PUDA - Punjab Apartment and Property Regulation Act, 1995

PUDA - Punjab Apartment and Property Regulation Act, 1995

CHAPTER I

Preliminary


1. (1) This Act may be called the Punjab Apartment and Property Regulation Act, 1995.
(2) It shall extend to the whole of the State of Punjab.
(3) This Act shall come into force on such date as the State Government may be notification in the Official Gazette, appoint and different dates may be appointed for different areas of the State.

2. In this Act, unless the context otherwise requires,-
(a) “advertisement” means any board, device, letter, model, notice, placard, sign, word, or representation in any manner whatsoever, wholly or in part, intended for being announced or displayed so as to make it generally known;
(b) “allottee” in relation to an apartment or plot, means the persons to whom such apartment or plot has been allotted, sold or otherwise generally known;
(c) “apartment” whether called block, chamber, dwelling unit, flat, lot, premises, suite, tenement, unit by any other name, means a separate and self-contained part of any property, including one or more rooms or enclosed spaces, located on one or more floors, or, any part or parts thereof, in a building, or in a plot of land, used or intended to be used for residence, office, shop, showroom, or godown 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 with a direct exit to a public street, road or highway or to a common area leading to such street road or highway, and includes any garage or room whether or not adjacent to the building in which such apartment is located, provided by the promoter for the use by the allottee for parking any vehicle or, as the case may be, for the residence of any domestic servant employed in such apartment;
Explanation.- (1) If a basement, cellar, garage, room, shop or storage space is sold separately from any apartment, it shall be treated as an independent apartment and not as part of any other apartment or of the common areas and facilities;
(d) “apartment number” means the number, letter or combination thereof, designating an
apartment;
(e) “apartment owner” means the person owning an apartment and an undivided interest in the common areas and facilities appurtenant to such apartment in the percentage specified in the conveyance deed of apartment.
Explanation.- A member of co-operative housing society of the tenant co-partnership type, or an allottee under a hire-purchase agreement, will be deemed to be an owner entitled to membership of the association;
(f) “association” means an association consisting all the apartment owners in a building acting as a group in accordance with the bye laws made by the association under the Punjab Apartment Ownership Act, 1955.
(g) “building” means a building constructed on any land, containing eleven or more apartments, or two or more buildings with a total of eleven or more apartments, or any exiting building converted into eleven or more apartments;
(h) “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 buildings or parts thereof and for the purpose of this Act includes Zoning Regulations framed under any law for the time being in force;
(i) “colony” means an area of land not les than one thousand square metres divided or proposed to be divided into plots for residential, commercial or industrial purpose, but does not include any area of abadi deh of a village falling inside its Lal Lakir or phirny or any area of land divided of proposed to be divided-
(i) for the purpose of agriculture; or
(ii) as a result of family partition, inheritance, succession or partition of joint holdings not with the motive of earning profit; or
(iii) by the owner of a factory for setting up a housing colony for the labourers or the employees working in the factory; Provided that there is no profit motive:
Explanation,- The term “agriculture” used in clause (i) shall include horticulture, dairy
farming and poultry farming;
(j) “common areas and facilities”, in relation to a building, means all parts of the building or the land on which it is located and all easements, rights and appurtenances belonging to the land or the building, which are neither in the exclusive possession of an apartment owner in terms of his conveyance deed of apartment, not are handed over or intended to be handed over to the local authority or other public service agency and shall include the limited common areas and facilities;
(k) “common expenses” means-
(i) all sums lawfully assessed against the apartment owners by the association for meeting the expenses of administration, maintenance, repair or replacement of the common areas and facilities;
(ii) expenses, declared by the provisions by this Act or by the bye-laws made by the association under the Punjab Apartment Ownership Act, 1995, or agreed upon by the association, as common expensed;
(iii) the Government and municipal taxes, including ground rent and property tax,
which is not assessed separately for each apartment;
(l) “competent authority” means any person or authority appointed by the State
Government, by notification in the Official Gazette, to exercise and perform all or any
of the powers and functions of the competent authority under this Act and the rules
made thereunder;
(m) “development charges” means the cost of external development works and internal
development works;
(n) “development works” means internal development works and external development
works;
(o) “estate agent” means a person who negotiates or acts on behalf of one person in a
transaction of transfer of his property, whether by way of sale, lease, licence,
mortgage or otherwise, with another person, and receives remuneration for his
services in the form of commission, and includes also a person who introduces to
each other for negotiation such person or their agents;
Explanation,- The person who acts as described in clause (o) shall be deemed to
be an estate agent, even if he styles himself as a land or housing agent, property or
real estate consultant, property dealer; realtor, or by any other name;
(p) “external development works” includes roads and road systems, water supply,
sewerage and drainage systems, electric supply or any other work which may have to
be executed in the periphery of, or outside, a colony for its benefit;
(q) “Government” or “State Government” means the Government of the State of Punjab;
(r) “Internal development works” means roads, foot-paths, water supply, sewers, drains,
tree, planting, street lighting, provision for community buildings and for treatment and
disposal of sewage and sullage water, or any other work in a colony necessary for its
proper development;
(s) “joint family” means a Hindu undivided family in the case of other person, a group the
members of which are by custom joint in possession or residence;
(t) “land” means a portion of the surface of the earth, comprising the ground or soil and
every thing under it or over, it, and things which are attached to the earth, such as
buildings, 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 benefit arising out of them, and includes the sites of villages, towns and
cities;
(u) “Limited common areas and facilities” means those common are asand facilities
which are designated in writing by the promoter before the allotment, sale or transfer
of any apartment, as reserved for use of certain apartments to the exclusion of the
other apartments;
(v) “local authority” means a corporation constituted under section 4 of the Punjab
Municipal Corporation Act, 1976 (Punjab Act No. 42 of 1976) or a committee
constituted under section 12 of the Punjab Municipal Act, 1911 (Punjab Act No. 3 of
1911) or any other authority notified by the State Government for the purposes of this
Act;
(w) “person” includes a company, firm, co-operative society, joint family and an
incorporated body of persons;
(x) “prescribed” means prescribed by rules made under this Act;
(y) “promoter’ means the person,-
(a) who constricts or causes to be constricted a building consisting of apartments, or,
converts an existing building or a part thereof into apartments, for the purpose of
selling all or some of the apartments to other person, and includes his assigns; or
(b) who develops land into a colony, whether or not be also constructs structures on any
of the plots, for the purpose of selling to other persons, all or some of the plots,
whether open or with structures thereon; and
(c) where the person who constructs or convert a building or develops a colony and the
person who sells apartments or plot are different persons, the term includes both of
them;
Explanation,-(1) Any development authority and any other public body so notified by
the State Government are deemed to be promoter in respect of allottees of,-
(i) buildings constructed by them on land owned by them or placed at their disposal by
the State Government; or
(ii) plots owned by them or placed at their disposal by the State Government;
Explanation,- (2) A person who acts as described in sub-clause (c) of clause (y)
shall be deemed to be a promoter, even if,-
(i) he styles himself as a builder, colonizer, contractor, developer, estate promoter or by
any other name; or
(ii) he claims to be acting as the holder of a power of attorney from the owner of the land
on which the building is constructed or colony is developed;
(z) “property” means the land, the building, all improvements and structures thereon, 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, franchises and hereditaments; and
(za) “section means a section of this Act.

