True dis­clo­sure, a pro­vi­sion un­der UP Apart­ment Act 2010, can pre­vent prop­erty frauds but au­thor­i­ties are yet to en­force it

HT Estates - - FRONT PAGE - Jee­van Prakash Sharma

When In­dr­ish Gupta, c o- f ounder of Noida Ex­ten­sion Flat Own­ers As­so­ci­a­tion, sent a sim­ple query to the Noida Author­ity un­der the Right to In­for­ma­tion (RTI) Act, ask­ing if the author­ity had re­ceived true dis­clo­sure forms from the de­vel­op­ers active in Noida, he was told that the apex body did not have any in­for­ma­tion re­gard­ing such a dis­clo­sure or dec­la­ra­tion.

This only goes to show that de­spite t he Ut­tar Pradesh Apart­ment ( Pro­mo­tion of Con­struc­tion, Own­er­ship and Main­te­nance) Act 2010 be­ing in place for over four years in the state, the Noida Author­ity has failed to en­force many of its cru­cial pro­vi­sions, one of them be­ing the full and true dis­clo­sure for m, an im­por­tant doc­u­ment that can pre­vent many prop­erty dis­putes be­tween builders and buy­ers at the ini­tial stage it­self.

Sec­tion 4 (1) of the Act makes it clear that any de­vel­oper who in­tends sell­ing an apart­ment has to make a full and true dis­clo­sure in writ­ing to the in­tend­ing pur­chaser and the com­pe­tent author­ity re­gard­ing his rights, ti­tle of the land where the project is lo­cated, all en­cum­brances, plans and spec­i­fi­ca­tions, de­tails of all struc­tural, ar­chi­tec­tural draw­ings, layout plans and no ob­jec­tion cer­tifi­cates from all con­cerned au­thor­i­ties etc.

Ac­cord­ing to le­gal ex­perts, true dis­clo­sure is one pro­vi­sion that can nip all real es­tate dis­putes in the bud. Ac­cord­ing to the Act, when a de­vel­oper gets all ap­provals along with the layout plan, the first and fore­most thing he has to do is to give a full and true dis­clo­sure to both the com­pe­tent author­ity and each and every in­tend­ing pur­chaser.

“There have been many cases wherein de­vel­op­ers have sold flats on plots of land that they never owned. In one case, one of the mul­ti­ple claimants of a plot, which was un­der lit­i­ga­tion, went ahead and launched a group hous­ing project on the dis­puted plot with­out in­form­ing home­buy­ers. If the de­vel­op­ment au­thor­i­ties in UP im­ple­ment the

pro­vi­sion of true dis­clo­sure, it be­comes manda­tory for all the de­vel­op­ers to come clean on the ti­tle and en­cum­brances of the land. It will save home­buy­ers from prop­erty fraud,” says Prashant Ku­mar, an ad­vo­cate in Al­la­habad High Court, who has been fight­ing cases re­lat­ing to the UP Apart­ment Act.

There have been in­stances wherein de­vel­op­ers have promised green and open spa­ces as part of com­mon ar­eas to home­buy­ers of a group hous­ing project but later got the layout plan amended from the

author­ity keep­ing home­buy­ers in the dark.

“If de­vel­op­ers give full and true dis­clo­sure to au­thor­i­ties as well as home­buy­ers, it will be­come dif­fi­cult for them to de­vi­ate from the orig­i­nal plan. In Ghazi­abad, many de­vel­op­ers have con­structed hun­dreds of il­le­gal flats in group hous­ing projects in vi­o­la­tion of the orig­i­nal plan. Home­buy­ers are shocked af­ter be­ing told that they have been liv­ing in an il­le­gal flat for sev­eral years,” says Charmswood Vil­lage Na­harpar

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