder ac­count­abil­ity to the home buyer has con­sid­er­ably in­creased in the past one year.

The pol­icy on reg­u­lar is at ion of the il­le­gal colonies no­ti­fied un­der the Punjab Laws( spe­cial pro­vi­sions for reg­u­lar isa ti ono fun au­tho­rised colonies) Act 2018 man­dates all il­le­gal colonies con­structed be­tween 1995 and March 2018 to ap­ply for reg­u­lar­i­sa­tion.


The Rera Act man­dates that all projects (new and on­go­ing) must regis­ter with the state real es­tate reg­u­la­tory au­thor­ity. The reg­is­tra­tion can­not be done with­out the said project get­ting req­ui­site ap­provals, sanc­tions and li­cences. For the pur­poses of the com­pul­sory reg­is­tra­tion, the act, un­der Sec­tion 4,stip­u­lates that at the time of reg­is­tra­tion the pro­moter of the project must sub­mit with the reg­is­tra­tion ap­pli­ca­tion an au­then­ti­cated copy of the ap­provals and com­mence­ment cer­tifi­cate from the com­pe­tent au­thor­ity, and where the project is pro­posed to be devel­oped in phases, an au­then­ti­cated copy of the ap­provals and com­mence­ment cer­tifi­cate from the com­pe­tent au­thor­ity for each of such phases.

It also ne­ces­si­tates the sub­mis­sion of the sanc­tioned plan, lay­out plan and spec­i­fi­ca­tions of the pro­posed project or the phase thereof, and the whole project as sanc­tioned by the com­pe­tent au­thor­ity at the time of sub­mis­sion of ap­pli­ca­tion reg­is­tra­tion. Fur­ther, the pro­moter has to add the plan of de­vel­op­ment works to be ex­e­cuted in the pro­posed project and the pro­posed fa­cil­i­ties to be pro­vided thereof.

The Punjab real es­tate( reg­u­la­tion and de­vel­op­ment) rules also seek in­for­ma­tion and doc­u­ments as spec­i­fied un­der Sec­tion 4 for reg­is­tra­tion of a project. In the man­dated ap­pli­ca­tion form the pro­moter has to fill in all the in­for­ma­tion re­quired un­der Sec­tion 4 of the act, in­clud­ing the ap­provals, com­mence­ment cer­tifi­cate and lay­out plans.

There are more than 8,000 il­le­gal colonies in Punjab, as per the of­fi­cial fig­ures. The il­le­gal colonies are so be­cause th­ese do not have the req­ui­site ap­proval sand sanc­tions from the com­pe­tent au­thor­ity. So, it is not pos­si­ble for th­ese to be reg­is­tered with the state real es­tate reg­u­la­tory au­thor­i­ties. So, buy­ers in th­ese colonies are help­less to seek jus­tice against a de­fault­ing pro­moter.

In this con­text, the judge­ment of the Punjab R era re­strict­ing the sub­mis­sion of buyer com­plaints only to projects reg­is­tered with it be­comes all the­more im­por­tant. It clearly ex­cludes the il­le­gal colonies as th­ese can not be reg­is­tered with the au­thor­ity. For the buyer, the bad news does not end here, as th­ese il­le­gal colonies can not have li­cences or ap­provals un­less there is a reg­u­lar­i­sa­tion or amnesty pol­icy in place. In Punjab, a new reg­u­lar is at ion pol­icy is awaited.


The cur­rent pol­icy for the com­pound­ing of unau­tho­rised colonies and reg­u­lar­i­sa­tion of plots/ build­ings fall­ing un­der theun au­tho­rised colonies no­ti­fied in April 2018, un­der clause 15 stip­u­lates, “The colonies which will be reg­u­larised un­der this pol­icy shall have to get them reg­is­tered un­der Rera Act with the real es­tate reg­u­la­tory au­thor­ity within three months ”. So, the pol­icy pro­vid­ing re­lief to the allot tee sin th­ese colonies em pow­ers them to ap­proach the state Rera against the builders.


Un­der the Rera Act and the state rules made there­un­der, the de­vel­oper is re­spon­si­ble and ac­count­able for in­ter­nal de­vel­op­ment works and pro­vid­ing ba­sic ameni­ties to the home buyer.

The de­vel­oper is bound to men­tion all th­ese works in the sale agree­ment it­self, which has to be reg­is­tered with the com­pe­tent au­thor­ity. Also, the builder must com­plete th­ese in­ter­nal works be­fore the pos­ses­sion de­liv­ery dead­line as men­tioned in the sale agree­ment. If it fails to do so, he is li­able for pun­ish­ment as per the act.

The de­vel­oper is also ac­count­able for the qual­ity of in­fra­struc­ture and ameni­ties pro­vided in a project. But, here is the am­bi­gu­ity crops re­gard­ing the li­a­bil­ity of a colon is er or de­vel­oper of a reg­u­larised colony as per the cur­rent pol­icy on reg­u­lar­i­sa­tion of unau­tho­rised colonies.

The reg­u­lar­i­sa­tion pol­icy en­trusts the gov­ern­ment agen­cies or the mu­nic­i­pal­i­ties to pro­vide ba­sic in­fra­struc­ture and ameni­ties within th­ese reg­u­larised colonies and not the de­vel­oper or the coloniser.

Un­der clause 17 of the reg­u­lar­i­sa­tion pol­icy, in case where min­i­mum of 50% of plot hold­ers have de­posited the de­vel­op­ment charges and reg­u­lar is at ion fee, it is the re­spon­si­bil­ity of ei­ther the spe­cial de­vel­op­ment au­thor­ity (like GMADA) or the mu­nic­i­pal­ity or the lo­cal gov­ern­ment depart­ment of­fi­cial con­cerned to “pro­vide ba­sic in­fra­struc­ture such as wa­ter sup­ply, sewage and paved streets to the res­i­dents of the col- ony, out of the funds col­lected from reg­u­lar­i­sa­tion of colonies/ plots/ build­ings fall­ing un­der that colony”. “Though the reg­u­lar­i­sa­tion pol­icy man­dates that the coloniser of a reg­u­larised colony regis­ter with the state Rera, for all prac­ti­cal pur­poses it ab­solves the coloniser of all his re­spon­si­bil­i­ties un­der the Rera Act by en­trust­ing the gov­ern­ment agency con­cerned to pro­vide in­fra­struc­ture and ba­sic ameni­ties in such a colony ,” says MS Au­jla, for­mer di­rec­tor, town plan­ning, Punjab lo­cal gov­ern­ment depart­ment.

On the part of the colonis­ers, the de­mand is to ex­empt all such colonies from the purview of the Rera Act ex­cept those con­structed af­ter 2017 when the full act came into force. “We have de­manded again and again that the act should not be ap­plied to reg­u­lar is ed colonies ret­ro­spec­tive ly. Only those colonies which have come up af­ter the Rera Act came into force should come un­der the ju­ris­dic­tion of the state Rera au­thor­ity. Bring­ing older colonies un­der the Rera’s purview is im­prac­ti­cal and will serve no pur­pose,” says Kul­tar Singh Jogi, pres­i­dent, Punjab Colonis­ers and Prop­erty Deal­ers.

Un­der the Rera Act and the state rules made there­un­der, the de­vel­oper is re­spon­si­ble and ac­count­able for in­ter­nal de­vel­op­ment works and pro­vid­ing ba­sic ameni­ties to the home buyer. HT FILE PHOTO

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