CHAPTER II

Regulation of Promotion of Construction, Sale, Transfer and
Management of Apartments, Plots and Properties


3.(1) Notwithstanding anything in any other law for the time being in force, a promoter, who
develops a colony or who constructs or intends to construct a building of apartments,
shall, in all transactions with person taking or intending to take a plot or an apartment
on ownership basis, be liable to give or produce, or cause to be given or produced,
the information and the documents mentioned hereinafter in this section.
(2) A promoter who develops a colony or who constructs or intends to construct such
building of apartments shall,-
(a) make fill and true disclosure of the nature of hi title to the land on which such colony
is developed or such building is constructed, such title to the land having been duly
certified by an attorney-at-law or an advocate of not less than seven years standing,
after he has examined the transactions concerning it in the previous thirty years ; and
if the land is owned by another person, the consent of the owner of such land to the
development of the colony or construction of the building has been obtained;
(b) make full and true disclosure of all encumbrances on such land, including any right,
title, interest or claim of any party in or over such land;
(c) given inspection on seven days, notice or demand,-
(i) of the layout of the colony and plan of development works to be executed in a colony
as approved by the prescribed authority in the case of a colony; and
(ii) of the plan and specifications of the building built or to be built on the land as well as
of the common areas and facilities and common services provided (including supply
of electricity and water, sewerage and drainage systems, lifts , fire-fighting
equipment), such plans and specifications being in accordance with the provisions
of the building regulations, and approved by the authority which is required so to do
under any law for the time being in force, indicating thereon what parts of the building
and the appurtenant areas are intended to be kept as common areas and facilities in
the case of apartments :
Provided that the number and size of the apartments shall conform to such building
regulations, and the area of an apartment shall not exceed such limit as may be fixed
by the competent authority;
(d) display or keep all the documents, plans and specifications or copies thereof referred
to in clauses (a), (b) and (c) of this sub-section at the site and in his office and make
them available for inspection to persons taking or intending to take a plot or an
apartment and after the association is formed, he shall furnish the association a copy
of these documents and of the sanctioned plan of the building;
(e) disclose the nature of fixtures, fittings and amenities, including the provision for one
or more lifts, provided or to be provided;
(f) disclose on reasonable notice or demand, if the promoter is himself the builder, the
prescribed particulars as respects the design and the materials to be used in
construction, and, if the promoter is not himself the builder, disclose all agreements
entered into by him with the architects and contractors regarding the design,
materials and construction of the building;
(g) specify, in writing, the date by which possession of the plot or apartment is to be
handed over and he shall hand over such possession accordingly;
(h) except where there are no agreements about specific plots or apartments and
allotment is made by draw of lots, prepare and maintain a list of plots or apartments
with their numbers, the names and addresses of the parties who have taken or
agreed to take plots or apartments, the price charged or agreed to be charged
therefor, and the terms and conditions, if any, on which the plots or apartments are
taken or agreed to be taken;
Provided that the competent authority may direct that,-
(i) in the case of residential apartments, if the total number of apartments; and
(ii) in the case of colony, of the total area of the colony is forty hectares or more, ten per
cent of the area under residential plots and houses, be reserved for being sold or
leases to such person belonging to such economically weaker section of society, in
such manner and on such terms and conditions as may be prescribed;
(i) state in writing, the precise nature of and the terms and conditions governing the
association to be constituted of persons who have taken or are to take the
apartments;
(j) not allow person to enter into possession until an occupation certificate required
under any law is duly given by the appropriate authority under that law and no person
shall take possession of an apartment until such occupation certificate is obtained ;
(k) make a full and true disclosure of all outgoing, including ground rent, of any,
municipal or other local taxes, charges for water and electricity, revenue assessment,
interest on mortgages or other encumbrances, if any;
(l) give the estimated cost of the building and the apartments proposes to be
constructed, or colony to be developed, and the manner in which escalation in such
cost for valid reasons may be approved by mutual agreement ;
(m) make a full and true disclosure of such other information and documents in such
manner as may be prescribed; and
(n) give on demand and on payment of reasonable charges true copies of such of the
documents referred to in any of the clauses of this sub-section as may be prescribed.

4.(1) No promoter shall issue an advertisement or prospectus, offering for sale any
apartment or plot, or inviting persons who intend to take such apartments or plots to
make advances or deposits, unless,-
(a) the promoter holds a certificate of registration under sub-section (2) of section 21 and
it is in force and has not been suspended or revoked, and its number is mentioned in
the advertisement or prospectus; and
(b) a copy of the advertisement or prospectus is filed in the office of the competent
authority before its issue or publication.
(2) The advertisement or prospectus issued under sub-section (1) shall disclose the area
of the apartments or plots offered for sale, title to the land, extent and situation of
land, the price payable and in the case of colonies, also layout of the colony, the plan
regarding the development works to be executed in a colony and the number and the
validity of the licence issued by the competent authority under sub-section (3) of
section 5, and such other matters as may be prescribed.
(3) The advertisement or prospectus shall be available for inspection at the office of the
promoter and at the site where the building is being constructed or on the land being
developed into a colony, alongwith the documents specified in this section and in
section 3.
(4) When any person makes an advance or deposits on the faith of the advertisement or
prospectus, and sustains any loss or damage by reason of any untrue statement
included therein, he shall be compensated by,-
(a) the promoter, if an individual;
(b) every partner of the firm, if the promoter is a firm;
(c) every person who is a director at the time of issue of the advertisement or
prospectus, if the promoter is a company :
Provided, however, that such person shall not be liable if he proves that,-
(a) he withdraw his consent to become a director before the issue of the advertisement
or prospectus; or
(b) the advertisement or prospectus was issued without his knowledge or consent, and
on becoming aware of its issue, he forthwith gave reasonable public notice that it was
issued without his knowledge or consent; or
(c) after the issue of the advertisement or prospectus and before any agreement was
entered into with buyers of plots or apartments, he, on becoming aware of any untrue
statement therein, withdraw his consent and gave reasonable public notice of the
withdrawal and of the reasons therefore.
(5) When any advertisement or prospectus includes any untrue statement, every person
who authorised its issue, shall be punished with imprisonment for a term which may
extend upto one year or with fine which may extend upto five thousand rupees, or,
with both, unless he proves that the statement was immaterial or that he had reason
to believe and did upto the time of issue of the advertisement or prospectus believe
that the statement was true.

5.(1) Any promoter, who desires to develop a land into a colony, shall make an application
in the prescribed form alongwith the prescribed information and with the prescribed
fee to the competent authority for grant of permission for the same and separate
permission will be necessary for each colony.
(2) On receipt of the application under sub-section (1), the competent authority, after
making enquiry into the title to the land, extent and situation of the land, capacity of
the promoter to develop the colony, layout of the colony, conformity of the
development of the colony with the neighbouring areas, plan of development works to
be executed in the colony and such other matters as it may deem fit, and after
affording the applicant an opportunity of being heard and also taking into
consideration the opinion of the prescribed authority, shall pass an order, in writing,
recording reasons either granting or refusing to grant such permission.
(3) Where an orders is passed granting permission under sub-section (2), the competent
authority shall grant a licence in the prescribed form, after the promoter has furnished
a bank guarantee equal to twenty five percent of the estimated cost of the
development works certified by the competent authority and the promoter has
undertaken to enter into an agreement in the prescribed form for carrying out
completion of development works in accordance with the conditions of the licence so
granted.
(4) The licence granted under sub-section (3) shall be valid for a period of three years
and will be renewable from year to year on payment of prescribed fee.
(5) The promoter shall enter into agreement undertaking to pay proportionate
development charges for external development works to be carried out by the
Government or a local authority.
(6) The competent authority shall determine the proportion in which, and the time within
which, the estimated development charges referred to in sub-section (5) shall be paid
to the State Government, or the local authority, as the case may be.
(7) The promoter shall carry out and complete the development of the land in accordance
with the provisions of the Urban Land (Ceiling and Regulation) Act, 1976 (Central Act
33 of 1976) and other laws for the time being in force.
(8) The promote shall construct or get constructed at his own cost schools, hospitals,
community centres and other community buildings, on the land set apart for this
purpose or transfer such land to the State Government either free of cost or upon
payment of actual cost of developed land, as decided by the State Government,
which shall be at liberty to transfer such land to any local authority or any person or
institution on such terms and conditions as it may deem fit:
Provided that if, having regard to the amenities which exist or are proposed to be
provided in the locality, the competent authority is of the opinion that it is not
necessary to provide one or more of such amenities, it may exempt the promoter
from providing such amenities, either wholly or in part, on such terms and conditions
as it may deem fit.
(9) The promote shall, where the total area of the colony is forty hectares or more,
reserve upto ten per cent of the area under residential plots and apartments as the
competent authority may direct, for being sold or leased to such persons belonging to
such economically weaker sections of society, in such manner and on such terms
and conditions, as may be prescribed.
(10) The promoter shall carry out all directions issued by the competent authority for
ensuring due compliance of the execution of the layout and the development works
therein and to permit the competent authority or any officer authorised by it to inspect
such execution.
(11) The promoter shall be responsible for the maintenance and up keep of all roads,
open spaces, public parks and public health services until the date of transfer thereof,
free of cost of the State Government or the local authority.
(12) In the event of the promoter contravening any provisions of this Act, or rules made
thereunder or any conditions of the licence granted under sub-section (3) the
competent authority may, after giving an opportunity of being heard, cancel the
licence and enforce the bank guarantee furnished by the promoter under the said
sub-section(3).
(13) When a licence is cancelled under sub-section (11), the competent authority may
itself carry out or cause to be carried out the development works, and after adjusting
the amount received as a result of enforcement of bank guarantee, recover such
charges as the competent authority may have to incur in the said development works
from the promoter and the allottees in the manner prescribed as arrear of land
revenue.
(14) The liability of the promoter for payment of development charges referred to in-sub
section (13) shall not exceed the amount the prompter has actually recovered from
the allottees less the amount actually spent on such development works, and that of
the allottees shall not exceed the amount which they would have to pay to the
promoter towards the expenses of the said development works under the terms of the
agreement of sale or transfer entered into between them:
Provided that the competent authority may, recover from the allottees with their
consent, an amount in excess of what may be admissible under the aforesaid terms
of agreement of sale or transfer.
(15) Notwithstanding anything contained in this Act, after development works have been
carried out under sub-section (13), the competent authority may, with a view to
enabling the promoter, to transfer the possession of, and the title to, the land to the
allottees within a specified time, authorise the promoter by an order to receive the
balance amount, if any, due from the allottees after adjustment of the amount which
may have been recovered by the competent authority towards the cost of the
development works and also transfer the possession of, and the title to, the land to
the allottees within aforesaid time and if the promoter fails to do so, the competent
authority shall on behalf of the promoter fails to do so, the competent authority shall
on behalf of the promoter transfer the possession of, and the title to, the land to the
allottees on receipt of the amount which was due from them.
(16) After meeting the expenses on development works under sub-section (13), the
balance amount shall be payable to the promoter.

6.(1) Notwithstanding anything contained in any other law for the time being in force, a
promoter who intends to construct or constructs a building of apartments, all or some
of which are to be taken or are taken on ownership basis, or who intends to offer for
sale plots in a colony, shall, before he accepts any sum of money as advance
payment or deposit, which shall not be more than twenty five per cent of the sale
price, enter into a written agreement for sale with each of such persons who are to
take or have taken such apartments, or plots, as the case may be, and the agreement
shall be in the prescribed for together with prescribed documents and shall be
registered under the Registration Act, 1908 (Central Act no. 16 of 1908) ;
Provided that, if only a refundable application fee is collected from the applicant
before draw of lots for allotment, such agreement will be required only after such
draw of lots.
(2) The promoter shall not cancel unilaterally the agreement of sale entered into under
sub-section (1) and of he has sufficient cause to cancel it, he shall give due notice to
the other parties to the agreement and tender a refund of the full amount collected
togetherwith interest at the rate as may be prescribed.
(3) The agreement to be prescribed under sub-section (1) shall contain inter alia the
particulars as hereunder specified in clause (a) in respect of apartments and as
specified in clause (b) in respect of plots in a colony and to such agreement shall be
attached the copies of the documents specified in clause (c),-
(a) the particulars in the case of apartment,-
(i) if the building is to be constructed, the liability of the promoter to construct the
building according to the plans and specifications approved by the authority which is
required so to do under any law for the time being in force;
(ii) the date by which the possession of the apartment is to be handed over to the
allottee;
(iii) the area of the apartment including the area of the balconies which should be shown
separately:
(iv) the price of the apartment including the proportionate price of the common areas and
facilities which should be shown separately, to be paid by the allotteee of the
apartment and the intervals at which the instalments thereof may be paid;
(v) the precise nature of the association to be constituted of the persons who have taken
the apartments;
(vi) the nature, extent and description of the common areas and facilities and the limited
common areas and facilities, if any;
(vii) the percentage of undivided interest in the common areas and facilities and in the
limited common areas and facilities, if any, appertaining to the apartment agreed 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 apartments;
(viii) the statement of the use for which the apartment is intended and restrictions on its
use, if any;
(b) particulars in the case of plots in a colony,-
(i) the date by which the possession of the plot is to be handed over to allottee;
(ii) the area and price of the plot ; and
(iii) the statement of the use for which the plot is intended and restriction on its use, if
any;
(c) the copies of documents to be attached with the agreement,-
(i) the certificate by an attorney-at-law or advocate referred to in clause (a) of subsection(
2) of section3;
(ii) certified copy from any relevant revenue record showing the nature of the title of the
promoter to the plot or land on which the building of apartments is constructed or is to
be constructed ; and
(iii) the plans and specifications of the apartment as approved by the authority which is
required so to so under any law for the time being in force.

7.(1) Any agreement for sale entered into under sub- section (1) of section 6 shall be
presented for registration under the Registration Act,1908,(Central Act No.16 of
1908), by the promoter or by any other person competent to do so at the proper
registration office and execution thereof shall be admitted by the person executing the
document or his representative, assign or agent.
(2) Where any agreement for sale is entered into or is put-ported to be entered into at
any time before the commencement of this Act, such document may be admitted by
any of the persons concerned within six months of the commencement of this Act,
and the registering officer shall accept document for registration and register it as if it
was presented and its execution admitted within time.
(3) On presenting a document for registration under sub-section (2), if the person
executing such document or his representative, assign or agent does not appear
before the registering officer and admit the execution of the document, the registering
officer shall cause summons to be issued requiring the executant to appear at the
registration office either in person or by duly authorised agent on a date fixed in the
summons and if the executants fails to appear in compliance with the summons so
issued, the execution of the document shall be deemed to be admitted by him and the
registering officer may proceed to register the document accordingly and of the
executant appears before the registering officer but denies execution of the
document, the registering officer shall after giving him a reasonable opportunity of
being heard, if satisfied that the document accordingly.

8. Where any agreement for sale entered into under sub-section (1) of section 6,
whether entered into before or after the commencement of this Act, remains
unregistered for any reason, then notwithstanding any thing contained in any law for
the time being in force, or in any judgement, decree or order of any court, it may be
received as evidence of a contract in a suit for specific performance under Chapter II
of the Specific Relief Act,1963, (Central Act No.47 of 1963), or as evidence, of part
performance of a contract for the purposes of section 53A of the Transfer pf Property
Act,1882, (Central Act No. iv of 1882), or as evidence of any collateral transaction not
required to be effected by registered instrument.

9. The promoter shall maintain a separate account in any scheduled banks of sums
taken by him from persons intending to taken or who have taken apartments or plots,
as advance, towards sale price of for any other purpose, or ,deposit, including any
sum so taken towards the share capital for the formation of a co-operative 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 of sale and the conveyance ; and the promoter shall hold the said moneys
for the purposes for which they were given and shall disburse the moneys for those
purposes including for the construction of apartments and, in the case of colonies, for
meeting the cost of development works, and shall on demand, in writing, by the
competent authority make full and true disclosure of all transactions in respect of that
account and shall not utilise for any other purpose the amounts so collected for a
particular purpose.

10. A promoter shall, while he is in possession, and, where he collects from persons who
have taken or are to take apartments or plots, sums for the payments of outgoings,
even thereafter, pay all outgoings (including ground rent, municipal or other local
taxes, charges for water or electricity, revenue assessment, interest on mortgages or
other encumbrances, if any until he transfers the property to the persons taking over
the apartments or plots, where any promoter fails to pay all or any of the outgoings
collected by him from the persons who have taken over or are to take over
apartments or plots, before transferring the property to the persons taking over the
apartments or plots, the promoter shall continue to 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 responsible for any legal proceedings which
may be taken therefore by such authority or person.

11.(1) After the plans and specifications of the building as approved by the authority which is
required so to do under any law are disclosed or furnished to the person who agrees
to take an apartment, the promoter shall;
(i) not make any alterations in the structures described therein in respect of such
apartment, without the previous consent of that person; or
(ii) not make any other alterations in, or additions to the structure of the building or
construct any additional structures, without the previous consent of all the persons
who have agreed to take apartments in such building.
(2) Subject to the provisions of sub-section (1), the building shall be constructed and
completed in accordance with the plans and specifications aforesaid ; and if any
defect in the building or material used, or if any unauthorised change in the
construction is brought to the notice of the promoter within a period of two years from
the date of handing over possession, it shall wherever possible be rectified by the
promoter without further charge to the persons who have agreed to take the
apartments, and in other cases such persons shall be entitled to receive reasonable
compensation for such defects or change and where there is a dispute as regards
any defect in the building or material used or any unauthorised change in the
construction, or as to whether it is reasonably possible for the promoter to rectify any
such defect or change, or as regards the amount of reasonable compensation
payable in respect of any such defect or change which cannot be or is not rectified by
the promoter, the matter shall, on payment of such fee as may be prescribed and
within a period of three years from the date of handing over possession, be referred
for decision to the competent authority and the competent authority shall, after giving
an opportunity of being heard to the parties and after making further enquiry, if any,
as it may deem fit, record its decision and the decision so recorded shall be final.

12. If the promoter,-
(a) fails to give possession, in accordance with the terms of his agreement, of a plot or
an apartment duly completed by the date specified, or any further date agreed to by
the parties; or
(b) for reasons beyond his control and of his agents, is unable to give possession of the
plot or the apartment by the date specified, or further agreed date; the promoter shall
be liable on demand, bit without prejudice to any other remedies to which he may be
liable, to refund the amounts already received by him in respect of that plot or
apartments with simple interest at the rate as may be determined by the competent
authority from the date the promoter received the sums till the date the amounts and
interest thereon is refunded, and the amounts and the interest shall be a charge on
the land on which a plot is to developed, or a building is or was to be constructed and
the construction, if any, thereon shall be subject to any prior encumbrances.

13.(1) No promoter shall after he executes an agreement to sell any apartment plot,
mortgage or create a charge on such apartment or the land or the plot, without the
previous consent of the persons who takes or agrees to take such apartment or plot,
and if any such mortgage or charge is made or created without such previous
consent after the agreement referred to in section 6 is registered, it shall not affect the
right and interest of such person.
(2) If a promoter has executed an agreement of sale of an apartment or a plot with a
person and has not yet received from him all the amounts agreed to be paid, the
latter shall not mortgage or create a charge against such apartment or plot without
the previous consent of the promoter:
Provided that the promoter shall not withhold consent if the mortgage or charge is for
the purpose of obtaining finance for the payment of amounts due to the promoter.

14.(1) It is the responsibility of the promoter,-
(i) in the case of apartments, to obtain from the authority required to do so under any
law completion and occupation certificates for the building and if a promoter, within a
reasonable time, after the construction of the building, a reasonable time, after the
construction of the building, does not apply for an occupation certificate from the
aforesaid authority, the allottee of an apartment may apply for an occupation
certificate from the said authority; and
(ii) in the case of a colony, to obtain completion certificate from the competent authority
to the effect that the development works have been completed in all aspects as per
terms and conditions of the licence granted to him under section 5.
(2) The authority referred to in sub-section (1) shall, after satisfying itself about the
agreement of sale between the promoter and the allottee, and the compliance of the
building regulations and all other formalities, issue an occupation certificate.

15. After the occupation certificate is obtained under section 14, the promoter shall
submit a copy thereof to the competent authority and thereafter he shall take all
necessary steps to complete his title and convey the exclusive ownership of the
apartment containing such particulars as may be prescribed and the undivided
interest in the common areas and facilities appurtenant to such apartment to the
person in whose favour he has executed an agreement of sale of that apartment, and
execute a conveyance deed of apartment containing such particulars as may be
prescribed and all other relevant documents therefore in accordance with such
agreement, within three months from the date of giving possession of the apartment
and also deliver all documents of title relating to the property which may be in his
possession or power and the promoter shall not reserve any right in the property
expect to the extent of apartments which may be in his possession or power and the
promoter shall not reserve any right in the property expect to the extent of apartments
which he is taking up in his own name and apartments which he is taking up in his
own name and apartments which are meant for sale but are still unsold.

16. (1) If the promoter without sufficient cause fails to execute the conveyance deed of
apartment and other relevant documents within three months in terms of the
provisions of section 15, the person in possession of the apartment in pursuance of
the agreement of sale may make an application, in writing, in the prescribed form to
the competent authority for a certificate to be produced before the concerned
registering officer for enforcing the registration of the transfer and on receipt of such
application and after making such enquiry as may be necessary and satisfying itself
that occupation certificate has been obtained from the authority required to do so
under any law and the person in possession has done what he was required to do
under the agreement of sale, the competent authority shall issue an occupation
certificate to the registering officer that it is a fit case for enforcing registration of the
conveyance deed and direct the person who has taken the apartment to present the
conveyance deed of apartment though not executed by the promoter for unilateral
execution of registration.
(2) After the conveyance deed of apartment alongwith the occupation certificate issued
by the competent authority under sub-section (1) is presented for registration, the
registering officer shall cause a summons to be issued to the promoter and if the
promoter fails to appear in compliance with the summons so issued, the execution of
the instrument shall be deemed to be admitted by him and the registering officer shall
proceed to register the instrument and if the promoter appears but denies execution
of the conveyance deed, the registering officer, after giving him a reasonable
opportunity of being heard, if satisfied that the promoter has failed to execute the
conveyance deed without sufficient cause, shall proceed to register the same.
(3) If the promoter fails to execute a written agreement of sale as required by section 6,
or fails to execute the conveyance deed of apartment and other relevant documents
as specified in sub-section (1), within three months, the competent authority may,
either on complaint or suo moto, impose for each plot or apartment for which there is
default, a penalty up to a maximum of five thousand rupees, whichever is greater,
and further minimum penalty for each plot or apartment of one hundred 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 in sub-section (3) shall be in addition to any action taken under
the Indian Stamp Act, 1899 (central Act No.2 of 1899) or the Registration Act, 1908
(Central Act, 1908),and if a penalty is imposed under the provisions of any of these
Acts, the promoter shall not be liable to penalty for the same offence under this Act or
under any other law governing the apartment ownership.

17. (1) No promoter and no person who is responsible for the management and maintenance
of a building of apartments, shall without just and sufficient cause, either by himself or
through any person, cut off, withhold, curtail or reduce, any essential supply or
service enjoyed in respect of such apartment by the person who has taken or agreed
to take an apartment or by any person in occupation thereof or under him.
(2) If there is contravention of the provisions of sub-section (1), the person who has
taken or agreed to take the apartment or the occupier thereof may make an
application to competent authority for a direction to restore such supply or service.
(3) If the competent authority on enquiry finds that the person referred to in sub-section
(2) has been in enjoyment of the essential supply or service and that it was cut off or
withheld or curtailed or reduced without just and sufficient cause, the competent
authority shall make an order directing the restoration of such supply or service
before a date to specified in the order.
(4) If the competent authority on enquiry finds that the person referred to in sub-section
(2) has been in enjoyment of the essential supply or service and that it was cut off or
withheld or curtailed or reduced without just and sufficient cause, the competent
authority shall make and order directing the restoration of such supply or service
before a date to be specified in the order.
(5) Notwithstanding anything contained in any law for the time being in force, the
competent authority shall have jurisdiction to decide any application made under subsection
(2), and no other court shall have jurisdiction to entertain such application and
no appeal shall lie from any order made on such application:
Provided that the State Government may for the purpose of satisfying itself
that the order made was according to law, call for the case in which such an order
was made and may pass such order with respect thereto as it thinks fit.
(6) Any promoter or person responsible for the management and maintenance of building
or apartment, who contravenes the provisions of sub-section (1), shall on conviction,
be punished with imprisonment for a term which may extend to three months, or with
fine, which may extend to five thousand rupees, or, with both.
(7) The offence under sub-section (6) shall be cognizable, and shall not triable by any
court inferior to that of Judicial Magistrate of the First Class.
Explanation,-(1) In this section,” essential supply or service” includes the supply of
water, electricity, lights in passages and on staircase, and lifts and conservancy or
sanitary service.
Explanation,-(2) For the purposes of this section withholding any essential supply or
service shall include acts or omissions attributable to the promoter or the person
responsible for the management and maintenance of the building or apartment, on
account of which the essential supply of service is cut off by the local authority or any
other authority.

18. (1) A promoter who enters into a transaction for the transfer relating to a property shall,-
(a) make full and true disclosure of the nature of his title to the property indicating clearly
that his title to property has been duly certified by an attorney-at-law or an advocate
of not less than seven years’ standing, after he has examined transactions
concerning it in the previous thirty years;
(b) make full and true disclosure of all encumbrances on such property, including any
right, title, interest or claim of any party in or over such property;
(c) in case the property is land held on lease, produce consent from the lessor for the
transaction;
(d) in case the property is land subject to the provisions of the Urban Land (Ceiling and
Regulation) Act,1976 (Central Act No.33 of 1976), produce clearance from the
competent authority under that Act;
(e) make full and the disclosure of any reservations, in the development plan framed
under any law for the time being in force or restrictions on the use to which the
property may be put and any development works;
(f) specify in writing the date by which possession of the property is to be handed over;
(g) make full and true disclosure of all outgoings, including groundrent, if any, municipal
or other local taxes, revenue assessment, interest on any mortgage or other
encumbrance, development charges for maintenance and upkeep of roads, drainage,
sewerage, water supply, electricity, laid out and constructed by the Government or
any local authority.
(2) No person shall issue a prospectus or advertisement offering for sale any property,
unless the prospectus or advertisement indicates the place and time the documents
and certificates relating to the matters specified in sub-section (1) are available for
inspection.
(3) The provisions of sub-section (4) and (5) of section 4 shall apply mutatis mutandis for
mis-statements in the prospectus or advertisement issued under sub-section (2) of
this section.
(4) The provisions of sections 13, 15 and 16 shall apply mutatis mutandis to a transaction
of property made under this section.

19. (1) Every allottee who has executed an agreement of sale to take an apartment or a plot
under section 6 or any property under section 18 shall pay at the proper time and
place, the price, the portionate share of the municipal taxes, water and electricity
charges, ground rent, if any, and other charges in accordance with the agreement of
sale.
(2) Any person who has executed an agreement of sale of an apartment or plot or other
property and who, without reasonable excuse, fails to comply with or contravenes the
provisions of sub-section (1) shall on conviction, be punished with fine which may
extend to one per cent of the price of the apartment or plot or property, as the case
may be, or one thousand rupees, whichever is greater.

20. Every person, erecting or re-erecting any structure in a colony in respect whereof a
licence has been obtained under sub-section (3) of section 5, shall comply with such
conditions regarding use of land, layout plan, zoning regulations, site coverage,
height of building, set back lines, structural and sanitary requirements, architectural
control, design of buildings and material to used in erection thereof as may be
prescribed.

CHAPTER III

REGISTRATION OF PROMOTERS AND ESTATE AGENTS


21.(1) From such date as may be fixed by the State Government, by notification in the
Official Gazette in this behalf, no person shall carry on the business of promoter or
estate agent, or represent or hold himself 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 a promoter, or as an estate
agent, as the case may be, shall be made along with a prescribed fee in the
prescribed form to the competent authority, and the competent authority on receipt of
the application may enter the name of the applicant in the register of promoters, or ,
in the register of estate agents 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 his 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.

22. Before registering and granting a certificate of registration to a promoter or, an estate
agent under the provisions of Section 21, the competent authority shall satisfy itself,-
(a) in the case if the application is for registration as a promoter, that the promoter
himself or one of his employees, or one of the partners of the firm or one of the
directors of the company, as the case may be, possesses the prescribed
qualifications for conducting the business of a promoter;
(b) in the case if the application is for registration as an estate agent that the applicant
possesses qualifications as may be prescribed;
(c) that the applicant furnishes to the competent authority, either a bank guarantee or a
security, for such amount and in such manner as may be prescribed:
Provided that where the applicant is a statutory corporation, board or
authority established under nay law for the time being in force, no such security shall
be required;
(d) that the applicant produces an income-tax clearance certificate from the income tax
authorities;
(e) that the applicant has not been convicted of an offence under this Act or under any
law relating to construction or use of premises, or, if convicted, a period of five years
has elapsed after that conviction:
Provided that an authority created for development of land or housing under any law
for the time being in force, shall be exempted from these conditions, and shall be
granted a certificate of registration on application.

23. Every certificate or granted registration of a promoter or an estate agent under
section 21 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 competent authority, on an
application along with the prescribed fee, made by the promoter or the estate agent in
that behalf :
Provided that the conditions referred to in section 22 continue to be fulfilled and the
application has been made at least three months before the expiry of the certificate of
registration.

24. If, after giving the applicant an opportunity of being heard, the competent authority,
refuses to grant or renew a certificate of registration, it shall record its reasons
therefore in writing and communicate the same to the applicant.

25.(1) A certificate of registration granted under section 21 shall be liable to be cancelled by
the competent authority on the grounds mentioned in sub-section (2) and by an order
made in writing recording the reasons for such cancellation.
(2) A certificate of registration is liable to cancelled, if the promoter or estate agent, as
the case may be,-
(a) surrenders the certificate of registration as he does not wish to continue carrying on
the business ;
(b) has applied to be adjudicated or he has been adjudicated an insolvent or is an
un-discharged insolvent ;
(c) has been adjudicated to be of unsound mind by a competent court ;
(d) has been convicted of an offence under this Act or under any law relating to
construction or use of premises and a period of five years has not elapsed after that
conviction ;
(e) 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 thereunder.’

26.(1) Before cancelling a certificate of registration under section 25, the competent
authority shall give notice to the promoter, or the estate agent, as the case may be,
specifying the grounds and calling upon him to show-cause why the certificate or
registration should not be cancelled.
(2) After considering the explanation, if any, offered by the promoter, or, the estate agent,
as the case may be, the competent authority may cancel the certificate of registration,
or pass such orders as it my deem fit.
(3) Notwithstanding anything contained in sub-section (1) and (2), the competent
authority may suspend the certificate of registration of a promoter or an estate agent
as the case may b, pending decisions on the matter of cancellation of the certificate
of registration.
(4) Where any certificate of registration is suspend or cancelled under this Act, no person
shall be entitled to any compensation or the refund of any fee paid in respect thereof.

27. When a certificate of registration is suspended or cancelled under the provisions of
section 26 or when it expires and is not renewed, under the provisions of section 23,
a promoter or estate agent, as the case may be, shall cease to carry on the business
and any business or activity in furtherance of his business during the period of
suspension or after the expiry or cancellation of the certificate of registration, shall be
deemed to be carried on without any certificate of registration for the purpose of
section 21 and shall be liable for all consequences thereof :
Provided that, when decision is pending on an application for renewal of
registration, no such presumption shall be made, if business is carried on after the
expiry of the period of registration of certificate.

28.(1) Every registered promoter or estate agent shall maintain such accounts, registers and
records in such form and manner as may be prescribed.
(2) The competent authority shall maintain such register as may be prescribed showing
sufficient particular of all cases in which licence under section 5 or certificate of
registration under this chapter is granted or refuses by him and the said register shall
be available for inspection without charges by all interested persons and such
persons shall be entitled to have extract therefrom.
29. The promoter or estate agent shall get his accounts audited after the close of every
financial year by a chartered accountant, and shall produce a statement of account
duly certified and signed by such chartered accountant in the manner prescribed and
it shall be verified during the audit that amounts collected for a particular purpose are
not utilised for any other purpose.

30. Every registered promoter or estate agent shall submit to the competent authority such periodical returns as may be prescribed.

31. For the purpose of satisfying itself, that the requirements of this Act and rules made
thereunder or the terms and conditions of the certificate of registration granted under
this chapter or licence granted under section 5 of a promoter or an estate agent are
duly complied with, the competent authority may inspect or cause to be inspected, at
any time during business hours, any accounts or records of a promoter or an estate
agent relating to such business.

CHAPTER IV

MISCELLANEOUS PROVISIONS


32.(1) Every promoter to whom a licnece has been grantee under section 5 to develop a
colony or who stands exempted or to whom exemption is granted under section 44
shall deposit service charges at the rate of rupee one per square metre of the plotted
area proposed to be developed by him as residential, commercial or industrial
(excluding the area used by the public for general purposes) into a colony in two
equal instalments, the first instalment to be deposited within sixty dates from the date
of grant of licence and the second instalment to be deposited within six months from
the date of grant of licence and the promoter shall in turn be entitled to pass on the
service charges so paid by him to the allottees.
Explanation,- In the case of a promoter exempted under section 44, the date of first
inviting applications for the sale of plots in any colony by it shall be deemed to be the
date for the purposes of deposit of service charges.
(2) The amount of service charges levied under sub-section (1) of not paid within the
stipulated period, shall be recoverable as arrears of land revenue.
(3) The amount of service charges deposited by the promoter under sub-section (1) or
recovered under sub-section (2) shall constitute a fund to be called “ the Punjab
Urban Development Fund” (hereinafter refereed to as the Fund) and hall vest in such
Authority as the State Government may notify in this behalf and shall be administered
by that Authority.
(4) The Fund shall be utilised by the Authority notified under sub-section (3) for the
benefit of the allottees, for development of the colonies, to promoter research and
development in town and country and urban affairs, and for such other similar
purposes as may be prescribed.
(5) The State Government shall publish annually in the Official Gazette the report of the
activities financed from the Fund and the statement of accounts.

33.(1) The State Government may, by notification in the Official Gazette, appoint an office or
an authority as appellate authority, (hereinafter referred to as appellate authority) with
the power to decide appeals against the orders of the competent authority.
Provided that the State Government may appoint as appellate authority more
than one officer or authority and distribute the work among them in the manner it may
deem fit ;
(2) Any person aggrieved by any order of the competent authority under this Act, may,
within a period of thirty days of the communication of the orders to him, prefer an
appeal to the appellate authority in such form and manner as may be prescribed.
(3) The appellate authority may, after giving an opportunity of being heard to the parties
and to the competent authority, pass such order as deemed fit, either confirming,
modifying or setting aside the order of the competent authority, and record its reasons
in writing, and the order of the appellate authority so passed shall be final, unless
revised by the State Government under section 34.
(4) In discharging its functions, the appellate authority shall have all the powers under the
Code of Civil Procedure, 1908 (Central Act V of 1908) of a civil court while deciding
an appeal.

34. The State Government, either suo moto, or, on an application from any party
aggrieved by any order within sixty days of the date of the communication to him of
such order, may call for the examine the record of any proceedings disposed of by
the competent authority, or the appellate authority, as the case may be, for the
purpose of satisfying itself as the correctness, legality or propriety or any proceedings
and of any order passed therein, and may pass such order in relation thereto as it
may deem fit :
Provided that no order adverse to any person shall be passed without giving
him an opportunity to show cause against such proposed order :
Provided further that no revision application will be entertained when an
appeal has been or could have been filed against the order.

35. No civil court shall have any jurisdiction to entertain or decide any question relating to
matters arising under this Act or the rules made thereunder and every order passed
by the competent authority subject to appeal, or, revision, every order passed by the
appellate authority subject to revision, and every order passed by the State
Government in revision, shall be final and shall not be questioned in any court of law.

36.(1) Any promoter who, without reasonable cause, fails to comply with or contravenes the
provisions of sections 3, 6, 9 (save as provided in sub-section (2) of this section) or
section 15 shall, on conviction, be punished with imprisonment for a term which may
extend to three years, or with fine which may extend to ten thousand rupees, or with
both.
(2) Any promoter who contravenes the provisions of section 9 by misusing any amount
advanced or deposited with him for any purpose other than the purposes mentioned
in section 9, shall, on conviction, be punished with imprisonment for a term which
shall not be less than six months and which may extend to five years, or with fine
which shall not be les than two thousand rupees and which may extend to ten
thousand rupees or to the amount in respect of which the offence was committed,
whichever is greater, or with both.
(3) Any promoter or estate agent who, without reasonable excuse, fails to comply with, or
contravenes, any other provision of this Act or of any rule made thereunder, or does
not pay the penalty imposed on him by the competent authority, shall, if no other
penalty is expressly provided for the offence, be punished on conviction, with
imprisonment for a term which may extend to one year, or with fine which may extend
to ten thousand rupees, or with both.
(4) Notwithstanding anything contained in the Code of Criminal Procedure 1973 (Central
Act of 1974), it shall be lawful for a Judicial Magistrate of the First Class to pass on
any person convicted of any offence under this Act, a sentence of imprisonment or of
fine or both as provided in the relevant section of this Act, in excess of his powers
under section 27 of the said Code.
(5) The fine imposed under sub-sections (1), (2) or (3) may be recovered as an arrear of
land revenue and out of the fine so recovered, the Judicial Magistrate may award
such amount as he deems fit to the person from whom the advance or deposit was
obtained by the promoter or the estate agent, as the case may be.

37.(1) If the person committing an offence under this Act is a company, the company as well
as every person who at the time the offence was committed was in charge of, or,
was, responsible to the company for the conduct of business by the company, 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 such punishment provided in this Act, if he proves that the
offence was committed without his knowledge, or that he 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
negligence on the part of any director, manager, secretary or other officer of the
company, such director, manager, secretary or other officer shall be liable to be
proceeded against and punished accordingly.
Explanation.- For the purpose of this section,-
(a) “company” means a body corporate and includes a development authority or public
authority, a firm or other association of persons; and
(b) “director” in relation to firm means a partner in the firm, and in relation to a
development authority or public authority means a person who takes decision on
matters of policy in its affairs.

38.(1) No prosecution for any offence punishable under this Act shall be instituted except
with the previous sanction of the competent authority or any person authorised in this
behalf by the competent authority.
(2) The competent authority may, either before or after the institution of the proceedings
for prosecution, compound any offence punishable by or under this Act subject to
such conditions and restrictions as may be prescribed.
(3) Where an offence has been compounded, the offender, if in custody, shall be
released and no further proceedings shall be taken against him in respect of the
offence compounded.

39.(1) Without prejudice to the provisions of this Act, the competent authority may, by
notice, call upon any person who has committed a breach of the provisions of section
20 to show cause why the structure should not be demolished and if such person fails
to show cause to the satisfaction of the competent authority within a period of fifteen
days, the competent authority may pass an order requiring him to demolish the
structure within sixty days from the date of the order.
(2) If the order made under sub-section (1) is not complied with, within the period
specified therein the competent authority may itself take such measures as it may
deem fit to give effect to the order and the cost of such measures shall, if not paid on
demand being made to it, be recoverable from such person as arrears of land
revenue.

40.(1) No suit prosecution or other legal proceedings shall lie against any officer or
employee of the State Government or of the Competent Authority in respect of
anything which is, in good faith, done or intended to be done in pursuance of this Act
or the rules made thereunder.

41. The State Government may, by notification, delegate all or any of its powers under
this Act, except the power to make rules, to any officer subordinate to it subject to
such restrictions and conditions as may be specified in such notification.

42.(1) This Act shall apply to apartments already in existence and agreements of sale of
apartments or other properties made before the commencement of this Act.
(2) As respects apartments which on the commencement of this Act have already been
constructed or converted, the provisions of sections 12, 13 and 15 shall apply with the
following modifications, that is to say,-
(a) in section 12, of the date specified or agreed to has already passed at the
commencement of this Act then the promoter shall give possession within three
months from such commencement, and thereafter the promote shall be liable to
demand to refund the amounts on the terms and conditions provided in the said
section ;
(b) in section 13, in sub-section (1), the words and figure “after the agreement referred to
in section 6 is registered” shall be read as if the words “after the commencement of
this Act” had been substituted ; and
(c) in section 15, the words “within three months from the date of giving possession” shall
be read as if the words “within three months from the commencement of this Act”
had been substituted.

43.(1) The provisions of this Act shall take effect, notwithstanding anything to contrary
contained in any other law for the time being in force or in any contract.
(2) The provisions of the Transfer of Property Act, 1882 (Central Act No. IV of 1882)
shall, in so far as they are not inconsistent with the provisions of this Act, apply to
every apartment together with the percentage of undivided interest in the common
areas and facilities apurtenant to such apartment, as they apply in relation to any
immovable property.

44.(1) Subject to the provisions of section 32, nothing in this Act shall apply if the promoter
is,-
(a) a local authority or statutory body constituted for the development of land or housing ;
or
(b) a company or a body created for development of land or housing or promotion of
industry wholly owned and controlled by the State Government or the Central
Government ;
(2) If the State Government is of the opinion that, the operation of any of the provisions of
this Act, causes undue hardship, or circumstances exist which render it expedient to
do so, it may exempt, by a general or special order, any class of persons or arrears
from all or any of the provisions of this Act, subject to such terms and conditions as it
may impose.

45.(1) The State Government may, subject to the condition of previous publication, by
notification in the Official Gazette, make rules for carrying into effect the provisions of
this Act.
(2) In particular and without prejudice to the generality of the foregoing power, such rules
may provide for all or any of the following matters, namely :-
(a) the particulars as respects the design and the materials to be used in the construction
of the building and the other information and documents to be disclosed, the manner
in which disclosure is to be made and the documents of which true copies shall be
given by the promoter under clauses (f), (m) and (n) of sub-section (2) of section 3:
(b) the other matters to be disclosed in an advertisement or prospectus under subsection
(2) of section 4 ;
(c) the for of the application, the information to be attached with the application and the
fee to be paid for the grant of permission under sub-section (1) of section 5 ;
(d) the authority to be prescribed for giving opinion to the competent authority under subsection
(2) of section 5 ;
(e) the form of licence to be issued and the agreement to be entered into under subsection
(3) of section 5 ;
(f) the fee to be paid for renewal of licence under sub-section (4) of section 5 ;
(g) the criteria of the economically weaker sections of society and the manner of
reserving residential apartments or plots for weaker sections of society and the
conditions subject to which the reservation is to be made under sub-section (2) of
section 3 and under sub-section (9) of section 5 ;
(h) the manner of recovering charges under sub-section (13) of section 5 ;
(i) the form for the agreement of sale and the particulars to be contained in and the
documents or copies thereof to be attached to such agreement under sub-section (1)
of section 6 ;
(j) the rate of interest under sub-section (2) of section 6 ;
(k) the fee to be paid under sub-section (2) of section 11 ;
(l) the particulars to be included in respect of conveyance deed of apartment under
section 15 ;
(m) the form of application under sub-section (1) of section 16 ;
(n) the matters to be prescribed under section 20 ;
(o) the form in which an application for registration of promoters and estate agents
should be made and the fee for such application, form for maintenance of
registers and the form of registration certificate under sub-section (2) of section
21 ;
(p) the qualifications for a promoter and for an estate agent and the amount and manner
of security to be furnished under section 22 ;
(q) the fee for renewal of registration under section 23 ;
(r) the form and manner of maintaining accounts, registers and records by a promoter
or estate agent under sub-section (1) and maintenance of register by the competent
authority under sub-section (2) of section 28 ;
(s) the manner in which the accounts should be audited and certified by a chartered
accountant under section 29 ;
(t) the periodical returns which a promoter or estate agent has to submit to the
competent authority under section 30 ;
(u) the purposes to be prescribed under sub-section (4) of section 32 ;
(v) form and manner in which an appeal should be preferred to the appellate authority
under sub-section (2) of section 33; and
(w) any other matter which has to be or may be prescribed by rules.
(3) Every rule made under this section shall be laid as soon as may be, after it is made,
before the House of the State Legislature, while it is in session for a total period of
fourteen 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 sessions aforesaid, the House agrees in making any modification in
the rule, or the House agrees that the rule should not be made, the rule shall
thereafter have effect only in such modified for or be no effect, as the case may be;
so however, that any such modifications or annulment shall be without prejudice to
the validity of anything previously done or omitted to be done under that rule.

46. (1) The Punjab Regulation of Colonies Act, 1975 (Punjab Act No. 10 of 1975) is hereby
repealed.
(2) The repealing of the Act under sub-section (1) shall not affect.
(i) the previous operation of the Act so repealed or anything duly done or
suffered thereunder ;
(ii) any right, privilege, obligation or liability acquired, accrued or incurred under
the Act so repealed ;
(iii) any penalty forfeiture or punishment incurred in respect of any offence
committed against the Act so repealed ;
(iv) any investigation, legal proceedings or remedy in respect of any such right,
privilege, obligation , liability, penalty, forfeiture, or punishment as aforesaid;
and any such investigation, legal proceedings or remedy may be instituted,
continued or enforced or any such penalty, forfeiture and punishment may be
imposed as if the aforesaid Act had not been repealed.
(3) Notwithstanding such repeal, anything done or any action taken under the Act so
repealed including any notification, order, notice issued, application made, or
permission granted, which is not inconsistent with the provisions of this Act shall be
deemed to have been done or taken under the corresponding provisions of this Act
as if this Act was in force at the time such thing was done or action was taken and
shall continue to be in force, unless and until superseded by anything done or any
action taken under this Act.

STATEMENT OF OBJECTS AND REASONS


For some time past the problem of controlling the activities of the private
colonisers engaged in the construction of apartments and sale of plots has been
engaging the attention of the State Government.
Some of the private colonisers are operating solely with the motive of
profits with scant regard to the interest and rights of the individual buyers of
plots/flats. In order to check, control and regulate effectively the activities of such
private colonisers and protect the interest of the consumers, the Government felt the
need to formulate of law. The National Housing Policy also stipulates a larger role for
the private initiative in adding to the Housing stock and serviced land for housing
which also needs a progressive law which encourages construction of
houses/development of plots by the private parties and fully protects the interests of
the buyers of plots/flats.
The Government of India have also prepared and circulated a Model
Draft Bill, for the guidance of the State Government to enact such a legislation
speedly.
Hence this Bill.

BAL MUKAND SHARMA,
Housing and Urban Dev. Minister.

MEMORANDUM REGARDING DELEGATED LEGISLATION

Clause 45 of the Punjab Apartment and Property Regulation Bill,
1995 empowers the State Government to make rules for carrying out the purposes of the Bill.
The powers sought are necessary for the proper implementation of the provisions of the Bill
and are normal in character.
CHANDIGARH                              G.L. KAUL,
The 13th March, 1995.                     Secretary.

N.B. - The above Bill was published in the Punjab Government Gazette (Extraordinary), dated the
13th March, 1995 under the proviso to rule 121 of the Rules of Procedure and Conduct of
Business in the Punjab Vidhan Sabha (Punjab Legislative Assembly).
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